Zhejiang Geely Holding Group signed a binding deal to buy Ford Motor Co.'s

Zhejiang Geely Holding Group signed a binding deal to buy Ford Motor Co.'s Volvo Cars unit for $1.8 billion, representing a coup for the independent Chinese automaker which is aiming to expand in Europe. China Construction Bank Corp., the nation’s second-largest lender, more than doubled profit in the fourth quarter as bad loans declined and lending surged amid a recovery in the world’s fastest-growing major economy. Net income climbed to 20.7 billion yuan ($3.03 billion) from 8.37 billion yuan in the fourth quarter of 2008. Former Federal Reserve Chairman Alan Greenspan’s warning that rising yields on government debt will drive up American borrowing costs is resonating with the world’s biggest bond traders, who say this month’s losses in the market for U.S. Treasuries are just the beginning. The euro strengthened against the dollar for a second day on receding concern Greece’s financial crisis will derail the 16-nation region’s economic recovery. Japan’s retail sales gained at the fastest pace in more than a decade in February as the economic recovery spread to households. Sales rose 4.2 percent from the year earlier. Junk bond sales reached a record this month as rising profits and record low Federal Reserve interest rates foster lending and investment to the lowest-rated borrowers. Companies worldwide issued $38.3 billion of junk bonds this month, passing the previous high of $36 billion in November 2006, according to data compiled by Bloomberg. The Reserve Bank of India will announce the government’s borrowing time table for April to September period today. The government has told the Reserve Bank of India that the norms for approval of new banking licences could be based mainly on the existing policy framework for ownership of private banks. This could be negative for private business houses planning to open banks. The Insurance Regulatory and Development Authority(IRDA) is wanting insurance companies to announce a number of key issues such as future profits from present business, agreements with foreign promoters, among other things, as per a senior IRDA official. Hero Honda plans to set up Rs.2000 crore plant in Karnataka. )
SKIL will buy Punj Lloyd’s 19.5% stake in Pipavav Shipyard. Bhilwara Energy plans to raise about Rs.3000 crore through equity route to fund its four hydro power projects with a total installed capacity of 1083MW. JSL, formerly Jindal Stainless Limited, plans to raise USD50 million via QIB issue. Axis Bank is in talks with Max New York Life to acquire up to 5% stake. BSNL has finalized a war chest of Rs.14000 crore to preserve its market share. Half of this amount will go for investment in mobile network. Tata Steel is planning to raise at least USD500 million via global depository receipts. L&T has won USD82 million contract from Oman to revamp and extend electrical networks. Nifty April contracts ends the Day up by 23.95 points at a premium of 14.95 points in April contracts and adding OI by 8.1%. Nifty VIX at 17.89% compared to 17.05% previous day. Nifty OI PCR at 1.174 compared to 1.229 the previous day. Nifty active puts sees addition of 27.20 Lakhs and calls sees addition of 37.92 Lakhs over the Day. Highest OI in Nifty calls seen at 5300 April strike and puts at 5000 April strike. Nifty VIX at 17.05 from 17.89 in the previous session. Long build up during the session seen in AREVAT&D, BAJAJ-AUTO, PATELENG, VIDEOIND, FORTIS, IFCI, CHENNPETRO, AXISBANK, SUNTV, EKC, PUNJLLOYD, ESSAROIL, IOB, SINTEX, TATACHEM, CENTURYTEX & STERLINBIO. Short build up was seen in COLPAL, BAJAJHIND, SIEMENS, DRREDDY, SESAGOA & JISLJALEQS etc. Long build up was seen in Nifty futures from the FII side. Short build up seen in Stock futures from the FII side. Good addition in Nifty options seen during the day from the FII side.

Outlook & Strategy:

Markets are expected to open the week a positive bias with resistances in Nifty near contract seen around 5330 levels above which 5380 can be tested. Supports seen around 5180-5120 levels for the week. Stocks with a positive bias at the open of the week with further upsides seen are AREVAT&D, BAJAJAUTO & VIDEOIND.