Moving forward towards 8000! The festive Monday did manage to perch the indices at new highs even though volumes may not have been encouraging. But it’s a record high all the same and looks like the party will continue today too. The morning trade could see the Nifty comfortably bracing past the 7900 mark given the positive global cues for now. The outlook is a healthy start. Heavyweights including many of the leading banks will see some buying even as some reshuffle of stocks take place. The US market gained on upbeat housing data and reports that Russia and Ukraine were speaking in a somewhat peaceful tone. The National Association of Home Builders/Wells Fargo index rose two points to 55, indicating the recent downturn in the housing market may have bottomed, says a report. Moodys Investors Service says that it expects Indian refiners credit metrics to improve over the next 12 months, while upstream producers credit profiles should remain stable on the back of continued strong cash flow generation. Trading ideas (Time period: 1-3 days) IDFC (BUY, above Rs150, Target Rs156, SL Rs147): The broader bull market in IDFC remains intact. As yet again, the stock found support at its 50-DMA. Since May 2014, the stock on multiple occasions, has taken support at this critical moving average. The same also coincides with the support of its rising trendline. Following a sharp decline from a peak of Rs167, the stock went through period of correction. In yesterday’s trade, the stock broke out from a falling wedge pattern with impressive volumes. (Duration 4 days) Derivative strategies (Time period: Till expiry) Long CALL TATAMOTORS 510 August at Rs7-7.5 for the target price of Rs17 with a stop loss placed at Rs2. Lot size: 1000 Remarks: Net maximum profit of Rs10,000 and net maximum loss of Rs5,000. Corporate Snippets The consortium of lenders headed by State Bank of India has tightened the screws on debt laden Bhushan Steel as they decided to conduct a forensic audit of the company by an eminent audit firm and appoint three of the representatives on the board of the steel maker. (BS) DLFs Mall of India, claimed to be one of the largest upcoming mall across the country in Noida, has been served a notice to stop all construction activities till a clearance has been obtained from the National Board for Wildlife. (BS) After oil, Cairn Indias prolific Rajasthan block holds significant natural gas reserves, estimated at 1-3 Trillion cubic feet, over half of which can be produced. (BS) Indian Oil Corporation’s maiden 5-million tonnes per annum LNG import, storage and regasification terminal at Ennore is expected to go on stream by 2016-17. The company had originally planned to commence the project in 2015. (BS) Godrej Consumer Products Ltd may consider setting up a new plant in Seemandhra, while continuing the expansion of the existing capacity of plants in North East and Jammu to meet growing demand for its products. (BS) As part of its rebalancing strategy, IDBI Bank Ltd decided to focus more on retail. In the next 18 months, the Bank has set a target 40% of its total loan book should be retail, compared to 28% currently. The Bank hopes to turn around in the next two years with its new initiatives. (BS) Mahindra & Mahindra is keen on increasing its global presence in tractors which will see a sharp focus on markets like Brazil and Turkey. (BL) Bharat Heavy Electricals Ltd has developed a new kind of boiler. Known as ‘Fuel Flexible Supercritical Boilers, this new equipment can help in producing electricity with 100% domestic coal or 100% imported coal. (BL) Tata Consultancy Services announced that it will earmark a budget of Rs1bn to be spent on governments Clean India initiative. (ET) Adani Group said it was all set to expand the Dhamra Ports capacity to 100 MT per annum in Odishas Bhadrak district. (ET) Indian Oil Corporation has proposed to invest about Rs12bn during the current financial year for expanding its Liquefied Petroleum Gas pipeline projects. (ET) Tata Motors is looking to launch 20-25 new platforms in the coming years, the companys Head-CV & ED said. (ET) Economy snippets With increasing number of drug patent filings along with litigations between innovator companies and generic drug producers, the Controller General of Patents, Design and Trademark, under the Department of Industrial Policy and Promotion, has issued draft guidelines for examining patent applications in the field of pharmaceuticals. (BS) India has touched the top spot in consumer confidence among the 60 countries measured in Nielsens Global Survey of Consumer Confidence and Spending Intentions in the second quarter (April-June) of 2014. (BS) The Corporate Affairs Ministry has amended the rules governing RPTs so as to ease the “materiality” threshold for minority shareholders’ approval. Companies will now be required to send fewer and more material related party transactions (RPTs) to shareholders for special resolution approval. All the RPTs won’t need minority shareholders’ nod. (BL) To provide relief to domestic producers, the Government has imposed safeguard duty on the import of seamless pipes and tubes, which are used in equipment for power generation, oil exploration, and bearing industry, besides others. (BL) The Indian automobile sector, which faced major slowdown in demand in the last two years, witnessed about 85% decline in FDI to only US$73mn during April-May this fiscal, as per the data of the Department of Industrial Policy and Promotion. (ET)
Posted on: Tue, 19 Aug 2014 03:57:41 +0000
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