Support & Resistances for 22 June 2009

Support & Resistances for next trading day (22-06-2009)
		SENSEX	NIFTY	FUTURE (June2009)
				BANKNIFTY	NIFTY
19-06-2009	Open	14321.98	4251.10	7150.80	4296.05
	High	14559.08	4326.20	7259.50	4338.90
	Low	14179.77	4206.70	6995.05	4202.20
	Close	14521.89	4313.60	7219.45	4323.80
	LTP	14530.85	4315.75	7259.50	4326.00
	Range	379.31	119.50	264.45	136.70
22-06-2009	R3	15178.87	4521.17	7686.90	4561.70
	R2	14799.56	4401.67	7422.45	4425.00
	R1	14660.72	4357.63	7320.95	4374.40
	PP	14420.25	4282.17	7158.00	4288.30
	S1	14281.41	4238.13	7056.50	4237.70
	S2	14040.94	4162.67	6893.55	4151.60
	S3	13282.32	3923.67	6364.65	3878.20
R1/R2/R3: Resistance
PP: Pivot Point
S1/S2/S3: Supports

Headlines (19 June 2009)

Date: 19 June 2009

 Thought for the day

“Those who cannot change their minds cannot change anything.”

— George Bernard Shaw

 GENERAL

1)THE government on Thursday set up a high-level committee, headed by Cabinet Secretary K M Chandrasekhar, to strengthen the coastal security apparatus and regularly monitor progress in measures taken after the 26/11 Mumbai terror attacks.

 Indian Express

 ECONOMY

2)FOR the first time in over 30 years, inflation turned negative at minus 1.61% for the week ended June 6. But analysts and policy advisors said India did not face the threat of a contraction in demand or deflation as the economic growth was holding up.

FE

3)THE proportion of Indian Foreign Direct Investment(FDI) projects in the UK grew 44% in the previous fiscal, according to the UK inward investment results 2008-09 released this week. India came in second only to the US, taking Japan’s place as the largest Asian supplier of FDI projects to the UK.

ET

 CORPORATE / INDUSTRY

4)The Godrej group has decided to set up a mergers and acquisitions (M&A) cell to explore opportunities in India and abroad. Mr Adi Godrej, Chairman, Godrej Group, said at a recent analysts meet, “We have great opportunities in geographical expansion, in channel expansion, and then getting into other countries in neighbouring Africa. We are exploring opportunities both in India and outside. The money raised through the rights issue will be used for acquisition opportunities.”

BL

MONEY & BANKING

5)The rupee continued to be under pressure due to global risk aversion and the negative domestic stock market. The rupee opened at 48.01 and touched a low of 48.32 during the day. It closed at 48.21, against the previous close of 48.14.

BL

6)AFTER many months of insipid growth, the banking sector is finally seeing a gradual pickup in credit offtake. Banks have recorded the highest fortnightly growth in loans this fiscal(FY10) of Rs 21,460 crore as of June 5, according to Reserve Bank of India’s(RBI) latest data.

ET

7)Aided by a strong showing in the non-interest income, DBS Bank India recorded an almost four-fold increase in the net profit to Rs 259 crore for the financial year ended 31 March,2009 as against Rs 65 crore in the previous year.

BS

INSURANCE

8)THIS could well be the beginning of a rate war in insurance space. Birla Sun Life Insurance is set to launch a new term insurance plan that will be the cheapest yet for those with healthy lifestyles, even as competition compels life insurers to find innovative ways of reducing prices before tables on revised life expectancy data are finalised. A term insurance policy is one that provides only life protection cover for a fixed period of time. Until now, the best rates offered were ‘standard’ or ‘ordinary’, wherein companies further loaded the premium if the policyholder was found to be suffering from smoking or drinking addiction, blood pressure, diabetes or obesity. This is the first time that an insurance company is offering a product that rewards those having good family health history and healthy behaviour with a discount. Such policies are present internationally. For instance, insurance products in Australia offer discounts to those who go to gymnasiums regularly. These policies even offer coupons, entitling policyholders to discounts on gym membership.

ET

9)Tata AIG Life Insurance Company has launched Jeevan Lakshya, a hassle free unit linked insurance plan that helps the customer create wealth to meet his financial goals. The product has an innovate feature whereby, every year from the 3rd year onwards, additional allocations are added to the customer’s fund.

FE

MARKETS

10)Indian equity indices closed the day below the dotted line, following weak cues from the Asian markets and profit-booking in the domestic markets. The 30-share Sensex of Bombay Stock Exchange fell 257.31 points, or 1.77%, to close the day at 14,265.53 points. The broader S&P CNX Nifty of National Stock Exchange ended the day at 4,251.40 points down 104.75 points, or 2.40%.

FE

11)Stock market regulator Securities & Exchange Board of India(Sebi) on Wednesday introduced anchor investors in public stock issues, made investment in mutual funds cheaper by clipping away entry loads and halved the fees for registration of foreign institutional investors and their sub-accounts, for derivatives trading and brokers. The proposal approved by the board of Sebi on Wednesday will revive capital raising process through the primary and the secondary markets and make transactions cheaper so that the exchanges reach out and expand their businesses.

FE

12)With the National Stock Exchange (NSE) adopting the free-float market capitalisation method to calculate its benchmark indices from June 26, weights of public sector undertakings (PSUs) in the Nifty will come down by at least 50 per cent. The 10 PSU stocks in the Nifty, which currently account for 30 per cent of the benchmark’s total weight, will contribute only 17 per cent weight to it from that date.

BS

IPO

13)Market regulator the Securities and Exchange Board of India(Sebi) today allowed the concept of anchor investor(AI) in every initial public offering(IPO), who can invest up to 30 per cent of the institutional quota. The objective is to ensure a more robust price discovery mechanism for IPOs and boost the primary market. An AI would have to be a qualified institutional buyer and invest a minimum of Rs 10 crore. It also has to bring in 25 per cent of the margin an application and another 75 per cent within two days of the closure. The lock-in period of an AI will be 30 days, said C B Bhave, chairman, Sebi today.

BS

MUTUAL FUNDS

14)INVESTING in a mutual fund is about to change forever. Investors will now have the freedom to directly negotiate on the fee that they pay for the services of distributors or brokers during purchase of mutual fund schemes. They will get to invest the entire amount in the mutual fund units, while separately pay the distributor for the services rendered.

ET

COMMODITIES

15)The commodity markets regulator the Forward Market Commission (FMC) has directed commodity exchanges to levy non-compliance charges on high value cash dealings. According to the FMC circular issued on Thursday, cash transactions upto Rs 10 lakh will attract no charges while traders will have to pay 0.1 per cent of commodities’ transaction value if they wish to settle in cash. “The move was to discourage cash dealing in commodity space,” Rajeev Agarwal member of the FMC, said.

BS

16)Gold edged lower in Europe on Thursday, pressured by gains in the dollar, but trading was muted ahead of US data due later in the session. Spot gold was bid at $936.25 an ounce at 1048 GMT, against $938.40 an ounce late in New York on Wednesday.

BL

 REAL ESTATE

17)Major infrastructure developers such as Tata Realty Infrastructure, Reliance Infrastructure, Akruti City, IL&FS Transportation Networks, Shapoorji Pallonji and financial services provider Indiabulls group are in the fray to develop India’s tallest residential-cum-commercial tower in Mumbai.

BL

18)The Punjab government has come out with a stimulus package to give boost to affordable housing and real estate sector in the state. A spokesman said the stimulus package included waiver of change in land use charges for industrial land use in the state and moratorium on payment of external development charges till December 31.

FE

19)Ramky Estates and Farms, a unit of the Rs 2,500-crore Ramky Group, is considering luxury triplex villas and a gated habitat in 17 acre at Kukatpally. The project will have 110 triplex villas in 240 to 380 square yards, a club house and a controlled entry. The company is focusing on developing prime residential, commercial projects and has already completed some projects across Hyderabad, Chennai, Bengaluru, Vizag and Warangal.

BS

BUSINESS PROCESS OUTSOURCING

20)Wipro is believed to be in talks with Switzerland-based bank UBS to buy its Hyderabad-based captive BPO along with its Poland centre. UBS India Service Centre (ISC) is valued around $200 million, said a person familiar with the deal.

ET

COMMUNICATIONS

21)CONTINUING its growth trajectory, the Indian telecom sector is expected to generate revenues of over $30 billion by 2013, according to global analyst firm Gartner. The country’s telecom subscriber base is expected to cross the 770-million subscriber mark by 2013. India has over 450 million telecom users at present.

ET

INFORMATION TECHNOLOGY
22)INFOSYS Technologies, India’s second largest IT services exporter, has filed a prospectus with the US Securities and Exchange Commission (SEC) for the registration of a new public issue on Nasdaq. However, Infosys clarified that it has no current plans for a fresh share offering.

ET 

INTERNATIONAL
23)Oil slipped below $71 a barrel on Thursday in volatile trade as investors weighed signs of slightly better demand against concerns over the fragility of any economic recovery. US crude fell 38 cents to $70.65 a barrel and Brent crude fell 50 cents to $70.35 a barrel.

BS

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

Karvy Consultants Ltd www.karvy.com
 www.khojhyderabad.com
 www.indiacorporateadvisor.com
 www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd www.KARVYGlobal.com
KARVY Realty (India) Limited www.karvyrealty.com
Economic Times www.economictimes.com
The Financial Express www.financialexpress.com
Business Line www.businessline.in
Business Standard www.business-standard.com
The Times of India www.timesofindia.com
The Hindu www.hindu.com
Deccan Chronicle www.deccan.com
The New Indian Express www.newindpress.com

Pivot Point (19 June 2009)

Pivot Point					19-Jun-09
SCRIP	LTP	S2	S1	Pivot Point	R1	R2
SENSEX	14265.53	13919.02	14092.28	14361.50	14534.76	14803.98
NIFTY	4251.40	4129.80	4190.60	4282.95	4343.75	4436.10
A.C.C.	756.35	696.92	726.63	777.82	807.53	858.72
ABB	710.10	628.97	669.53	718.27	758.83	807.57
AMBUJACEM	89.35	81.25	85.30	91.60	95.65	101.95
AXISBANK	733.00	675.67	704.33	727.67	756.33	779.67
BHARAT PETRO	425.75	385.92	405.83	427.92	447.83	469.92
BHARTIARTL	804.85	782.68	793.77	804.08	815.17	825.48
BHEL	2030.25	1946.08	1988.17	2043.08	2085.17	2140.08
CAIRN	227.80	214.77	221.28	230.62	237.13	246.47
CIPLA	256.80	247.73	252.27	257.73	262.27	267.73
DLF	321.55	291.58	306.57	323.73	338.72	355.88
GAIL	279.80	272.60	276.20	279.60	283.20	286.60
GRASIM	2174.75	2056.38	2115.57	2210.28	2269.47	2364.18
HCL TECHNOLO	188.85	173.95	181.40	193.20	200.65	212.45
HDFC BANK	1524.85	1474.15	1499.50	1532.10	1557.45	1590.05
HERO HONDA	1444.45	1319.62	1382.03	1423.52	1485.93	1527.42
HINDALCO	87.35	80.15	83.75	89.85	93.45	99.55
HINDUNILVR	259.75	253.05	256.40	260.95	264.30	268.85
HOUS DEV FIN	2275.70	2189.90	2232.80	2270.90	2313.80	2351.90
ICICI	703.25	669.28	686.27	710.33	727.32	751.38
IDEA	78.00	73.00	75.50	78.85	81.35	84.70
INFOSYS	1725.75	1648.12	1686.93	1724.47	1763.28	1800.82
ITC	193.35	189.85	191.60	193.80	195.55	197.75
LT	1415.75	1355.12	1385.43	1432.72	1463.03	1510.32
MAH & MAH	742.50	716.67	729.58	744.02	756.93	771.37
MARUTI	1031.75	1004.18	1017.97	1038.93	1052.72	1073.68
NATION ALUMI	354.10	338.70	346.40	357.70	365.40	376.70
NTPC	201.85	191.35	196.60	206.25	211.50	221.15
ONGC	1007.65	946.75	977.20	1026.05	1056.50	1105.35
PNB	617.20	595.07	606.13	623.07	634.13	651.07
POWERGRID	109.45	100.42	104.93	112.22	116.73	124.02
RANBAXY	270.80	255.93	263.37	272.63	280.07	289.33
RCOM	298.60	279.33	288.97	301.83	311.47	324.33
REL.CAPITAL	883.15	814.65	848.90	899.35	933.60	984.05
RELIANCE	2025.05	1946.82	1985.93	2029.22	2068.33	2111.62
RELINFRA	1199.95	1102.32	1151.13	1223.92	1272.73	1345.52
RPL	126.10	120.17	123.13	126.57	129.53	132.97
RPOWER	178.25	166.42	172.33	179.42	185.33	192.42
SIEMENS	453.80	431.97	442.88	458.42	469.33	484.87
SBI	1703.30	1627.30	1665.30	1697.00	1735.00	1766.70
SAIL	151.55	137.65	144.60	152.50	159.45	167.35
STER	588.90	551.53	570.22	596.08	614.77	640.63
SUN	1316.15	1252.78	1284.47	1306.73	1338.42	1360.68
SUZLON	100.05	87.18	93.62	104.03	110.47	120.88
TATA POWER	1178.10	1107.57	1142.83	1175.27	1210.53	1242.97
TATACOMM	468.40	452.40	460.40	471.10	479.10	489.80
TATAMOTORSEQ	329.50	311.17	320.33	328.17	337.33	345.17
TATASTEEL	388.30	354.90	371.60	396.00	412.70	437.10
TCS	376.40	359.53	367.97	380.48	388.92	401.43
UNITECH	76.10	66.27	71.18	78.32	83.23	90.37
WIPRO	376.70	354.10	365.40	378.10	389.40	402.10

Today’s Level (19 June 2009)

(Previous Close : Sensex 14266 : Nifty 4251)

Today’s Levels

Trade long if Sensex sustains above 14266 (Nifty 4251)

[Upper targets/resistances at 14385(4285)/14526(4310) or higher]

Trade short if Sensex fails to sustain above 14385 (Nifty 4285)

[Lower targets/supports at 14266(4251)/14188(4222) or lower]

Trading Tip (19 June 2009)

FOR THE DAY: The indices are expected to open on a flat note following the flattish moves in the US markets while, the Asian indices are trading mixed. Trade short in the Nifty from 4320-4350 levels with a stop loss placed at 4380 levels. Nifty has a crucial support placed at 4220 levels which if held, speculative long positions may be assumed for day trading. High caution is advised at higher levels due to the bearish implications prevailing in the markets.