Daily Market Insight Recap of Positive Steps by Government

21-01-2013

Daily Market Insight

What will happen?
Positive steps taken by the Government during
the week led to a decent intraweek rally in our
India
• Eight Infrastructure
benchmark indices. Partial deregulation of diesel
prices was seen as a landmark development on Industries
the reforms front and as a result, the market (25-31 Jan)
managed to eventually close above the
psychological level of 20000 (Sensex)/ 6000
(NIFTY) for the first time after December 31,
2010. Last week's low of 19596 / 5940 remains China
to be a key support in the coming trading • HSBC Flash
sessions. A breach of this level may trigger
Manufacturing PMI
pessimism in the market and in such a scenario,
(24 Jan)
we expect a corrective move towards the next
support levels of 19406 - 19221 / 5897 - 5842. • MNI Jan Business
Corporate results will continue to hog the Sentiment indicator
limelight. The coming week has a number of (25 Jan)
larger companies such as HUL, L&T, HDFC and
Maruti Suzuki announcing their results.

After this weekend, it is only the 29th, on which
there has been some debate on how much the
Reserve Bank of India (RBI) can move. Partly, the
bond yields have also come back. So, that is the
last big trigger for the market in the next 15-20
days which could take the market higher from
where we are right now. We can have a thrust
towards 6,100-6,150 over the next few days.

Events to watch...

US
• Existing Home Sales
(22 Jan)
• MBA Mortgage Applications
(23 Jan)
• Initial Jobless claims (MoM)
(24 Jan)

© Copyright 2012, HBJ Capital Services Pvt. Ltd. info@stoplosstrade.com

21-01-2013

STOCK WATCH:

Reliance likely to lead next leg of rally
for markets:
Oil and Gas major reliance Industries
surprised the street by posting first profit
increase after four quarters of declining
returns, boosted by higher Gross Refining
Margins (GRMs) and good show from its
Pet. chem Segment. Reliance beats street
in Q3 earnings with net profit up 24
percent to Rs 55.02 billion from Rs. 44.4
billion a year ago.

Brokerages like Credit Suisse and CLSA
have maintained outperform rating on RIL
and raised their target price on expectations
of improved earnings in coming years as the
company continues its capex plans, better
gross refining margins, retail business and
higher gas prices. Macquarie has upgraded
the stock to outperform as it sees earnings
improve on the back of capex. It sees the
stock to hit Rs 1,100 in next 12-months.

NIFTY FO has resistance at 6109 - 6119
Outlook for the day Level; above which other resistance
Markets for the week ended made smart levels are at 6161 - 6190 Level with
comeback after reforms announced by the highly Volatile Trend, In Downside
Government on front of partial regulation on support levels are at 6019 - 6003 Level;
petroleum product to close nifty above 6050 below 6003 Level, other support levels
levels. Sensex and Nifty picked up momentum on are at 5970 - 5933 Levels.
the back of excellent corporate results and better
than expected December month Inflation
numbers and the Finance minister’s decision to INDICES LTP Change % Change
defer the implementation of ‘General Anti- NIFTY 6064.40 25.20 0.42%
Avoidance Rules’ – GAAR.
What is heartening is SENSEX 20039.04 75.01 0.38%
that FII inflows continue unabated (FIIs have
already pumped in ~Rs 90 billion this calendar CNX
3783.65 -3.50 -0.09%
year into Indian equities) amid hopes that SMALLCAP
Government will continue with further reforms CNXMIDCAP 8591.35 -1.50 -0.02%
and deliver a credible plan on fiscal
consolidation. BANKNIFTY 12680.00 30.40 0.24%


21-01-2013


COMMODITY BUZZ!
Gold
MCX February gold futures fell sharply on Thursday due to strong gains in Indian
rupee against US dollar as the government of India, in its fuel reforms, allowed oil
companies to make small changes to diesel prices over a period of time.

MCX February Gold futures are expected to trade slightly lower on account of
strong gain in Indian rupee against US dollar. MCX February gold will find a
support at 30,800/30,935 levels and resistance 30,400/30,210 levels.

COPPER
Copper price recovered slightly from low on the back of positive economic data
from US and China. U.S. housing starts rose most in four years while initial
jobless claims declined to five year low, which indicates economic expansion.
Industrial production in the U.S. climbed for a second month in December as
demand picked up for business equipment, showing factories expanded even as
lawmakers battled over the federal budget.

MCX February Copper is expected to trade slightly higher on account of favorable
economic data from US and China. MCX February Copper shall find a support at
432/428 levels and resistance 446/452 levels.

Buy MCX February Copper between 432-435, SL-427 and Target-
446/451.

CRUDE
MCX February crude oil is expected to trade higher on account of reduced crude
oil
production by Saudi Arabia coupled with positive economic data from US and
China. MCX February crude oil shall find a support at 5090/5040 levels and
resistance 5235/5285 levels.

Buy MCX February Crude Oil between 5090-5100, SL-5035 and Target-
5232/ 5280.


21-01-2013


Option Strategy- NIFTY OPTION OPEN INTEREST CHART

9000000
8000000
7000000
6000000
5000000 CALL OI
4000000
PUT OI
3000000
2000000
1000000
0
5500 5600 5700 5800 5900 6000 6100 6200 6300 6400

NIFTY OPTION OPEN INTEREST CHANGE CHART

800000

600000

400000

200000 CALL OI CHANGE

0 PUT OI CHANGE
5500 5600 5700 5800 5900 6000 6100 6200 6300 6400
-200000

-400000

-600000

The option data suggests that the market participants are currently
visualizing the 6200 mark on the higher side and 6000 on the lower side.
Very High PUT has been written for 6000 PUT option, which indicates that
6000 would work as a support for NIFTY in near future. Change in OI
remains equal for 6100 CALL and PUT keeping the total Open Interest for
6100 CALL to be at higher side which will act as resistance for NIFTY.


21-01-2013


Derivative Info
Increase In Open Interest
%Chg.
Symbol Prev. OI Curr. OI %Chg. OI Curr. Price Price
IOC
HINDZINC
1612
1641
2330
1988
44.54%
21.15%
350.4
130.6
10.94%
-1.58%
ONE CAN GO
PETRONET 2042 2442 19.59% 160.8 -0.12% LONG IN ONGC
ONGC 9758 11407 16.90% 339.05 7.55%
UNIONBANK 1561 1811 16.02% 268.9 1.07%

Decrease In Open Interest
%Chg.
MARUTI
ONE CAN GO EXIDEIND
7503
3274
6601
2957
-12.02%
-9.68%
1545.85
126.5
2.89%
-9.29%
SHORT IN CESC CESC 2497 2280 -8.69% 325.25 2.62%
PTC 833 781 -6.24% 79.5 0.44%
HDIL 6080 5707 -6.13% 120.7 1.00%

Increase In Open Interest & Decrease In Price
%Chg. BUY
HINDZINC 1641 1988 21.15% 130.6 -1.58%
PETRONET AND
PETRONET 2042 2442 19.59% 160.8 -0.12% HAVELLS
WIPRO 4089 4598 12.45% 397.4 -7.86%
HINDUNILVR 12576 14034 11.59% 490.15 -2.11%
HAVELLS 888 941 5.97% 665.25 -0.92%

Decrease In Open Interest & Increase In Price
SELL Symbol Prev. OI Curr. OI %Chg. OI Curr. Price
%Chg.
Price
MARUTI AND MARUTI 7503 6601 -12.02% 1545.85 2.89%
CESC
HINDALCO PTC
2497
833
2280
781
-8.69%
-6.24%
325.25
79.5
2.62%
0.44%
HDIL 6080 5707 -6.13% 120.7 1.00%
HINDALCO 17280 16341 -5.43% 123.25 0.37%


21-01-2013


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21-01-2013


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Daily Market Insight Recap of Positive Steps by Government

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