Kharif crop is expected to see a shift to cash crops.

ABB announced an open offer to shareholders of ABB India to acquire 22.89 per cent stake in it at Rs.900 a share. Tata Steel and Steel Authority of India Limited have initiated discussions to float a joint venture to produce steel. GAIL has registered a 45 per cent increase in net profit in Q4FY’10. Axis Bank has received bids from six suitors for its private equity arm. DLF confirmed that it had decided to sell its stake in ultra-luxury hotel group Aman Resorts. Shree Renuka Sugar’s Rs.1530 crore deal to acquire Brazilian sugar and ethanol maker Equipav may be called off. Tata Steel is keen on forming a JV with Steel Authority of India to set up a steel plant.
L&T recorded a 44% growth in fourth quarter net profit on better sales. The management has given a guidance of 20% revenue growth in FY’11. Aban Offshore may see its revenues fall by 15% on account of the loss of the rig. GAIL India has posted Rs.3140 crore net profit in FY’10, an increase of 12% y-o-y. Patel Engineering has emerged as the lowest bidder for contracts worth Rs.3000 crore. NTPC Ltd. is planning to float a tender to supply super critical equipment valued at Rs.19200 crore. Nifty May contracts ends the Day down by 25.60 points a discount of 9.85 points in May contracts and adding OI by 3.3% across all active Nifty contracts with indications of significant short covering. Nifty VIX at 27.17% compared to 26.53% previous Day. Nifty OI PCR at 1.102 compared to 1.118 the previous Day. Nifty call options adds 19.13 Lakh and put option adds 11.13 Lakh over the Day. Highest OI in Nifty calls seen at 5300 May strike and puts at 5000 May strike. Long build up seen in DENABANK, BGRENERGY, TATATEA, UCOBANK, LT, ABB, VIJAYABANK, DABUR, SIEMENS, LITL & KOTAKBANK etc. Short build up seen in DLF, IVRCLINFRA, POWERGRID, RELINFRA, JPASSOCIAT, PUNJLLOYD, WIPRO, CHENNPETRO, RELIANCE, BHUSANSTL, ROLTA, TATAMOTORS, HDIL, KFA, MTNL & ACC etc. Long liquidation seen in BALRAMCHIN, BHARATFORG, ZEEL, AREVAT&D, HINDUNILVR, MCLEODRUSS, ALBK, GSPL, AUROPHARMA, IBREALEST & PRAJIND etc. FII side saw short build up in Nifty and stock futures and Nifty options is seen to be bought over the day Bounces from 200 dma.Bias Down Nifty: (5060). The index opened a panic note and witnessed recovery post after noon trades. It ended the day with loss of 34 points. 200 dma: The index witnessed support around the 200 dma @ 4984 and saw intraday pullback. The level of 200 dma is critical support level. The index faces resistance around 10 dma level around 5117, intra day bounce will face resistance around this level. Pattern: Falling Channel: The index is in downtrend and is in a falling channel formation. Resistance can be expected around the upper end of the channel. Till the index is sustaining below the upper end of the channel on a closing basis the short term downtrend is likely to continue. The upper end of the channel is around 5112 level. Support: Index has critical support around the 200 dma level around 4984, break below 4984 can see index testing lower levels around 4900. Conclusion: Sell intraday rise towards 5120 levels.