STOCKS IN NEWS
Axis Bank Ltd: The much awaited stake sale in Axis Bank by the Government-owned Specified Undertaking of the Unit Trust of India (SUUTI) is scheduled to take place via special block window on Friday.
Financial Technologies Ltd: With Sebi declaring Jignesh Shah-led Financial Technologies unfit to hold shares in stock exchanges and other related entities, it will have to dispose of holdings worth about Rs 2,500 crore in five companies.
UCO Bank: State run Uco Bank said it has sold bad loans worth Rs 1,500 crore to an asset reconstruction company to clean up its balance sheet before the end of the fiscal.
Reliance Industries Ltd: After two months of increase, natural gas production from Reliance Industries' eastern offshore KG-D6 block has again started to drop.
Tata Motors Ltd: Tata Motors-owned Jaguar Land Rover has invested 45 million pounds in a new press line at its Halewood Operations, near Liverpool, England in a bid to speed up delivery of the company's vehicles globally.
Claris Lifesciences: Ahmedabad-based pharmaceutical firm Claris Lifesciences will buy-back shares aggregating 14.49 per cent of its total equity capital from shareholders for a total of Rs 231.25 crore.
Geometric: IDBI Trusteeship Services on Thursday offloaded 3.64 lakh shares of Geometric for over Rs four crore, amid reports of a private equity player eyeing Godrej group's stake in the software service provider.
GMR Infrastructure: The infrastructure major said its shareholders have approved issue of Compulsorily Convertible Preference Shares (CCPS) worth Rs 1,136.67 crore to a group of investors, including an arm of Singapore-based investment firm Temasek Holdings.
(Source: Economic Times)
GlaxoSmithKline Consumer Healthcare: Leading bourse National Stock Exchange (NSE) said it will exclude GlaxoSmithKline Consumer Healthcare from the Futures and Options segment with effect from May 30.
Canara Bank: State-owned Canara Bank said it plans to raise Rs 1,000 crore from bonds to fund business growth. The bond committee has decided to raise additional capital of Rs 1,000 crore through issue of Basel-III complaint Tier-II bonds, Canara Bank said in a filing on the BSE.
Nifty News
Indian markets are expected to trade higher on Friday following positive trend seen in other Asian markets. The key support for the index is around 6,430 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 6430 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. The short-term bias for the index remains positive for a target of 6600 with reversal at 6430," he added.
Mehta is of the view that the medium-term outlook remains positive as the index has started forming higher tops and higher bottoms on the weekly chart and the momentum indicator has given a positive cross-over.
Pre-market: Nifty seen opening higher; may reclaim 6500 levels
The 50-share Nifty index is expected to open higher on Friday following positive trend seen in other Asian markets. Tracking the momentum, the index is expected to reclaim its crucial psychological level of 6500 in trade today.
At 07:30 a.m., Nifty India stock futures in Singapore were trading 23 point higher at 6524.50, indicating a higher opening on the domestic market.
The BSE Sensex hits two-week low on Thursday weighed down by fears that the US Fed may hike interest rates sooner-than-expected. The 50-share Nifty index also lost 40 points and concluded the day at 6483.
At 07:30 a.m., Nifty India stock futures in Singapore were trading 23 point higher at 6524.50, indicating a higher opening on the domestic market.
The BSE Sensex hits two-week low on Thursday weighed down by fears that the US Fed may hike interest rates sooner-than-expected. The 50-share Nifty index also lost 40 points and concluded the day at 6483.
"Sentiments in world markets remained down-beat after the US Fed said it would cut its monthly purchases of US Treasuries and mortgage-backed securities to $55 billion, from $65 billion," said Jayant Manglik, President-retail distribution, Religare Securities Ltd.
"Further, rupee deprecation against the US dollar also added to pessimistic sentiments. It's a testing phase for the traders as the benchmark indices have been trading in a narrow range for past eight sessions and not offering any cue for the next directional move," he added.
Manglik maintains his positive bias till the Nifty is upholding 6350 on spot basis hence one may continue to accumulate quality stocks from diversified sectors.
Nifty has given a close right at the support offered by an advancing trend line connecting the important lows of this entire up move from 5984 till now.
"Further, rupee deprecation against the US dollar also added to pessimistic sentiments. It's a testing phase for the traders as the benchmark indices have been trading in a narrow range for past eight sessions and not offering any cue for the next directional move," he added.
Manglik maintains his positive bias till the Nifty is upholding 6350 on spot basis hence one may continue to accumulate quality stocks from diversified sectors.
Nifty has given a close right at the support offered by an advancing trend line connecting the important lows of this entire up move from 5984 till now.
"The Nifty index now has the most important support placed at 6430. As long as it trades above the level of 6430 there is a possibility that it may surge higher till 6570 and beyond that 6620 to 6640 range is a possibility," 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 stocks bounced back after a batch of economic data pointed to an improving economy.
"Labor market data on Thursday showed the number of Americans filing for jobless benefits hovered near three-month lows last week," Reuters reported.
The Dow Jones industrial average rose 108.88 points or 0.67 percent, to end at 16,331.05. The S&P 500 gained 11.24 points or 0.60 percent, to finish at 1,872.01. The Nasdaq Composite added 11.684 points or 0.27 percent, to close at 4,319.286.
Asian shares were trading higher tracking gains from Wall Street which ended on a positive note despite concerns about hike in interest rates. The US Federal Reserve on Wednesday hinted that the first increase in interest rates could come in the first half of 2015.
"The U.S. dollar continued to benefit from Fed Chair Janet Yellen's suggestion that the first increase in interest rates could come in the first half of 2015, which would be earlier than many had expected," added the Reuters report.
Brent rose 60 cents to settle at $106.45 a barrel on Thursday.
Hong Kong's Hang Seng index was trading 0.17 per cent higher at 21,224.12. South Korea's Kospi index was trading 0.64 per cent higher at 1,931. China's Shanghai index was trading 0.36 per cent higher at 1,999.
Overnight, US stocks bounced back after a batch of economic data pointed to an improving economy.
"Labor market data on Thursday showed the number of Americans filing for jobless benefits hovered near three-month lows last week," Reuters reported.
The Dow Jones industrial average rose 108.88 points or 0.67 percent, to end at 16,331.05. The S&P 500 gained 11.24 points or 0.60 percent, to finish at 1,872.01. The Nasdaq Composite added 11.684 points or 0.27 percent, to close at 4,319.286.
Asian shares were trading higher tracking gains from Wall Street which ended on a positive note despite concerns about hike in interest rates. The US Federal Reserve on Wednesday hinted that the first increase in interest rates could come in the first half of 2015.
"The U.S. dollar continued to benefit from Fed Chair Janet Yellen's suggestion that the first increase in interest rates could come in the first half of 2015, which would be earlier than many had expected," added the Reuters report.
Brent rose 60 cents to settle at $106.45 a barrel on Thursday.
Hong Kong's Hang Seng index was trading 0.17 per cent higher at 21,224.12. South Korea's Kospi index was trading 0.64 per cent higher at 1,931. China's Shanghai index was trading 0.36 per cent higher at 1,999.
F&O Tracker: Nifty unlikely to breach lower support level
(Source: Economic Times)
By: Siddarth Bhamre, Angel Broking
Fed's statement has led to correction in most of the global markets and it did impact our markets, too. But this move has no impact whatsoever on our bullish stance on the market for the following reasons. First, the quantum of the fall is quite less compared to the nature of the news. Second, the correction has been due to long unwinding and not for formation of short positions, indicating continuation of downside may be unlikely. FIIs too have unwound some parts of their long index futures positions.
In the options segment, interestingly some of the put writers of 6500 and 6600 have shown signs of unwinding and same strikes of calls have added open interest (OI), indicating some resistance. In this consolidation phase, we are in a narrow range of 6470-80 to 6560-70. Nifty has taken support at around 6470 and the next support is around 6420 for the frontline index. As of now, we don't see the market breaching that lower support, and hence buying on dips is advisable.
In the banking sector, the Bank Nifty too corrected because of long unwinding. Private sector banks added some open interest, but no signs of aggressive shorting are visible there as of now. In OMCs, IOC formed significant amount of short positions and its price movement indicates that substantial downside from the current levels cannot be ruled out.
IT majors didn't add any open interest, suggesting a few covered some of their short positions. We would not indulge in aggressive buying in them as of now.
In the options segment, interestingly some of the put writers of 6500 and 6600 have shown signs of unwinding and same strikes of calls have added open interest (OI), indicating some resistance. In this consolidation phase, we are in a narrow range of 6470-80 to 6560-70. Nifty has taken support at around 6470 and the next support is around 6420 for the frontline index. As of now, we don't see the market breaching that lower support, and hence buying on dips is advisable.
In the banking sector, the Bank Nifty too corrected because of long unwinding. Private sector banks added some open interest, but no signs of aggressive shorting are visible there as of now. In OMCs, IOC formed significant amount of short positions and its price movement indicates that substantial downside from the current levels cannot be ruled out.
IT majors didn't add any open interest, suggesting a few covered some of their short positions. We would not indulge in aggressive buying in them as of now.
No comments:
Post a Comment