Muted start; Infy could weaken sentiment A guidance of sorts from Infosys appears to have come earlier than usual. Narayana Murthy reportedly told investors that revenue growth will be around 11.5% compared to 13% industry growth projected by Nasscom. Murthy went on to add that he is not happy with the way Infosys has performed. The ADR of Infosys came crashing down and the Indian stock could mimic the movement at open at least, unless some clarifications emerge later in the day. Downgrades on the stock is a given. The market meanwhile is expected to see a muted start. Pressure from Infosys may weigh on the main indices even as investors react to retail inflation which come lower and industrial production which entered positive zone. Retail inflation for February stood at 8.1%, lower than 8.8% level in previous month. While rural inflation for February stood at 8.51%, urban inflation for the month under review stood at 7.55%. Trading ideas (Time period: 1-3 days) Hexaware Mar Futs (SELL, below Rs155.50, Target Rs149, SL Rs158.50): Hexaware has retreated below short-term support trendline which is placed at Rs157. Moreover, formations of lower tops suggests that the stock is struggling to sustain the momentum which it had in the month of February, rallying from Rs125 to Rs166. This chart also forms classic example of negative divergence on the oscillators and thus corroborates that major upmove is exhausted. To optimize risk reward scenario shorts position should be entered below Rs155.50. (Duration 5 days) Derivative strategies (Time period: Till expiry) Buy FUT Apollohosp March below Rs871 for the target price of Rs900 with a stop loss placed at Rs858 Lot size: 250 Remarks: Net maximum profit of Rs7,250 and net maximum loss of Rs3,250. Corporate Snippets Leading bourses BSE and NSE have given approval for the merger of Mahindra Engineering Services with Tech Mahindra saying that the amalgamation does not violate securities laws norm. (BL) Tilaknagar Industries has acquired the complete IMFL business of the Kolkata-based IFB Agro. (BL) Tech Mahindra has launched a global development centre together with Alstom Transport, a manufacturer of Rail Technology. (ET) Spicejet has signed a US$4.4bn deal with aircraft manufacturer Boeing for supply of 42 aircraft. (BL) Apollo Hospitals Enterprise Ltd is expected to infuse an additional investment of around Rs870mn for its upcoming Navi Mumbai facility which includes investment to add cancer care facility to the project under development. (BS) Steel Authority of India Ltd has requested the government to direct CIL arm Bharat Coking Coal to transfer the surface rights of its coal mine in Jharkhand to the steel PSU so that it can adhere to the committed schedule for development of the block by April next year. (ET) Wipro has entered into a strategic partnership with the US-based SGI to service its customers and partners in big data and computing, and expand its market presence in India. (BS) IL&FS Engineering and Construction said it has won a Rs3bn contract for elevated metro stations in Kolkata Metro Line in West Bengal by Rail Vikas Nigam Ltd. (BS) Coal India said its officers will go on a three-day strike from Thursday to demand for a settlement of pay-related issues, in a move that could cut some of its 1.5mn tonne-per-day output and tighten domestic supplies. (BS) Economy snippets Retail inflation for February came in at 8.1%, lower than 8.8% level in previous month. While rural inflation for February stood at 8.51%, urban inflation for the month under review stood at 7.55%. (BL) Showing a ray of hope, industrial output entered positive territory and recorded a 0.1% growth in January after contracting for three months in a row. The marginal improvement in the index of industrial production was mainly on account of higher power generation and mining sector output, while manufacturing declined. (BL) Rating agency Icra said difficulties being experienced in commercial vehicle, construction equipment and gold loans will result in non-bank lenders credit growth from retail segment to halve in FY14 to 8-10%. (ET) The total number of telecom subscribers in the country rose marginally to 922mn in January, on the back of increase in rural subscribers. The overall user base stood at 915.1mn at the end of December 2013, Telecom Regulatory Authority of India said. (ET)
Posted on: Thu, 13 Mar 2014 04:28:54 +0000
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