Headlines (08-10-2009)

Date: 07 October 2009

Thought for the day

“Progress and growth are impossible if you always do things the way you’ve always done things.”

–Dr Wayne D Dyer


 1)Indian and Sri Lankan navies commenced a joint military training in the western seas of the island nation on Tuesday. Code named Cadex-2009, the three-day mission is aimed at exchange of ideas and experience. A group of 140 Indian Navy and Coast Guard  cadets from the Kochi-based First Training Squadron reached  Colombo on Monday on two Indian Navy war ships and a Coast Guard ship for the mission.



 2)FINANCE minister Pranab Mukherjee on Tuesday said continued stimulus to the economy is crucial for recovery as the global economic recovery appears to be unsteady and long-drawn. While speaking at the annual meeting of the World Bank and the International Monetary Fund in Istanbul, Mr Mukherjee said that balancing the stimulus  against the risks of inflation and threats to fiscal viability is a key short-term challenge.


3)With the economy showing signs of recovery, industrial output would pick up momentum with a growth of more than 7% in August and nearly 9% in October, Delhi-based economic think tank IEG said on Tuesday. “The Index for Industrial Production(IIP) has shown an impressive growth of 6.8% in July. This figure was slightly higher than the last year’s growth. It is definitely a pointer towards the revival of industrial growth,” the IEG said in its monthly monitor for the economy.



4)NTPC, the country’s largest power producer, will foray into hydro power generation from 2012 with the commissioning of its 520 Mw Tapovan Vishugad hydro power project in Uttarkhand. NTPC has put the project on fast track to complete all four generation units (130 MW each) ahead of the March 31, 2012 deadline, a senior official involved in execution of the project said.


 5)The higher growth in demand for passenger vehicles and two-wheelers over the past few months have led auto analysts believe that the  auto companies are in all probability set for a sharp revival with ro- bust earnings in the quarters to come.


6)Engineering major Larsen & Toubro on Tuesday said its building and factory construction division has received contracts worth Rs 1,513 crore during the second quarter of the financial year.



7)The rupee on Tuesday breached the psychological level of 47 to the dollar on robust dollar inflows and the greenback’s weakness against the euro. After opening strong at 47.34, the currency gained 60 paise to close at the day’s high of 46.88/89, against the previous close of 47.52.


8)Foreign banks, in spite of having the smallest share (at around 8%) in the Indian banking industry, have recorded fastest growth of assets during the last five years.



9)Short-covering in the last hour of trade helped shares erase early losses and end higher on Tuesday, with banks, metals and consumer goods stocks leading the gains. The benchmark index was in the red for most of the day as shares of the country’s two largest mobile phone operators lost more than 10 per cent each on concerns that  major tariff cuts by telecom companies could drag down average revenue per user and strain profitability. The Sensex rose 92.13 points, or 0.5 per cent, to settle at 16,958.54. It swung between 16,622.05 and 16,988.56 during the session. On the National Stock Exchange, the 50-stock S&P CNX Nifty rose 24.20 points, or 0.5 per cent, to 5,027.40.


10)TEXTILE stocks have been rising of late, as investors are looking for opportunities in sectors that appear undervalued relative to the rest of the market. The focus appears to be on companies which have expansion plans lined up. Mumbai-based Mudra Lifestyle, which is trading at a considerable discount to its book value, has risen nearly 40% over the last one month.



11)Realty firm Indiabulls Real Estate said on Tuesday its subsidiary Indiabulls Power Ltd had filed its red herring prospectus with the registrar of companies on October 1 in relation to its initial public offer(IPO).



12)Nearly a dozen equity-based fund offer documents were filed with the Securities and Exchange Board of India during September, according to the regulator’s Web site. This sudden spurt in the number of fund offers is despite the equity funds turning less attractive for distributors to sell after the scrapping of the entry load. According to the Value Research data three fund offer documents were filed with the regulator in July, four in August, while 11 of them have been  filed in September. Of these 11, two are gold-based funds.



13)GOLD rose to a record on speculation that inflation will accelerate and erode the value of the dollar, boosting the appeal of the precious metal for investors seeking to preserve their wealth. Gold futures climbed as high as $1,038 an ounce in New York, topping the previous record of $1,033.90 in March 2008. The spot price headed for a ninth straight annual gain, the longest rally since at least 1948.


14)Copper rose on Tuesday, breaching the $6,000 level as dollar weakness made the metal cheaper for non-US investors, but concerns lingered that prices could be exceeding levels justified by fundamentals. Copper for three-month’s delivery on the London Metal Exchange traded more than 2 per cent higher at $6,064.25 a tonne at 0923 GMT, from a close of $5,920 on Monday.



15)The world’s largest communications firm, the $124-billion AT&T, is poised to re-enter the booming Indian telecom market, nearly  five years after it left the country, exiting the three-way venture it had with the Tata and AV Birla groups. That venture, Idea Cellular, is the country’s fifth largest mobile operator today.


16)Consumers celebrated and investors fumed as Reliance Communications revived a price war in the mobile phone market that could end the dream-run of profits for Bharti Airtel and Vodafone Essar, and may force smaller companies to sell out in the next two years as  they run out of cash to wage the price war.


17)Bharti Airtel, the country’s largest mobile telephony service provider in terms of the subscriber base, said the company welcomed the per second billing plan suggested by the Telecom Regulatory Authority of India.



18)The spell of uncertainty on India’s $50-billion software export industry has eased with the global demand for software services stabilising. But concerns remain; though toplines are seen growing, bottomlines are expected to remain flat, largely on pricing pressures.


19)INDIAN tech vendors are set to gain from around $9.5 billion technology spend planned by the Royal Bank of Scotland(RBS) over the next five years, as up to $2 billion worth of back office and application development, maintenance projects could be outsourced to the Indian offshore suppliers including Infosys and TCS apart from the bank’s own IT captives in India.


20)CISCO, the world’s largest maker of networking equipment, and Bharti Airtel on Tuesday announced a strategic alliance to target burgeoning Indian managed services market. The alliance, which incorporates Cisco technology and Airtel network, will target their managed data services, hosted unified communications, connected branch services and Cisco Telepresence to Indian enterprises.



21)Oil prices rose more than $1 to above $71 per barrel on Tuesday, helped by a fall in the US dollar after a report Gulf Arab states were in talks to replace the greenback with a basket of currencies in oil trading. The report was swiftly denied by senior officials from leading oil producers Saudi Arabia, Russia, Kuwait and the UAE. Stronger stock markets, spurred by expectations of a faster- than-expected recovery in the US economy, also bolstered oil prices.


22)President Barack Obama is considering a mix of spending programmes and tax cuts to respond to widening job losses that would amount to an additional economic stimulus without carrying that label.



Karvy Consultants Ltd www.karvy.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

Support & Resistances for 07-10-2009

Support & Resistances for 07-10-2009
07/10/2009 Open  16879.38 5003.65 8718.50 5035.50
High 16988.56 5034.70 8847.50 5053.00
Low 16622.05 4921.05 8555.00 4927.00
Close 16958.54 5027.40 8674.30 5016.15
LTP 16958.54 5027.40 8674.30 5045.00
Range 366.51 113.65 292.50 126.00
06/10/2009 R3 17589.40 5221.68 9277.27 5250.72
R2 17222.89 5108.03 8984.77 5124.72
R1 17090.72 5067.72 8829.53 5070.43
PP 16856.38 4994.38 8692.27 4998.72
S1 16724.21 4954.07 8537.03 4944.43
S2 16489.87 4880.73 8399.77 4872.72
S3 16123.36 4767.08 8107.27 4746.72
R1/R2/R3: Resistance
PP: Pivot Point
S1/S2/S3: Supports

FOR THE DAY (07 Oct 2009)


The indices are expected to open on a positive note tracking positive global indices.

Trade long if Nifty holds 5050 levels with stop loss placed at 5030 levels targeting 5080 and 5100.

Trade speculative shorts if Nifty fails to sustain above 5030 levels, targeting lower supports.

Today’s Levels (07 Oct 2009)

(Last Close : Sensex 16959 : Nifty 5027)

Today’s Levels

Trade long if Sensex sustains above 16959 (Nifty 5027)
[Upper targets/resistances at 16988(5034)/17024(5050) or higher]

Trade short if Sensex fails to sustain above 16988 (Nifty 5034)
[Lower targets/supports at 16959(5027)/16836(4992) or lower]