Support & Resistances for 07-07-2009

Support & Resistances for 07-07-2009
 
    SENSEX NIFTY FUTURE (July2009)
    BANKNIFTY NIFTY
06-06-2009 Open  14962.12 4429.60 7516.00 4427.00
High 15097.87 4479.80 7695.00 4482.80
Low 13959.44 4133.70 6805.00 4121.10
Close 14043.40 4165.70 6905.35 4154.00
LTP 14043.40 4165.70 6932.50 4156.00
Range 1138.43 346.10 890.00 361.70
07-07-2009 R3 16643.76 4951.93 8915.12 4976.03
R2 15505.33 4605.83 8025.12 4614.33
R1 14774.37 4385.77 7465.23 4384.17
PP 14366.90 4259.73 7135.12 4252.63
S1 13635.94 4039.67 6575.23 4022.47
S2 13228.47 3913.63 6245.12 3890.93
S3 12090.04 3567.53 5355.12 3529.23
 
R1/R2/R3: Resistance
PP: Pivot Point
S1/S2/S3: Supports

Headlines (06 July 2009)

Date: 06 July 2009

Thought for the day

“The most successful businessman is the man who holds onto the old just as long as it is good and grabs the new just as soon as it is better.”

-Robert P Vanderpoel

GENERAL

1)Increased spending on infrastructure to combat the ongoing slowdown and spur economic growth, a road map for public sector equity disinvestment and financial sector reforms over the next five years, assured supply of cereals at higher subsidised rates to BPL households, specific incentives for the export-hit sectors and a marginal revamp of the taxation regime along with a moderate hike in the tax exemption limit for the salaried class are expected to be some of the main features of the Union budget for 2009-10.

ECONOMY

2)The Budget to be presented by finance minister Pranab Mukherjee is likely to propose substantially higher Plan spending of Rs 40,000 crore, bringing the total Central government support to the Plan spending of the Centre and the states to Rs 3,25,000 crore, or 5.45% of the forecast GDP of 2009-10. This boost to Plan spending would represent the Centre’s commitment to both sustaining the fiscal stimulus and the ruling coalition’s political commitment to inclusive growth.

ET

CORPORATE / INDUSTRY

3)Chennai Petroleum Corporation Ltd, (CPCL),a subsidiary of Indian Oil Corporation (IOC), is planning to invest over Rs 7,000 crore in the next five years on its expansion plan and on connectivity projects. It is also planning to acquire 400 acres at the outskirts of Chennai as part of its refinery expansion.

BS

MONEY / BANKING

4)Indian Overseas Bank expects to grow by 20 per cent during the current financial year to surpass a total business volume of Rs 2 lakh crore, provided the monsoons are on time and are adequate. To a shareholders’ query on the bank’s growth expectations in 2009-10, during the 9th Annual General Meeting, Mr S.A. Bhat, Chairman and Managing Director, said that the bank would be growing by 20 per cent both in deposits and advances. However, if the monsoons are below the expected level, which would affect the economy’s growth, the bank’s business growth may also be impacted, he said.

INSURANCE

5)THE global financial crisis has worked in favour of the General Insurance Corporation (GIC Re), India’s national reinsurance company. With the capacities of global reinsurance giants shrinking, the national reinsurers has been writing huge blocks of reinsurance from overseas and increasing its share of international business.

ET

6)UK-based insurance firm Aviva said on Sunday it is keen on raising FDI to 49% in the Indian venture subject to policy liberation. Aviva India is 74:26 joint venture with FMCG major Dabur and UK-based Aviva.

ET

MARKETS

7)STOCK market players are waiting for cues from the Union Budget on Monday, which will be seen as the government’s blueprint for reviving growth in the backdrop of an ailing global economy. Among other things, investors expect finance minister Pranab Mukherjee to announce a roadmap for selling stakes in state-owned companies. Traders have cut down their positions in the run-up to the budget, while institutional investors too have been lying low over the last one week. On the advice of their brokers, retail investors have been avoiding directional bets on the market. The more experienced traders have been using trading combinations in equity options(long on one stock and short on another) so as to minimise losses in the
 event of a big move. On Friday, the BSE’s 30-share Sensex closed at 14,913, up 254.56 points or 1.7% over the previous close, and National Stock Exchange’s 50-share Nifty closed at 4424, up 75.40 points, over the previous close. Market watchers say there has been no massive build-up of long positions(in the futures segment), and hence there is unlikely to be a sharp fall even if the Budget disappoints.

ET

8)The country’s top-10 firms added Rs 32,000 crore to their market capitalistion last week, with public sector oil firm Oil and Natural Gas Corp(ONGC) contributing the major chunk. ONGC added Rs 20,052 crore to its market-cap, taking the total valuation to Rs 2,42,687 crore during the week ending July 3. Shares of the company surged 9% to settle at Rs 1,134.65 on the BSE at the end of Friday’s trade.

ET

9)DOMESTIC institutional investors seem to be prepared for any money-making opportunity that the budget may open up on Monday. Over the last few weeks, investment managers have realigned their portfolios, increasing weightage to sectors that could receive budgetary sops or benefit from increased spending.

ET

10)Financial services major India Infoline Group has entered into a strategic tie-up with Interactive Brokers LLC of the US,with a view to provide its clients direct access to 80 global exchanges spanning 18 countries. “Interactive is one of the largest broker dealers in the US. We were looking for a strong partner with a platform through which our clients could access global exchanges and interactive fitted our bill perfectly,” India Infoline private wealth CEO Karan Bhagat said.

ET

MUTUAL FUNDS

11)Crisil has assigned AAA(so) rating to Birla Sun Life Mutual Fund’s Capital Protection Oriented Fund Series 1,2 and 3, according to a press release from the rating agency. Birla
 Sun Life Asset Management Company Ltd(BSLAMCL) is the investment manager for the mutual fund company. The rating indicates the highest degree of certainty regarding timely pay-
 ment of the face value of the units on maturity, the release states.

BL

COMMODITIES

12)CRUDE oil futures on the Multi Commodity Exchange continued to rule weak on the week ended on Friday on continued selling pressure in the domestic market following weak sentiment in the global markets as sharp fall in non-farm payrolls in June raised concerns and boosted rally in dollar. The US labor department said employers cut 4.67 lakh jobs in the last week of June. Similarly, silver futures fell further last week on lack of follow-up support from market players and prices fell nearly 5%. Gold futures remained steady on Friday on stray buying
 support.

FE

13)The week witnessed a sharp decline in the pepper futures market on bearish operations and entry of imported pepper in the domestic market. The current scenario is likely to continue till the new crop position of Indonesia becomes known.

REAL ESTATE

14)FOLLOWING new rate cuts in a highly competitive home loan market,real estate developers feel time has finally arrived to offload their projects, transform residentail property demand into actual purchase decision by home seekers, generate capital for the new projects and thereby keep the market fluid.

FE

15)Mumbai-based realty firm Lodha group is in talks with three private equity players to raise $180 million (around Rs 850 crore) for its three projects, a senior company executive said. “We are in active negotiations with private equity funds for three projects and are looking at an average deal size of $60 million for each project,” Lodha group director Abhisheck Lodha said, adding any of these potential deals may take more than a month to be closed.

ET

COMMUNICATIONS

16)WHILE operators are getting ready for the upcoming 3G auctions, international and Indian handset manufacturers are planning to increase their 3G-enabled phone offerings in India, or to tie up with existing 3G providers. 3G is a faster and enhanced mobile communications technology which provides broadband like experience on mobile phones and enables users to experience the power of internet on the move.

FE

BUSINESS PROCESS OUTSOURCING

17)HCL BPO, the business process outsourcing arm(BPO) of HCL Technologies, the NEW-Delhi based information technology services provider, shortly plans to offer remote technical support services to the global small office-home office(Soho) market, whose current size is estimated anywhere between Rs 960 and Rs 1,440 crore.

BS

INFORMATION TECHNOLOGY

18)REVENUES of major IT firms are expected to be hit by up to 7% in rupee terms in the April-June period as appreciation in the rupee against the dollar during the quarter would impact negatively the margins compared to the previous quarter, says a report.

FE

19)A MAJORITY of the large and medium size IT entities in the US expect better business performance in the second half of 2009, while many plan to hire staff in the coming months. About 61% of the large businesses and 60% of medium enterprises surveyed anticipate better company performance in the second half of this year says a report by technology solution provider CDW Corporation.

FE

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 (06 July 2009)

Pivot Point   06 July 2009
SCRIP LTP S2 S1 Pivot Point R1 R2
SENSEX 14913.05 14340.1 14626.58 14786.21 15072.69 15232.32
NIFTY 4424.25 4250.38 4337.32 4385.88 4472.82 4521.38
A.C.C. 768.7 740.9 754.8 763.9 777.8 786.9
ABB LTD. 784.7 738.03 761.37 774.68 798.02 811.33
AMBUJACEM 91.15 85.98 88.57 90.28 92.87 94.58
AXISBANK 873.35 823.65 848.5 862.25 887.1 900.85
BHARAT PETRO 459.9 447.23 453.57 459.18 465.52 471.13
BHARTIARTL 819.05 786.98 803.02 812.93 828.97 838.88
BHEL 2186.3 2079.13 2132.72 2164.58 2218.17 2250.03
CAIRN 228.9 223.23 226.07 229.03 231.87 234.83
CIPLA 260.75 235.92 248.33 255.57 267.98 275.22
DLF 337.1 321.5 329.3 334.4 342.2 347.3
GAIL 316.85 294.78 305.82 312.18 323.22 329.58
GRASIM IND. 2406.5 2329.5 2368 2396.5 2435 2463.5
HCL TECHNOLO 191.35 184.45 187.9 190.95 194.4 197.45
HDFC BANK 1515.75 1465.92 1490.83 1507.92 1532.83 1549.92
HERO HONDA 1370.1 1346.03 1358.07 1370.03 1382.07 1394.03
HINDALCO 83.8 81.97 82.88 83.92 84.83 85.87
HINDUNILVR 273.15 264.75 268.95 271.7 275.9 278.65
HOUS DEV FIN 2586.3 2287.7 2437 2516 2665.3 2744.3
ICICI BANK 754.95 699.98 727.47 743.73 771.22 787.48
IDEA 74.4 71.53 72.97 74.03 75.47 76.53
INFOSYS TECH 1805.15 1721.25 1763.2 1789.6 1831.55 1857.95
ITC 191.7 187.37 189.53 191.32 193.48 195.27
LT EQ 1607.55 1509.18 1558.37 1589.18 1638.37 1669.18
MAH & MAH 738.7 683.57 711.13 729.57 757.13 775.57
MARUTI 1058.75 1028.52 1043.63 1055.27 1070.38 1082.02
NATION ALUMI 298.85 290.75 294.8 298.7 302.75 306.65
NTPC EQ 204.4 194.93 199.67 203.03 207.77 211.13
ONGC CORP. 1136.15 1072.58 1104.37 1122.63 1154.42 1172.68
PNB 694.45 631.95 663.2 681.4 712.65 730.85
POWERGRID 112.95 104.82 108.88 111.32 115.38 117.82
RANBAXY LAB. 251.55 234.25 242.9 248.75 257.4 263.25
RCOM 292.55 275.05 283.8 289.75 298.5 304.45
REL.CAPITAL 938.3 901.43 919.87 933.43 951.87 965.43
RELIANCE 2027.65 1959.15 1993.4 2014.25 2048.5 2069.35
RELINFRA 1291.85 1172.95 1232.4 1266.1 1325.55 1359.25
RPL 126.05 121.88 123.97 125.43 127.52 128.98
RPOWER 176.75 169.05 172.9 175.35 179.2 181.65
SIEMENS 489.8 432.33 461.07 509.23 537.97 586.13
STATE BANK 1809.65 1696.55 1753.1 1787.55 1844.1 1878.55
STEEL AUTHOR 161.65 152.95 157.3 160.6 164.95 168.25
STER EQ 630.4 597.5 613.95 624.45 640.9 651.4
SUN PHARMA. 1151.65 1107.68 1129.67 1152.08 1174.07 1196.48
SUZLON 106.85 99.62 103.23 105.62 109.23 111.62
TATA POWER 1187.1 1136.7 1161.9 1181.45 1206.65 1226.2
TATACOMM 482.9 460.97 471.93 478.97 489.93 496.97
TATAMOTORSEQ 300.8 281.73 291.27 297.53 307.07 313.33
TATASTEEL 437.95 385.32 411.63 427.32 453.63 469.32
TCS EQ 390.95 382.05 386.5 389.45 393.9 396.85
UNITECH LTD 83.8 78.6 81.2 82.8 85.4 87
WIPRO 385.35 372.05 378.7 382.85 389.5 393.65

For The Day (06 July 2009)

FOR THE DAY: Domestic markets are likely to open on flat-to-negative note following the weak Asian indices.

Traders are advised to stay long above 4450 else from lower supports of 4380 levels with a final stop loss placed below the 4350 levels.

Fresh speculative shorts would be advised if the Nifty fails to break past 4520 levels targeting lower supports.

Investors are advised to remain cautious and play levels specific due to the event which will set the trend for another 12-15% directional movement in the near term on either direction.

Support & Resistances for 06-07-2009

Support & Resistances for 06-07-2009
 
    SENSEX NIFTY FUTURE (July2009)
    BANKNIFTY NIFTY
03-06-2009 Open  14552.72 4347.30 7350.40 4315.00
High 14945.85 4434.45 7590.00 4436.40
Low 14499.74 4298.95 7300.50 4305.10
Close 14913.05 4424.25 7563.75 4424.65
LTP 14909.65 4422.75 7553.00 4419.95
Range 446.11 135.50 289.50 131.30
06-07-2009 R3 15678.43 4656.88 8063.75 4651.32
R2 15232.32 4521.38 7774.25 4520.02
R1 15072.69 4472.82 7669.00 4472.33
PP 14786.21 4385.88 7484.75 4388.72
S1 14626.58 4337.32 7379.50 4341.03
S2 14340.10 4250.38 7195.25 4257.42
S3 13893.99 4114.88 6905.75 4126.12
 
R1/R2/R3: Resistance
PP: Pivot Point
S1/S2/S3: Supports