US new claims for unemployment posted a surprisingly large tumble last week

International News:

economists who were expecting orders to rise 0.5%. Orders for goods meant to last three years or more gained 2% in September. (Source: CNNMoney) US new claims for unemployment posted a surprisingly large tumble last week, falling to 466,000, a 14-month low. US new home sales rose to a 430,000 annual unit rate in October from a 405,000 unit rate in September. Economists expected sales to dip to a 404,000 annual unit rate. US personal income and spending climbed in October, according to a Commerce Department report released in the morning. Income rose 0.2% after rising 0.2% in September. US orders for durable goods fell 0.6% in October, surprising .Most Asian stocks rose, led by commodity producers after oil and metal prices climbed. Japanese automakers and electronic companies declined as the U.S. dollar traded close to a 14-year low against the yen.

Domestic News:

The Department of Economic Affairs, the Ministry of Commerce and Industry and the Reserve Bank of India have come to a consensus that foreign institutional investment in a company should be monitored on a monthly or a quarterly basis to ensure that there is no breach of sectoral caps under the proposed foreign direct investment guidelines. TRAI is set to come out with revised rates for all cable TV channels by December-end. The central government has created a new division within the NHAI for developing expressways in the country. The Government also plans to seek USD 2.95 billion loan from World Bank. The Banks may get more time for NPA provisioning till March 2011 from the earlier proposed deadline of September 2010. Sugar mills in Uttar Pradesh have agreed to pay farmers a price of up to Rs.190-195 per 100 kg.

Corporate news:

ITC announced that the company is not disinclined to the idea of a fight for East India Hotels. Bajaj Hindusthan has lined up a capex of Rs.1600 crore for power capacity expansion. Welspun Gujarat raised USD250 million by way of institutional placement of shares and bonds issues. Oman Oil has paid a full 50 per cent premium for a re-entry into the Rs.11397 crore Bina Refinery of BPCL. Infotech Enterprises plans two buy outs in US for up to USD40 million. Tata Communications has signed an agreement with the Qatar-based Qtel for a new undersea cable network that will connect a number of regional operators in the Gulf region with the country. Lanco Infratech is tying up funds for three power projects entailing total investments of over Rs.15000 crore.

Technical View:

Nifty: (5108): The index opened on a positive note and remained range bound throughout the day’s trading session. It ended the day with gain of 0.35%. The index is witnessing consolidation around the 5100 level. It can see range bound trading around this level. On the downside index has support around the 5050-5000 level, near term bias will be considered positive till index sustains above the 5000 level on a closing basis. Intra day index has support around 5050.On the upside index faces resistance around 5150 level. Nifty Nov contract ends the day up by 21. points at a premium of 0.10 points in Nov contracts adding OI by 7.9% across all active Nifty contracts. Nifty Open Int PCR at 1.711 compared to 1.659 last day on back of addition of 8.50 Lakh Nifty puts and paring of 9.78 Lakhs calls. Nifty VIX at 24.85 from 26.09 the last day. Highest OI in Nifty put at 4800 Nov strike and calls is at 5200 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 BPCL, ORCHIDCHEM. GAIL, IOC, BAJAJ-AUTO, HINDPETRO, IOB etc. Short build over the day seen in MPHASIS, NAGARFERT, TECHM, HDIL, IBREALEST & DLF etc. Market wide rollover seen at 64.38% compared to 3 month average of 59.9% and 58.99% last expiry. Nifty rollover at 63.68% compared to 64.40% in last expiry. 3 month average rollover at 61.35%. 6.6% ( 27449 contracts) higher no of Nifty contracts gets rolled over compared to last expiry.