Japan’s Nikkei 225 Stock Average fell for the fifth day on concern deflation

International News:

Japan’s Nikkei 225 Stock Average fell for the fifth day on concern deflation will deepen and banks will sell more shares to replenish capital. The dollar and the yen rose as investors pared bets on higher-yielding assets. Bank of China Ltd. is studying “various options” to replenish capital in order to ensure sustainable growth, and has no detailed plans to disclose yet, the lender said in an e-mailed statement today. Existing home sales in October surged to the highest level since February 2007, according to a National Association of Realtors report released Monday morning. Hewlett-Packard Co.'s profit jumped 14 percent in the latest quarter, proof that cost-cutting and a push into rival IBM Corp.'s stronghold of technology services is helping the company absorb a falloff in sales in most of its major divisions. Indian companies borrowed USD2.58 billion in the month of October 2009, an increase of 70%. The Reserve Bank of India could allow systematically strong banks to increase their exposure to the capital market beyond the current ceiling. The Government is expected to set up easier norms for FDI lock-in period in real-estate. Aluminium prices will be supported for the next three years by rising production costs in China and a recovery in global demand. RIL has hired advisory firm, Perella Weinberg Partners, to guide it on LyondellBasell stake acquisition.
The Securities and Exchange Board of India has issued a show-cause notice to RIL with regard to alleged-insider trading in the shares of RPL. Pantaloon has raised a sum of Rs.500 crore by issuing shares at a price of Rs.316. Tata Motors is exploring the possibility of buying the equity stake of private equity firm, Actis in Swaraj Mazda. Arcellor Mittal may set up a steel plant in Karnataka, valued at Rs.30,000 crore. Hindalco Industries initiated the process of raising up to Rs.2900 crore by selling shares to institutional investors in order to part-finance three greenfield projects. JSW Energy will enter the primary market on December 7, 2009 to raise Rs.2900 crore. HCL Technologies has bagged an order worth USD200 million from a UK-based insurance firm, Equitable Life Assurance Society. New York-based asset management firm, Apollo Management, is picking up an 11% stake in Dish TV for Rs.465 crore. Axis, PNB and five other firms have acquired 51% stake in the Indian venture of Experian UK. McNally Bharat is gearing up for major restructuring with an accent on consolidation, increasing its global presence and expanding into newer areas.
Promoters of Patni Computers have sold 0.52% stake in the company for a consideration of Rs.33.6 crore.

Technical View:

Nifty: (5103): The index opened on a positive note and remained firm throughout the day’s trading session. It ended the day with gain of 1.10%. The index is exhibiting strength post closing above the 5000 mark. The near term bias is positive as index is maintaining above the 5000 mark on closing basis. On the upside index can test 5150-5200 level. On the downside index has support around 5150 mark, intra day declines should find support around this level. Lower support is around 5100.

Derivative View:

Nifty Nov contract ends the day up by 42.05 points at a premium of 4.75 points in Nov contracts adding OI by 1.3% across all active Nifty contracts. Nifty Open Int PCR at 1.649 compared to 1.569 last day on back of addition of 21.96 Nifty puts and paring of 10.05 Lakhs calls. Nifty VIX at 26.69 from 26.64 the last day. Highest OI in Nifty put at 4800 Nov strike and calls is at 5000 Nov strike. FII side saw long build up in Nifty futures over the day and short build up in stock futures over the day. Long build up over the day seen HINDZINC, CIPLA, GAIL, AUROPHARMA, ITC, TATASTEEL, HCLTECH, UNIPHOS, SINTEX, KFA & ULTRACEMCO etc. Short build over the day seen in BALRAMCHIN, BHARTIARTL, IDEA, MPHASIS, GESHIP, RENUKA & TRIVENI etc. Market wide rollover seen at 31.43% compared to 3 month average of 28.56% in last expiry. Nifty rollover at 34.90% compared to 31.34% in last expiry. 25% higher no of Nifty contracts (43556 contracts) rolled over compared to the previous expiry.