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.
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