Wednesday 12 October 2011
Nifty Spot Medium ,Short Term Level for 13 October 2011_Review
Indian markets snapped two day winning streak and closed on negative note as investors turned cautious ahead of Infosys 2nd quarterly results and release of industrial production data. Weak opening of European markets also led the fall in the domestic markets.
European markets opened weak after the news that European leaders pushed back a debt- crisis summit amid opposition to German Chancellor Angela Merkel's drive for deeper-than-planned writedowns of Greek bonds. Sell-off mainly came in the IT stocks as investors sold IT stocks ahead of Infosys results slated tomorrow. Analyst community believes that the company will cut the guidance for FY12 and therefore Infosys investors closed 3.2% down ahead of the results to factor in the fears. Wipro and TCS also slid with Infosys by 2% and 2.3%, respectively. Telecoms stocks rallied after a new draft policy unveiled by the government was seen broadly positive for the oncebooming sector that has struggled in recent years due to ferocious competition and 2G scam. Other than IT stocks, selling pressure was also seen in oil & gas and FMCG stocks. Private-sector lender Dhanlaxmi Bank closed down 9.65%. The stock had slumped 24% at one stage after an industry union alleged irregularities in its accounts, and came off lows after the bank denied the charges.
Market breadth was however strong at ~1.26x as investors bought large cap stocks. Both FIIs and domestic institutions bought equities worth Rs.1.14bn and Rs.1.08bn, respectively.
Asian equity markets traded lower Wednesday, following disappointing results from US aluminum giant Alcoa and after Slovakia failed to approve an expansion of Europe’s giant financial bailout fund. Both the Hang seng and the Nikkei are down today.
We expect a weak opening for the Indian markets following the cues from the Asian markets. Further, investors may remain cautious ahead of the IIP data today. Investors will also take some cues from Infosys results in the morning.
Economic and Corporate Developments:
The government will consider permitting sugar exports for the current marketing year, which started this month, only after the Diwali festival.The RBI announced 2% interest subsidy on Rupee export credit to the labour-oriented and small scale sectors to cushion them from slowdown in the major markets like the US and Europe.
Buzzing Stocks
DLF is looking to raise up to Rs.2,500Cr by selling its stake in luxury hospitality chain Aman resorts and the deal is likely to be closed by December-end.
The government will infuse Rs.3,000-4,500Cr in the State Bank of India (SBI) by the March end to help the lender achieve 8% capital adequacy norm.
NTPC may appoint Deloitte as a consultant on revamping its operations and human resources development.
Tata Power today said it had installed more than 300 MW wind power capacity, spread across four states, including Gujarat and Karnataka.
US markets
US markets ended mixed in a low-volume session, with investors uncertain over earnings season and Slovakia’s vote on the euro zone’s bailout fund. The Dow Jones Industrial Average finished the day 16.88 points, or 0.2%, lower at 11,416.30. The S&P 500 Index inched up 0.65 point, or 0.1%, to 1,195.54. The Nasdaq Composite Index climbed 16.98 points, or 0.7%, to 2,583.03.
Nift Levels:
Nifty Spot Medium Term Level for 13 October 2011 | |||
| Support 1 | 4931 | Resistance 1 | 5158 |
| Support 2 | 1861 | Resistance 2 | 5342 |
Nifty Spot Medium Term Level for 13 October 2011 | |||
| Support 1 | 4974 | Resistance 1 | 5094 |
| Support 2 | 4932 | Resistance 2 | 5044 |
Market breadth was however strong at ~1.26x as investors bought large cap stocks. Both FIIs and domestic institutions bought equities worth Rs.1.14bn and Rs.1.08bn, respectively.
Asian equity markets traded lower Wednesday, following disappointing results from US aluminum giant Alcoa and after Slovakia failed to approve an expansion of Europe’s giant financial bailout fund. Both the Hang seng and the Nikkei are down today.
We expect a weak opening for the Indian markets following the cues from the Asian markets. Further, investors may remain cautious ahead of the IIP data today. Investors will also take some cues from Infosys results in the morning.
Economic and Corporate Developments:
The government will consider permitting sugar exports for the current marketing year, which started this month, only after the Diwali festival.The RBI announced 2% interest subsidy on Rupee export credit to the labour-oriented and small scale sectors to cushion them from slowdown in the major markets like the US and Europe.
Buzzing Stocks
DLF is looking to raise up to Rs.2,500Cr by selling its stake in luxury hospitality chain Aman resorts and the deal is likely to be closed by December-end.
The government will infuse Rs.3,000-4,500Cr in the State Bank of India (SBI) by the March end to help the lender achieve 8% capital adequacy norm.
NTPC may appoint Deloitte as a consultant on revamping its operations and human resources development.
Tata Power today said it had installed more than 300 MW wind power capacity, spread across four states, including Gujarat and Karnataka.
US markets
US markets ended mixed in a low-volume session, with investors uncertain over earnings season and Slovakia’s vote on the euro zone’s bailout fund. The Dow Jones Industrial Average finished the day 16.88 points, or 0.2%, lower at 11,416.30. The S&P 500 Index inched up 0.65 point, or 0.1%, to 1,195.54. The Nasdaq Composite Index climbed 16.98 points, or 0.7%, to 2,583.03.
