Trade news.: June 2010

Saturday, June 26, 2010

Asian stocks fell, dragging the MSCI Asia Pacific Index lower for the third time in four days

The yuan headed for its biggest weekly gain since December 2008 as China set the currency’s daily reference rate at a record high against the dollar, allowing appreciation before the G- 20 meeting tomorrow. Taiwan’s central bank unexpectedly raised its benchmark interest rate for the first time since 2008, joining Asian policy makers from China to Malaysia in signaling confidence the global recovery will withstand Europe’s debt woes. Senate negotiators offered changes to the regulatory-overhaul bill that would strengthen part of the language banning proprietary trading at U.S. banks while giving them leeway to invest in private-equity and hedge funds.
The Mines Minstry is against any further stake dilution in Nalco. Food inflation rose to 16.9% for the week ended June 12 compared to the previous week ‘s 16.12% putting pressure on RBI to increase intrest rates. Century Plyboards to demerge cement,ferro-alloys business. Petronet LNG plans a rights issue to fund its propsed power project. Gmr –Malaysian airlines combine has won the contract for 360 million dollars for the airport at Male in Maldives. Alstom close to signing nuclear power projects deal with Bhel,Nuclear Power. Jet Airways in talks with various parties like Godrej Properties for developing its Bkc plot. Future Capital to focus highly on its retail,whoesale credit business. Nifty rolls over 70.28% compared to 65.99% in the previous expiry and 3 month average rolls of 69.3%. In no of contracts rolled over Nifty saw 15.68% higher no contracts rolled over compared to the previous expiry. Nifty rolls have been higher than the 3 month average in the number of contracts rolled over. Market wide rollover at 77% is in line with the average rolls. Textile, Banking, Fertilisers, Index, Realty, Capital Goods & Cement saw a rise in rollover compared to last expiry. Sugar, Media, Pharma, FMCG, Oil & Gas & Automobile saw a fall in rollover compared to previous expiry. Among Nifty stocks above 20% rise in rollover compared to last expiry was HCLTECH, KOTAKBANK, AMBUJACEM, RPOWER, ICICIBANK, WIPRO, IDFC & BPCL etc. Among Nifty stocks fall in rollover above 20% was seen ABB, GAIL, RANBAXY, HINDUNILVR, SUNPHARMA, SIEMENS, JINDALSTEL & STER etc. Among other stocks in F&O with significant rise in rollover were BGRENERGY, BOSCHLTD, PFC, STER, UNIPHOS, HCLTECH, YESBANK, ASIANPAINT, GRASIM, PANTALOONR, BANKNIFTY, KOTAKBANK, WIPRO, PATNI, DCHL, GODREJIND & VOLTAS etc. The new series begins with highest OI in Nifty puts at 5200 July strike and calls at 5500 July strike with an indicative support for the market around 5180 levels and resistances around 5450 levels. Nifty put call ratio at 1.191 is at a lower level compared to the open of the last expiry which was at 1.216.
Positive moves are expected in GODREJIND, GLAXO & VOLTAS during the earlier part of the expiry. Negative moves are expected in HCLTECH & KOTAKBANK Can see declines Nifty (5320): Index opened on a flat note and remained range bound throughout the day’s trading session. It ended the day with loss of 2 points. The index is facing stiff resistance around the 5342 level, intra day rallies are facing stiff resistance around this level. Till index is not sustaining above the 5342 level on a closing basis we can see profit taking in the near term. On the momentum chart, Stochastic (5, 3) is in overbought zone and in sell mode.RSI (14) is exhibiting a reading of 62.67(reading of 70 signifies overbought). Resistance can be expected around the 5342 level. On the downside index has support around 5300, break below 5300 can see index decline towards 5264-5205 (10dma) where support can be expected. Conclusion: Overbought reading suggests declines in near term.

Most Asian stocks rose

Most Asian stocks rose as material companies jumped following Australian Prime Minister Kevin Rudd’s resignation over his proposed tax on mining. Japanese exporters fell on a slump in U.S. housing sales. The dollar declined to a six-week low against the pound as traders increased bets the Federal Reserve will keep interest rates near zero for longer in order to support a recovery in the world’s largest economy. American International Group Inc., the insurer bailed out by the U.S. government, will pay some executives in units whose value is tied mostly to debt, rather than common stock, as it seeks to retain managers. Service tax waived on power supply,services within ports in the North East.India’s handicraft exports grew by 19%to over 154.16 million dollars on strong US demand. Renuka Sugars to pay Rs.1151 crore for its acquisition of Brazilian company Equipav. Cable Corp to develop Rs.1000 crore realty project. Bank of Rajasthan board meet today to discuss further steps of its propsed merger with Icici Bank. Reliance Communications signs 5 year deal with African bank. Coal Ministry rules out more than 10% stake sale in Coal India instead of the mandatory 25% public float norm. Tata Motors to raise Rs.2500 crore via FCCB’s to reduce its debt. Nifty near contracts ends the Day up by 13.30 points adding OI by 9.3% during the day. Nifty rolls over 54.26% compared to 52.65% in the previous expiry and 3 month average rolls of 54.44%. In no of contracts rolled over Nifty saw 10.41% higher no contracts rolled over compared to the previous expiry. Nifty rolls have been higher than the 3 month average in the number of contracts rolled over. Among Nifty stocks above 20% rise in rollover compared to last expiry was RPOWER, ICICIBANK, KOTAKBANK, HDFCBANK, RELINFRA, AXISBANK, RELCAPITAL, HCLTECH & AMBUJACEM etc. Among Nifty stocks fall in rollover above 20% was seen ABB, HINDUNILVR, GAIL, SUNPHARMA, RANBAXY, SIEMENS, TCS, INFOSYSTCH, JINDALSTEL, TATAPOWER & HINDALCO etc. Among other stocks in F&O with significant rise in rollover were BGRENERGY, PFC, UNIPHOS, DCHL, APIL, GODREJIND, VIJAYABANK, YESBANK, ASIANPAINT, COLPAL, GLAXO, VOLTAS, BANKNIFTY, CESC, APOLLOTYRE, TATATEA, NAGARFERT, DABUR, BIOCON, GRASIM, ALBK, SUNTV, FEDERALBNK, ICSA, LUPIN, EKC, BANKBARODA &UNIONBANK etc Long build up seen in GTLINFRA, DRREDDY, TECHM, HCC, VIJAYABANK, ORCHIDCHEM, DENABANK, FORTIS, SINTEX, NAGARFERT, OPTOCIRCUI, DISHTV & UNITECH etc over the Day. Short build up seen in SOBHA, HCLTECH, MPHASIS, RPOWER, NTPC & RNRL etc over the Day. FII side saw long build up continuing in Nifty futures and short build up in stock futures. Nifty options was bought. Range bound moves is expected during the day with resistances at 5360 and supports at 5280 levels during the day. Trading around resistance Nifty (5323): Index opened on a negative note and remained range bound throughout the day’s trading session. It ended the day with gain of 6 points. The index faces resistance around the 5342 level (high of April 2010); profit taking can be expected around this level. Till index is not sustaining above the 5342 level on a closing basis we can see profit taking in the near term. On the momentum chart, Stochastic (5, 3) is in overbought zone and in sell mode.RSI (14) is exhibiting a reading of 62.92(reading of 70 signifies overbought). The index has closed around the 5342 level, sustaining above 5342 can see index the index test higher levels around 5500 in the near term.
On the downside index has support around 5300, break below 5300 can see index decline towards 5264-5205 (10dma) where support can be expected. Conclusion: Sustaining above 5342 can see higher levels in near term

Asian stocks fell, dragging the MSCI Asia Pacific Index to its biggest drop in two weeks

The euro declined to a one-week low against the yen on concern that European banks will incur rising loan losses from the region’s debt crisis, hampering the worldwide economic recovery. China’s yuan held this week’s gains against the dollar, even as Asian currencies dropped, on speculation that China’s central bank is allowing a stronger currency to curb inflation after ending a two-year peg. Investors are returning to junk bonds after the worst month since 2008 on speculation the economy is growing fast enough to avert corporate defaults without sparking inflation. The Enpowered Group of Ministers will meet on Friday to decide on hike in petrol and diesel. Reliance telecom arm Infotel and other telecom firms have paid Rs.30,229 crore towards broadband wireless spectrum. Wochardt promoters pledge 61.87% stake i.e 67 million shares of their holdings in the company. Piramal Healthcare to acqure assets of Canadian medical device firm Biosyntech for Rs.15 crore. Reliance close to acquiring second shale gas field in US by paying Rs.6200 crore. Netherlands based Rabobank sells 11% stake in Yes Bank. Shree Cements will invest Rs.450 crore this year to set up a 1.5 million clinker and grinding unit in Rajasthan. Bharti Airtel to invest 100 million dollars in the next three years on expansion in Malawi in Africa.
Nifty near contracts ends the Day down by 37.35 points adding OI by 14.4% marginally during the day. Nifty rolls over 40.18% compared to 44.59% in the previous expiry and 3 month average rolls of 42.18%. In no of contracts rolled over Nifty saw 20% lower no contracts rolled over compared to the previous expiry. Nifty rolls have been higher than the 3 month average in the number of contracts rolled over. Among Nifty stocks above 20% rise in rollover compared to last expiry was HDFCBANK, RELINFRA, RPOWER, RELCAPITAL, BPCL, M&M, ICICIBANK & SBIN etc. Among Nifty stocks fall in rollover above 20% was seen ABB, GAIL, HINDUNILVR, SIEMENS, TCS, INFOSYSTCH, JINDALSTEL, HEROHONDA, RANBAXY & HINDALCO etc. Among other stocks in F&O with significant rise in rollover were BGRENERGY, APIL, UNIPHOS, STER, PFC, CNXIT, GODREJIND, VOLTAS, DCHL, COLPAL, ASIANPAINT, YESBANK, BANKBARODA, LUPIN, ICSA, CHENNPETRO, APOLLOTYRE, VIJAYABANK, CESC, BANKNIFTY, KSOILS & BIOCON etc Long build up seen in BIOCON, JPPOWER, BOSCHLTD, VOLTAS, HINDPETRO, ESSAROIL, IOC, TTML, GODREJIND, PRAJIND, NATIONALUM, RECLTD, DISHTV & RENUKA etc over the Day. Short build up seen in JINDALSTEL, PATNI, ACC, TECHM, ULTRACEMCO, WELCORP, IDFC, LITL, INDIACEM & WIPRO etc over the Day. FII side saw significant addition in Nifty futures during the session and Nifty options was bought during the session. Stock futures was sold with a rise in OI indicating short build up. Nifty near puts saw paring of positions and near calls saw addition over the day. Addition in near calls was in 5300 and 5400 strike during the day with indications of resistance area moving down. Market bias is expected to be negative to neutral during the day with supports seen around 5280 – 5260 levels. Resistance around 5342 Nifty (5262): Index opened on a negative note and remained range bound throughout the day’s trading session. It ended the day with loss of 37 points. The index is facing resistance around the 5342 level (high of April 2010); profit taking can be expected around this level. Till index is not sustaining above the 5342 level on a closing basis we can see profit taking in the near term. On the momentum chart, Stochastic (5, 3) is in overbought zone and in sell mode.RSI (14) is exhibiting a reading of 62.56(reading of 70 signifies overbought).Overbought reading on momentum oscillators suggest index can dip down in near term. On the downside index has support around 5300, break below 5300 can see index decline towards 5205 (10dma) where support can be expected. Conclusion: Overbought in near term can decline from current levels.

Asian stocks fell for the first time in nine days after Fitch Ratings

The Chinese yuan weakened 0.24 percent, the biggest decline since December 2008, after the central bank sought more flexibility in the currency. The yen traded near a one-week high against the euro on speculation that European banks will struggle to raise money amid the debt crisis, supporting demand for Japan’s currency as a refuge.
The Petroleum Minister,Murli Deora has told states to reduce and rationalize VAT and sales tax on auto fuels-petrol and diesel. Sick Psu’s may get loans at priority sector rates if the finance ministry agrees to a proposal suggesting thast loans be classified as priority sector lending. BEML to invest Rs.680 crore in new, existing facilities over the next five years. Hinduja Global Solutions ,the BPO arm of the Hinduja Group has acquired UK-based customer relationship management company Careline Services. Oil India gets extension for petroleum licenses for 10 of its 16 exploration blocks in Assam and A.P. Tata Steel gets environmental ministry clearance for expansion of its Jamshedpur plant. Bharti Airtel to invest 100 million dollars in Uganda over two years. Nifty near contracts ends the Day up 96.50 points Paring OI marginally during the day Nifty rolls over 27.16% compared to 29.41% in the previous expiry and 3 month average rolls of 31.5%. In no of contracts rolled over Nifty saw 22.13% lower no contracts rolled over compared to the previous expiry. Among Nifty stocks above 20% rise in rollover compared to last expiry was SAIL, ITC, RELCAPITAL, LT, HDFCBANK, RELINFRA, BPCL, M&M, ICICIBANK, RPOWER, AMBUJACEM, INFOSYSTCH, RELIANCE & SBIN etc. Among Nifty stocks fall in rollover above 20% was seen ABB, GAIL, TCS, ACC, HCLTECH, HINDUNILVR, ONGC, GRASIM, RANBAXY & HINDALCO. Among other stocks in F&O significant rise in rollover was seen in UNIPHOS, INDIACEM, APIL, ICSA, COLPAL, BANKBARODA, EKC, CESC, BIOCON, PIRHEALTH, FEDERALBNK, LUPIN, MCDOWELL-N, ABAN, BRFL, TATACOMM, ABIRLANUVO, VIJAYABANK, KSOILS, DABUR, NAGARFERT, BHUSANSTL, INDIAINFO, ASIANPAINT, GTOFFSHORE,TV-18 & VOLTAS etc. Long build up seen in TATATEA, APIL, VOLTAS, HINDZINC, GMDCLTD, SAIL, ICSA, DLF, BANKNIFTY, BANKINDIA, IBREALEST, BRFL, ICICIBANK, GODREJIND, NOIDATOLL, OPTOCIRCUI, KOTAKBANK, RELMEDIA etc over the Day.
Short build up seen in PATNI, GTLINFRA, ONMOBILE, FORTIS etc over the Day. Nifty options addition in near contracts has now moved to higher strikes with indications of market supports moving higher. 5300 and 5400 June puts and 5400 and 5600 June calls saw significant addition over the day. Nifty VIX moved down and Nifty OI PCR moved up indicating continuing positive bias. Lower rolls is seen in Nifty and a rise in rollover activity could increase the volatility and probably some downside pressure during the day. Market supports seen around 5280 levels during the day.
Trading near Resistance Nifty (5353): Index opened on a positive note and exhibited strength throughout the days trading session. It ended the day with gain of 90 points.
The index has closed around the critical resistance level of 5342.Sustaning above the 5342 level on a closing basis can see the index test higher levels around 5400 (high of April 2010).Index can see range bound movements around 5300 level with intra day volatility. Support: The index has support around 5294, break below 5294 can see index drift down towards lower support around 5250. Conclusion: Bias positive above 5342.