-Daily Morning Outlook- June 15, 2012 MORNING BELL INDIAN INDICES Markets at a Glance Index 14/06/12 Pt Chg % Chg The Indian equity market is likely to open higher today tracking positive Asian markets. The BSE SENSEX 16,678 (203) (1.2) shares of oil marketing firms may remain in focus amid expectation of a cut petrol prices by NSE NIFTY 5,055 (67) (1.3) up to `2 per litre on Friday due to falling international crude prices. However, the Asian mar- BSE MIDCAP 5,925 (76) (1.3) kets gained strength today amid reports that the major central banks stand ready to take co- ordinated action to ensure liquidity in the financial markets if the weekend's Greece’s elec- BSE SMALLCAP 6,322 (43) (0.7) tion results in turmoil, thus outweighing spiraling concern about Europe’s debt crisis. Mean- CNX MIDCAP 6,977 (100) (1.4) while, the investors are keeping a close eye over the Bank of Japan's rate decision later in the BANK NIFTY 9,837 (291) (2.9) day. The central bank is expected to keep the rates unchanged. In SGX Nifty, Jun’12 contract last traded at 5,075, up by 24.00 points from previous settlement. IT 5,702 19 0.3 Wall Street Update TECk 3,303 4 0.1 On Thursday, the US market ended with strong gains driven by reports that the central banks BANKEX 11,339 (328) (2.8) were planning coordinated action to ensure liquidity if required, after the weekend's Greek REALTY 1,594 (48) (2.9) elections. The trade remained choppy in the early going, following the disappointing weekly initial jobless claims count and renewed weakness among Europe’s major bourses in the wake of another downgrade of Spain's debt. However, the buyers began to step in with a bid in the GLOBAL INDICES late afternoon trade that helped the Dow and S&P 500 to clock more than 1% gain. Mean- Index 14/06/12 Pt Chg % Chg while, US initial jobless claims rose by 6,000 to 386,000 last week, exceeding the analysts ex- pectation of 375,000. Dow Jones 12,652 156 1.2 Previous Day Roundup (Domestic) NASDAQ 2,836 18 0.6 On Thursday, Indian benchmark indices succumbed to selling pressure and tanked more FTSE 100 5,467 (17) (0.3) than 1%, as sharp rise in May inflation to 7.55% as against 7.23% in previous month, dent- ed hopes of further monetary easing from the Reserve Bank of India (RBI) early next DAX 6,139 (14) (0.2) week. The market had a week start driven by negative trends from global markets as Moody’s downgrade of Spain’s sovereign-debt rating by three notches. Index* 15/06/12 Pt Chg % Chg On stock specific, Infosys gained 1.1% after it has signed a Memorandum of Understand- ing (MoU) with The State of Israel. Zicom Electronic Security Systems surged 1.2% after Nikkei 225 8,592 23 0.3 the company along with its Singapore-based subsidiary, completed management control Hang Seng 19,010 202 1.1 in Phoenix International WLL Qatar. Meanwhile, HDFC plummeted 1.6% after Macquarie downgraded the stock to underperform from outperform. Shanghai 2,310 14 0.6 SGX Nifty 5,075 24 0.5 Derivative Strategy for June 15, 2012 Scrip CMP Recommendation Target Stop Loss * live intraday prices at 8:15am IST NIFTY 5,054 BUY 5,130 5,010 CAIRN 321 BUY 330 318 Net Inflows in Equity ABAN 327 BUY 340 322 ` crore Buy Sell Net YTD PIRHEALTH 472 BUY 483 468 FII (June 14) 1,869 1,597 272 41,946 CIPLA 307 BUY 315 304 MF (June 12) 447 451 (4) (5,662) Today’s Event FII participation in Derivatives Quarterly Results - Koutons Retail, Oxford Industries, GSB Finance, Steelco Gujarat Buy Sell Net Bank of Japan’s Interest Rate Decision Index Futures 2,029 952 1,077 UK’s Goods Trade Balance for the month of April Index Options 15,375 15,637 (262) US’s Industrial Production for the month of May Stock Futures 1,074 1,125 (50) US’s Reuters/Michigan Consumer Sentiment Index for the month of June Stock Options 1,248 1,256 (8) Source: Dion Global Solutions Ltd Technical Overview Nifty closed down 66.70 points (-1.30%) at 5,054.75, as India's wholesale price index (WPI) rose 7.55% in May from a year earlier, diminished hopes of further mone- tary easing coupled with weak European cues. Nifty made a big bearish candle on daily basis, closing below its 50 Day SMA (5,090) and its 200 Day SMA (5,070) suggesting that market facing stiff resistance around 5150-5160 levels. Further, selling will intensify below day low 5,048 for the target of 5,000 levels and below 5,000 market can test 4,950. Trading strategy would be to Sell if market resist at 5,100 and Buy if support at 5,020. First resistance for the Nifty is 5,107 and next resistance 5,160 and first support for the Nifty is 5,025 and next support at 4,996. Support & Resistance Sensex Gainers & Losers Nifty Gainers & Losers Gainers 14/06/12 Pt Chg % Chg Gainers 14/06/12 Pt Chg % Chg Indices S2 S1 LTP R1 R2 Infosys 2,498 27.0 1.1 Infosys 2,499 28.4 1.2 Nifty 4,996 5,025 5,055 5,107 5,160 Cipla 306 1.8 0.6 ACC 1,190 9.8 0.8 ITC 244 0.7 0.3 Cipla 306 2.5 0.8 Sensex 16,490 16,584 16,678 16,847 16,931 Sterlite 102 0.2 0.2 Sesa Goa 189 1.5 0.8 Bank Nifty 9,684 9,735 9,837 9,967 10,018 - - - - Cairn 324 2.4 0.8 Stocks S2 S1 LTP R1 R2 Losers 14/06/12 Pt Chg % Chg Losers 14/06/12 Pt Chg % Chg RIL 706 711 716 721 726 Tata Motors 227 (10.9) (4.6) PNB 768 (46.4) (5.7) SBI 2,104 2,129 2,154 2,199 2,244 L&T 1,297 (52.9) (3.9) Tata Motors 227 (10.6) (4.5) ITC 239 242 244 248 251 IDFC 128 (5.8) (4.3) NTPC 148 (5.8) (3.8) Infosys 2,439 2,469 2,498 2,519 2,540 L&T 1,295 (54.9) (4.1) ICICI Bank 819 (29.7) (3.5) L&T 1,253 1,275 1,297 1,334 1,371 SBI 2,154 (68.0) (3.1) NTPC 148 (6.0) (3.9) Source: Dion Global Solutions Ltd CRUDE & BULLION Commodity 14/06/12 Pt Chg % Chg Crude (`) (Jun) 4,663 26 0.6 Gold (`) (Aug) 30,113 77 0.3 Silver (`) (Jul) 54,441 (574) (1.0) Copper (`) (Jun) 413 3 0.7 Corporate, Industry And Economy (CIE) News At Glance Corporate News BSE Code LTP (`) Event IT bellwether Infosys has signed a Memorandum of Understanding (MoU) with The State of Israel, to establish and enhance co- operation in industrial research and development in areas of cloud, information security, sensors, analytics, and sustainability. 500209 2,498.20 This MoU is a part of the 'Global Enterprise Collaboration Program' developed by the Office of the Chief Scientist of Israel to ac- celerate innovation through a global ecosystem. Zicom Electronic Security Systems along with its Singapore-based subsidiary, Unisafe Fire Protection Specialists Singapore Pte Ltd. has acquired 49% stake and complete management control in Phoenix International WLL Qatar. This will help Zicom to ex- 531404 43.25 pand its footprints in Gulf Co-operation Council countries to provide fire protection and prevention products and services in Mid- dle East regions. Alstom T&D India has bagged orders worth `225 crore from Power Grid Corporation of India. The order worth `75 crore is for 522275 180.50 supply, testing, erection and commissioning of 765 kV auto transformers for its Ranchi based substation and another contract worth `150 crore for similar transformers at its Dharamjaygarh and Aurangabad substations. National Thermal Power Corporation Ltd has stated that the total capacity of the group crossed 39,000 MW with the commis- 532555 148.40 sioning of 500 MW producing unit at Vindhyachal plant in Madhya Pradesh. Industry News With the international oil prices slipping to USD 95.75 a barrel, the lowest in more than a year—the chances have increased that oil companies may announce another cut in petrol prices, as stated by a government official who also added that the development would be a relief for the subsidized economy of India. With the rationed consumption of fuel becoming a necessity in today’s scenario, Bureau of Energy Efficiency (BEE) stated that in 2013, consumers would be able to choose cars based on their fuel-saving capacity. Following the intentions, BEE is making efforts to keep the car price in accordance to the efficiency rating. The move intends to reduce fuel consumption, save carbon emissions and make car travel more economical. Therefore, the car labelling programme will force the car manufacturer to continuously reduce the average fuel consumption of cars sold by them over the next 10 years. Economy News The much-awaited Wholesale Price Index inflation for the month of May has come at 7.55%, higher than April’s 7.23%, due to a sharp jump in prices across the board-from food to fuel and manufacturing products. The prices of food articles grew 10.74% in the month of May as against 10.49% growth during the previ- ous month. Primary articles and Fuel & Power which make up for almost a half of the WPI, has kept the inflation number stubbornly high during the month. Hit by the slowdown in Europe and fragile global economic condition, India’s exports in May declined by 4.16% at USD 25.7 billion. However, the imports dipped by 7.36% to USD 41.9 billion, resulting in a trade deficit of USD 16.3 billion for the month. The exports in April rose slightly at USD 13.9 billion after a contraction in March by 5.7% to USD 28.7 billion. Source: Dion Global Solutions Ltd Corporate Actions Record Dates Company name BSE Code Purpose Current week Forthcoming week India Nippon Electricals 532240 Interim Dividend 12/06/2012 Gabriel India 505714 Interim Dividend 12/06/2012 Alpha Graphic India 531720 Split 14/06/2012 Resurgere Mines & Minerals India 533017 Split 15/06/2012 Ex Dividend Date Company Name BSE Code CMP Current Week Forthcoming week ITC 500875 244.30 11/06/2012 Birla Corporation 500335 241.00 13/06/2012 Axis Bank 532215 1,012.35 14/06/2012 Bank of Baroda 532134 695.25 14/06/2012 Canara Bank 532483 413.10 14/06/2012 SML Isuzu 505192 401.00 15/06/2012 ASM Technologies 526433 65.60 18/06/2012 NIIT 500304 42.65 20/06/2012 Shriram Transport Finance Company 511218 522.95 21/06/2012 Housing Development Finance Corporation 500010 644.60 22/06/2012 Ex Split Company Name BSE Code Current Week Forthcoming Week CMP Ratio Date CMP Ratio Date Alpha Graphic India 531720 18.75 2:1 13/06/2012 Resurgere Mines & Minerals India 533017 0.20 1:10 14/06/2012 KCCL Plastic 526067 79.45 5:1 18/06/2012 Ex Bonus Company Name BSE Code Current Week Forthcoming Week CMP Ratio Date CMP Ratio Date - - - - - - - Forthcoming Results Company BSE Code Date CMP Liberty Phosphate 530273 16/06/2012 92.45 Hitech Plast 526217 18/06/2012 54.05 Source: Dion Global Solutions Ltd Alankit Assignments Limited. 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"Alankit Daily Morning Outlook 15 June 2012"