Stocks in News
(Source: Economic Times)Reliance Industries Ltd: British energy giant BP and Niko Resources of Canada are likely to formally join their partner Reliance Industries' arbitration against government levying penalties for KG-D6 gas production falling short of target.
TCS Ltd: Country's largest software services firm Tata Consultancy Services has deployed a maintenance, pepair and overhaul (MRO) application for Garuda Indonesia Airlines
SpiceJet Ltd: The directorate general of civil aviation (DGCA) on Wednesday issued a show-cause notice to SpiceJet, asking why its licence should not be suspended, after a video of the cabin crew on a Goa-Bangalore flight dancing in the aisles went viral on social media.
Financial Technologies & MCX: Capital markets regulator Sebi on Wednesday directed Jignesh Shah-led Financial Technologies India to sell its shares in MCX-SX and other exchanges within 90 days on the ground that it did not meet the 'fit and proper' criteria required for a shareholder of an exchange.
IDFC Ltd: IDFC Alternatives, a wholly-owned subsidiary of IDFC Ltd, raised its first fund of Rs 750 crore focused on the residential sector in India.
NTPC Ltd: The government has ordered power major NTPC to furnish a Rs 233 crore bank guarantee to expedite development of a coal block in Chhattisgarh and said failure to submit the surety may result in cancellation of the mine.
Coal India Ltd: State-run Coal India has been forced to stop mining at several blocks including six big mines where millions of tonnes of coal can be quickly excavated but the output has already reached the limits allowed by the environment ministry.
SAIL: Steel producer Steel Authority of India would enhance its Bhilai plants capacity to 7.5 million tonnes (mt) per annum from current 5 mt, that would entail an investment of R17,265 crore, said media reports.
SUN TV Ltd: Kalanithi Maran-owned Sun TV has inked pacts with online video publishing site Youtube and Apple's iTunes to sell its proprietary content on the platforms on a pay-for-view-basis.
Nifty News:
Indian markets are expected to trade in a range on Thursday following muted trend seen in other Asian markets. The key support for the index is around 6,480 levels.
"The Nifty is expected to trend up till 6575 in the next couple of days. In this period the key support will be at 6480 and resistance will be at 6575," said Somil Mehta, Senior Tech Analyst (Equity) at Sharekhan.
"The Nifty has been forming higher tops and higher bottoms; it has also closed above the previous swing's high which is a positive sign for the market," he added.
Mehta is of the view that the short-term bias remains positive for a target of 6600 with reversal at 6430. The medium-term outlook remains positive as the index has started forming higher tops and higher bottoms on the weekly chart.
Pre-market: Nifty seen opening lower; may retest 6500 levels
(Source: Economic Times)The 50-share Nifty index is expected to open lower on Thursday following muted trend seen in other Asian markets. Tracking the momentum, the index is expected to retest its crucial psychological support level of 6500 in trade today.
At 07:30 a.m., Nifty India stock futures in Singapore were trading 26 point lower at 6525.50, indicating a lower opening on the domestic market.
The benchmark Sensex ended almost unchanged, while Nifty managed to hold levels above 6500, amid global markets turning cautious ahead of a closely-watched US Federal Reserve policy meeting
"Participants preferred to keep cautious stance on Wednesday, ahead of US Fed meeting outcome. As a result, the benchmarks were remained in a narrow range and closed flat in the end. However, mixed move in sectoral indices kept the traders busy," said Jayant Manglik, President-retail distribution, Religare Securities Ltd.
"Our domestic markets would be reacting on the Fed outcome on Thursday, however; majority isn't expecting any surprises," he added.
Manglik is of the view that in an uncertain time, it's always beneficial to keep the positions hedged especially leveraged trades and add some position from defensive sectors i.e. pharma and FMCG.
The Nifty index ended the day with a gain of 7 points at 6524 and now has immediate support placed at 6485 and below that 6430 is an important support to watch out for the short term.
"As long as it trades above the level of 6430 there is a possibility that it may surge higher till 6620 to 6640 range," GEPL Capital said in a report.
"Only in case if it breaks 6430 then we may see a deeper decline till 6350 which is the next support for the index," added the report.
Overnight, US markets ended lower after comments from Federal Reserve Chair Janet Yellen raised the possibility of an earlier- than-anticipated increase in interest rates.
"Equities extended declines after Fed Chair Janet Yellen said the "considerable period" between the end of its quantitative easing program, known as QE, and the first rate increase from the central bank could be six months," Reuters reported.
"With QE forecast to wind down sometime near the end of the year, a six-month lag would move up the timetable for the Fed's first hike, which many market participants had been expecting in the second half of 2015," added the report.
The Fed also said it would cut its monthly purchases of U.S. Treasuries and mortgage-backed securities to $55 billion, from $65 billion.
The Dow Jones industrial average fell 114.02 points or 0.70 percent, to end at 16,222.17. The S&P 500 slipped 11.48 points or 0.61 percent, to finish at 1,860.77. The Nasdaq Composite dropped 25.711 points or 0.59 percent, to close at 4,307.602.
Asian markets were trading lower tracking losses from Wall Street, after Fed Chair Janet Yellen signalled at raising rates earlier than expected.
"The futures market for the Fed funds rate shifted to pricing in around a 50-50 chance of the first hike in May to June next year. The timing had been July to August ahead of the Fed statement," said a Reuters report.
Japan's Nikkei 225 index was trading 0.5 per cent lower at 14,378.50 and Hong Kong's Hang Seng index was trading 0.55 per cent lower at 21,451.12.
South Korea's Kospi index was trading 0.7 per cent lower at 1,924. China's Shanghai index was trading 0.2 per cent higher at 2,026.
Nifty recorded multi-year breakouts last week; best to hold on to longs
(Source: Economic Times)By Siddarth Bhamre
Last week we saw markets consolidating in a range, but then faced some resistance around 6,550 levels. In Friday's trade, the market went below 6,450 and that's when bearish voices started resurfacing in the market. However, this was merely an intraday worry as the Nifty closed above 6,500 levels.
This 100-point retracement from the highs led to negative view floating in the market, which in turn suggests that participants are still not ready to take this upside move above 6,150 as a strong breakout.
On monthly charts, if one sees then it is quite evident that it's a multi-year breakout for this market above 6,350 levels, though some participants for right reasons would wait for the end of this month and see if the market closes above the breakout level.
On daily charts, Friday's intraday pullback has given further confidence to hold on to long positions. RSI and Stochastic, which were in complete overbought zone, have managed to slip out of that zone without bothering market too much on the price front on a weekly basis.
Bank Nifty is facing some resistance around 12,200-12,250 zone. Last year, in the first half of March and December, this index faced heavy overhead pressure in the above price zone. It now has a strong support at around 11,600 levels which is not too far considering the index falls from current levels. Volumes were low last week in Bank Nifty compared to what we saw weeks before.
There may be some consolidation or slight correction just like last week; however, trend continues to remain upwards and we advise to continue to hold on to long positions in frontline stocks and indices.
(The author is Head - Equity Derivatives and Technicals at Angel Broking. Views and recommendations expressed in this section are his own and do not represent those of EconomicTimes.com. Please consult your financial advisor before taking any position in the markets)
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