Alankit Daily Morning Outlook 09 July 2012

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Alankit Daily Morning Outlook 09 July 2012 Powered By Docstoc
					          -Daily Morning Outlook-

July 09, 2012
 MORNING BELL                                                                                        INDIAN INDICES
                                                                                                    Index                  06/07/12            Pt Chg     % Chg
Markets at a Glance                                                                                 BSE SENSEX                17,521             (18)       (0.1)
Indian indices are likely to open lower today, largely mirroring weak Asian markets. The inves-     NSE NIFTY                   5,317            (10)       (0.2)
tors will keep a close eye over the release of May IIP and June headline inflation numbers later
                                                                                                    BSE MIDCAP                  6,314            (35)       (0.6)
this week. Meanwhile Asian shares continue their losing streak for the third straight session as
disappointing US jobs report released on Friday dampened sentiments and heightened worries          BSE SMALLCAP                6,823            (14)       (0.2)
about slowing global economic growth. Further, signs of slowdown in the Japanese economy            CNX MIDCAP                  7,513            (50)       (0.6)
also undermined sentiments after data released this morning showed that a smaller-than-             BANK NIFTY                10,655              13         0.1
expected current-account surplus and a surprisingly sharp drop in core machinery orders. The
                                                                                                    FMCG                        4,910             33         0.7
SGX Nifty, Jul’12 contract last traded at 5,316, down by 19.00 points from previous session.
Wall Street Update                                                                                  BANKEX                    12,265              22         0.2
The US market ended sharply lower on Friday as disappointing US jobs data undermined senti-         METAL                     11,002            (121)       (1.1)
ments. The June nonfarm payrolls rose 80K as against the consensus estimate of 100k by              REALTY                      1,745            (21)       (1.2)
Briefing.com. However, the unemployment rate came in at 8.2% as compared to the estimate
of 8.2% by Briefing.com. Technology was the worst performing sector, down 1.5% vs. the              GLOBAL INDICES
broad market decline of 0.9%, on increased worries about the health of the global economy.          Index                  06/07/12            Pt Chg     % Chg
Further, the commodities stocks succumbed to selling pressure on indications that the US
economy is shifting downwards. The soft reading on US jobs came on the heels of similarly dis-      Dow Jones                12,773             (124)       (1.0)
appointing reports on the US manufacturing and services sectors released earlier this week.
                                                                                                    NASDAQ                      2,937            (39)       (1.3)
Previous Day Roundup (Domestic)
 Indian benchmark indices snapped a three day gaining streak and ended modestly lower as           FTSE 100                    5,663            (30)       (0.5)
     investors opted to book some profits after recent gains and looked for fresh triggers to ex-   DAX                         6,410           (126)       (1.9)
     tend the prior sessions advances.
 On sectorial front, barring the FMCG and Bankex index, rest all the sectoral indices ended
                                                                                                    Index*                 09/07/12            Pt Chg     % Chg
     in negative, with the Realty, Metal, Consumer Durables and Capital Goods indices were the
     top laggards down by more than 1%.                                                             Nikkei 225                  8,945            (76)       (0.8)
 The BSE Sensex closed at 17,521 down by 18 points or by 0.1% and NSE Nifty closed at              Hang Seng                19,646             (155)       (0.8)
     5,317 down by 10 points or 0.2%.
                                                                                                    Shanghai                    2,211            (12)       (0.6)
 Indian rupee weakened for the third straight session against the US dollar on weaker global
     risk asset. However, surprise RBI’s invention capped the downside.                             SGX Nifty                   5,316            (19)       (0.4)

 Derivative Strategy for July 09, 2012                                                              * live intraday prices at 8:15am IST
 Scrip                             CMP             Recommendation        Target       Stop Loss
 NIFTY                            5,327                      SELL         5,250           5,360
                                                                                                    Net Inflows in Equity
 MARUTI                           1,221                      SELL         1,200           1,231     ` crore               Buy           Sell       Net      YTD
 DLF                                211                      SELL           204             215     FII (July 06)      2, 672         2,215        456     9,355
 HDFC                               685                      BUY            700             676
 IOC                                271                      BUY            280             267     MF (July 05)          445           507        (62)   (6,614)

Today’s Event                                                                                       FII participation in Derivatives
     China’s Consumer Price Index for the month of June                                                                        Buy              Sell         Net
     Japan’s Current Eco Watchers Survey for the month of June                                     Index Futures              938               814           124
     Germany’s Trade Balance data for the month of May                                             Index Options            7,613             7,444           169
     Eurozone’s Sentix Investor Confidence for the month of July                                   Stock Futures              963             1,318         (355)
     US’s Consumer Credit Change for the month of May                                              Stock Options               597              645          (47)


    Source: Dion Global Solutions Ltd
Technical Overview




Indian indices closed the late trading session of the week with marginal losses as Nifty closed down 10.35 points (0.19%) at 5,316.95, despite rate
cut by China and European central bank, as traders seems cautious ahead earning session.

Nifty made small bearish candle with lower shadow but no or little upper shadow suggest that 5,340 is a major resistance for the market, while
traders are supporting market by buying on every dip. Trader should remain cautious as consolidation near resistance zone could lead to profit
booking. However, market will gain further strength above its immediate resistance 5,340 if fails to do so it will attract more profit booking tar-
geting 5,220 -5,200. Trading strategy would be to Sell if market resist at 5,400 and Buy if support at 5,320.

First resistance for the Nifty is 5,344 and next resistance 5,362 and first support for the Nifty is 5,299 and next support at 5,272




             Support & Resistance                                     Sensex Gainers & Losers                          Nifty Gainers & Losers
                                                            Gainers         06/07/12   Pt Chg    % Chg    Gainers            06/07/12    Pt Chg   % Chg
Indices          S2      S1     LTP        R1        R2
                                                           ICICI Bank           935     14.3       1.6    ICICI Bank             936       15.2      1.7
Nifty         5,272   5,299   5,317 5,344         5,362    HDFC                 684       8.6      1.3    M&M                    732       10.2      1.4
                                                           M&M                  731       8.4      1.2    Hind Uniliver          446        5.1      1.2
Sensex       17,370 17,446 17,521 17,575 17,630
                                                           Hind Uniliver        445       5.1      1.2    HDFC                   684        7.3      1.1
Bank Nifty   10,489 10,572 10,655 10713 10,771             Cipla                328       3.5      1.1    Cipla                  328        3.4      1.1


Stocks           S2      S1         LTP     R1       R2    Losers           06/07/12   Pt Chg    % Chg    Losers            06/07/12    Pt Chg    % Chg
RIL             725     730         734    739       744   Jindal Steel          455   (14.9)     (3.2)   Jindal Steel           454    (16.3)     (3.5)
                                                                                                          Sesa Goa               198     (4.1)     (2.0)
SBI           2,190   2,204    2,218      2,234    2,250   Sterlite Inds         108     (2.2)    (2.0)
                                                                                                          Maruti               1,216    (24.4)     (2.0)
ITC             247     250         253    255       256   Tata Power            103     (2.1)    (2.0)
Infosys       2,407   2,426    2,444      2,476    2,507   Maruti Suzuki       1,217   (24.0)     (1.9)   Asian Paint          3,710    (71.3)     (1.9)
L&T           1,381   1,393    1,406      1,422    1,439   Hero MotoCop        2,085   (37.0)     (1.7)   Sterlite Inds          108     (1.9)     (1.7)


Source: Dion Global Solutions Ltd
CRUDE & BULLION
Commodity                                                                07/07/12                                  Pt Chg                                   % Chg
Crude (`) (Jul)                                                             4,732                                     (15)                                   (0.3)
Gold (`) (Aug)                                                             29,621                                       27                                     0.1
Silver (`) (Sep)                                                           53,167                                     106                                      0.2
Copper (`) (Aug)                                                              425                                        0                                     0.1


                                      Corporate, Industry And Economy (CIE) News At Glance
Corporate News
BSE Code           LTP (`)    Event

                               Bharat Electronics is planning to establish a joint venture company with Thales Air Systems of France. The venture- Thales India
500049               1356.7
                                Private in radar business area is subject to approval from Union Government and other statutory authorities.

                               JBF Petrochemicals Ltd , subsidiary of JBF Industries, has entered into an agreement with BP to license its latest generation Puri-
514034                139.8     fied Terephthalic Acid technology as the company is aimed to build a 1.25 million tonnes per annum unit at Mangalore SEZ to
                                produce PTA by the end of 2014.
                               Sobha Developers has sold its properties worth `479 crore in the first quarter of the current fiscal, up by 58% from `302.7 crore
532784                333.1     a year-ago period. The company's sales volume and realization per sq ft rose by about 26% each. Further, the company sold 8.35
                                lakh sq ft area in April-June quarter of this fiscal ffrom 6.65 lakh sq ft last year, in terms of volume.


                               Videocon Industries, with interests in oil and energy, is planning to sell its direct-to-home (DTH) business Videocon d2h to one of
511389                174.2
                                its peers. The idea behind the move is to build scale with solid subscribers, but with a minor stake.


 Industry News
 Jain Irrigation Systems, the world's second largest micro irrigation company has declared that it has received the regulatory approval from RBI to launch a
  NBFC. This approval from RBI will facilitate the company to improve its future growth, which was stagnating due to huge jump in working capital are of stand-
  ard quality.


 India's oil imports from Iran declined by 18.2% in June from a year earlier. In June, refiners imported about 346,600 barrels per day (bpd) of Iranian oil, up
  42.5% from May.Monthly imports from Iran may fall 13% to 300,650 bpd in July, when the OPEC member's daily oil exports could decline to a maximum of 1.1
  million bpd, about half of the 2011 average.


 Economy News
 The Planning Commission Deputy Chairman Montek Singh Ahluwalia is likely to frame a target of reducing poverty by 10% to less than 20% of the population
  by 2017 - the terminal year of the 12th Five-Year Plan.


 PE Deal Watch', a monthly round-up of deal activities in the country witnessed PE investments worth $763 million across 35 deals in June, nearly double of the
  total investment value declared last month. Though the number of deals has increased merely by 10%, the value of investments increased significantly.




 Source: Dion Global Solutions Ltd
Corporate Actions
                                                            Record Dates

 Company name                                         BSE Code                      Purpose           Current week                           Forthcoming week

 Zylog Systems                                         532883                          Split           03/07/2012

 DIL Ltd.                                              506414            Interim Dividend                                                          06/07/2012

                                                       Ex Dividend Date
 Company Name                                         BSE Code                         CMP            Current Week                           Forthcoming week
Torrent Cables                                         523856                                               09/07/2012
                                                                                      106.1
Explicit Fin                                            530571                           5.3                09/07/2012
Krishna Ferro                                           513627                         10.2                 09/07/2012
Liberty Shoes                                          526596                         109.5                 09/07/2012
Asian Hotels (East)                                     533227                        244.9                 10/07/2012
CESC                                                   500084                         303.0                 10/07/2012
JSW Steel                                              500228                         715.0                 12/07/2012
Ashok Leyland                                           500477                         25.6                 12/07/2012
HDFC                                                   500010                         683.6


                                                                   Ex Split
 Company Name                        BSE Code                         Current Week                                             Forthcoming Week

                                                      CMP                 Ratio                      Date                CMP        Ratio                Date
 -                                          -               -                   -                           -              -            -                       -


                                                                Ex Bonus
 Company Name                         BSE Code                        Current Week                                             Forthcoming Week
                                                           CMP          Ratio                        Date                 CMP        Ratio               Date
 Orbit Exports Ltd.                    512626               78.7          2:1                  09/07/2012
 Hercules Hoists                       505720           316.9             1:1                  11/07/2012
 Gabriel India                         505714               61.3          1:1                  12/07/2012
 Micro Technologies                    532494                                                                            142.2         1:1          17/07/2012

Forthcoming Results

Company                                          BSE Code                                                                 Date                           CMP

HDFC                                              500010                                                          11/07/2012                            683.65

Infosys                                           500209                                                           12/07/2012                         2,443.85

TCS                                               532540                                                          12/07/2012                          1,246.20




 Source: Dion Global Solutions Ltd
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