China’s economy expanded at the fastest pace in a year

International News:

China’s economy expanded at the fastest pace in a year as stimulus spending and record lending growth helped the nation lead the world out of recession. Wells Fargo reported a profit of $3.2 billion in its latest quarter as strength in its mortgage-lending business and other units tempered the impact of losing billions in bad loans. Federal Reserve district banks identified commercial real estate as the weakest part of the economy, while most saw “stabilization or modest improvements” in areas including housing and manufacturing. Morgan Stanley’s third-quarter earnings were $757 million, or 38 cents a share, compared with $7.7 billion, or $6.97, a year earlier, the New York-based company said today in a statement. Walmart, the world’s largest retailer expects customers to delay holiday purchases, said John Fleming, chief merchandising officer.

Domestic News:

The Prime Minister’s Economic Advisory Council expects GDP to grow by around 6.5% in FY’10. The Centre has extended tax-free white sugar imports until December 2010.
The Finance Minister, Mr. Pranab Mukherjee, has categorically told Communications Minister, Mr. A Raja that 3G licenses cannot spill over to the next calendar year under any circumstances. The auction is expected to generate revenues of Rs.30,000 crore to the government. The strike by employees of auto component manufacturer Rico Auto and other auto ancillary companies have caused a production loss of around Rs.25 crore. The government is considering divesting 31% stake in Hindustan Copper, as per Mines Minister, Mr. B K Handique. Mahindra Satyam has bagged contracts aggregating UAE dirham 30 million(about Rs.38 crore) from the Middle East and North African region. RPG Cables is planning to bring in a new strategic investor a part of a plan to raise about Rs.200 crore to clean up debts and for erecting a new facility in Gujarat. Areva T&D India has been awarded a Rs.900 crore EPC contract by Mahashtra State Electricity Commission. Hedge fund Galleon is expected to liquidate its holdings. The fund has investments in Edelweiss Capital (7%), Shriram EPC(4.6%) and 0.3% in recently-listed Pipavav Shipyard.

Derivative View:

Nifty: (5063): The index opened on a flat note and declined throughout the day’s trading session. It ended the day with loss of 51 points. The index witnessed profit taking around 5150 level. Index has closed around the 10 dma level around 5067. Sustaning below the 5067 level can see it decline further towards the 20 dma level around 5040,lower support is around 5004.On the upside index faces resistance around 5095-5120 band. Nifty Oct contract ends the Day down by 33.65 points at a premium of 7.20 points in Oct contracts adding OI by 1.1% across all active Nifty contracts.
Nifty Open Int PCR at 1.348 compared to 1.381 previous day on back of addition of 3.91 Lakh in Nifty puts and addition of 14.06 Lakh call options. Nifty VIX at 26.78 from 26.69 the previous Day. Highest OI in Nifty put at 4900 Oct strike and calls is at 5100 Oct strike. Addition was seen in 5000 and 5100 strike Oct calls and 5000, 4900 & 5100 strike Oct puts saw paring of OI. FII side saw short build up in Nifty futures short build up in stock futures and Nifty options was written. Long build up seen in POLARIS, ROLTA, EKC & JINDALSTEL etc. Short build up seen in CROMPGREAV, PIRHEALTH, DIVISLAB, HCC, YESBANK, DABUR, TATAMOTORS, AUROPHARMA, SESAGOA & SYNDIBANK etc.









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