Morning Call- Mar 30 2011
Wednesday, March 30, 2011
Swan Telecom and Loop Telecom were used as fronts by the ADAG and Essar Telecom, respectively, to get 2G spectrum illegally during the tenure of former telecom minister A Raja, the CBI has told the Supreme Court. (BS)
With the US market recovering fast and a positive turn in business environment, TCS sees increase in pricing that might be more visible in FY12. (BL)
RBI has questioned the valuation and structure of the deal cut by Axis Bank to buy Enam Securities. (ET)
The Indian stock market seems to have hit a purple patch these days after being rangebound and choppy for a number of weeks. A fresh bout of buying by the FIIs and ETFs in recent days has played a major role along with the Government's move to introduce a string of reform-centric bills in the parliament. A resilient global trend has only added fuel to the fire.
"We wander for distraction, but we travel for fulfillment."- Hilaire Belloc.
It is easy to get distracted by what most people may tout as ‘the final before the final’. All Indians are hoping that the ‘Men in Blue’ come out triumphant in the clash of the titans. But the market is a different ball game altogether. Don’t let distractions affect you as it is the F&O expiry tomorrow.
The Indian markets are likely to begin the trade on a positive note taking lead from the supportive global cues. PTC India Financial Services will list today
Headlines for the day:
Ashok Leyland, Nissan pare LCV investments
Essar inks pact to buy Stanlow refinery
US company buys AP Paper for Rs1400 crore
Prices pare early weakness and rises modestly higher
Oil prices pared early weakness and ended modestly higher on Tuesday, 29 March 2011 at Nymex. Prices dropped initially following weak economic data and also as traders anticipated that Libya will soon resolve its problems relating to supply to the world. But a steady dollar coupled with crisis at Japan kept the price fall under check and made prices reverse course.
The market is likely to see an upbeat start on firm global cues. US markets settled higher on Tuesday, 29 March 2011. Asian equities were trading firm today, 30 March 2011, as Japanese companies resumed production after the devastating earthquake earlier this month. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 23.50 points at the opening bell. Shares of PTC India Financial Services will debut on the bourses today, 30 March 2011.
Yesterday, Nifty opened firm and thereafter accelerated towards 5800 odd levels. Nifty made the high of 5788 and managed to close well above 5750 marks. Nifty has accelerated 400 points in a span of six trading sessions from 5400 to 5780 levels and is almost approaching towards the initial expected target of 5820 levels. Some profit-taking and consolidation cannot be ignored in next few sessions before Index resume its fresh up move thus trailing the stops for long holding positions will be advisable. Technically we continue to believe that Nifty has given a break-out of the “Symmetrical Triangular” pattern and thus should head towards fresh highs targeting initially 5820 followed by 6020 levels in the mid-term in best case scenario. The supports for the Index can be expected at around 5550 & 5350 levels Positionally. The levels to watch for the Index in the current week will be 5796 & 5912 levels on the higher end while 5460 & 5240 levels on the lower end. In intraday trade Nifty future will find support at 5701/5652 levels whereas its resistance will be at around 5794/5838.
Prices shed recent gains as traders take to profit taking
Precious metal prices ended lower on Tuesday, 29 March 2011 at Comex. Prices dropped as traders took to profit taking after bullion striking all time highs in recent times. A weak consumer confidence report kept price fall under check. A modestly strong dollar also impacted prices. Traders kept keen eyes on continuing violence in Middle East and North Africa and how situation shapes up there.