-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 Alankit Assignments Limited. 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