Weak start; IIP in focus The market has taken a much needed breather even as comparisons are being made to earlier rallies and FII strategy. The Indian currency will remain in focus even as reports suggest that RBI may have to start buying dollars to ensure that the Indian currency doesn’t strengthen to an extent that it will hurt the economy. The outlook is a weak start. The market will pay close attention to the January IIP and Feb CPI data. Asian stocks are down. A stronger yen has sent the Japanese market into the red. Oil has weakened. Investor scrutiny of China’s onshore bond market is intensifying following defaults. Japans Nikkei was down over 2%, while Hong Kongs Hang Seng index and Chinas Shanghai index was flat. The Dow Jones fell 67.43 points or 0.41%, to 16,351.25, the S&P 500 lost 9.54 points or 0.51%, to 1,867.63. The Nasdaq Composite dropped 27.26 points or 0.63%, to 4,307.188. Meanwhile, India’s exports contracted 3.67% in February making it evident that the export target of $325bn for the current fiscal may not be achieved. Trading ideas (Time period: 1-3 days) JK Tyres (BUY, above Rs149, Target Rs157, SL Rs145): After creating a base like pattern in last few weeks, the stock appears to be breaking on the upside. Moreover, the stock continues to move along with the support of its upward sloping trendline since October 2013. The stock is also on the verge of breaking out from the falling wedge pattern. The daily RSI is indicating a positive crossover and thus turning reward to risk ratio on the positive side. (Duration 5 days) Derivative strategies (Time period: Till expiry) Sell FUT Jisljaleqs (Jain Irrigation) March below Rs60 for the target price of Rs58 with a stop loss placed at Rs61 Lot size: 4000 Remarks: Net maximum profit of Rs8,000 and net maximum loss of Rs4,000. Corporate Snippets LIC could take physical possession of Unitech’s assets in Noida and Gurgaon if Unitech fails to clear its debt of Rs1.5bn to LIC. (BL) Indian Hotels Company will make a Rs5bn impairment provisioning on its investments, even as it continues to feel the heat of depressed market conditions. (BS) SEBI has asked Maruti Suzuki to explain its decision to make its Gujarat plant an arm of the Japanese parent. The regulator is exploring legal options under Section 11 of the Sebi Act. (ET) The three-day proposed strike by Coal India executives from Wednesday seems imminent, as negotiations with the management failed on Tuesday. (BS) Ranbaxy Laboratories is in talks with at least two companies on sourcing ingredients for a generic version of AstraZenecas heartburn drug Nexium. (BL) SpiceJet announced a five day sale offering fares at an all inclusive price of Rs1,999 for travel between April 14 and June 30. The offer will last for five days. (ET) Airtel’s fixed-line broadband users will have to shell out more from next month for some plans due to an increase in input cost. (BS) India’s top security agency wants Reliance Jio Infocomm to become part of an industry platform which shares information with the government on potential cyber security threats to the country’s telecom networks. (ET) HCL Technologies expects its financial services pipeline in Europe to be in excess of US$1bn this fiscal year as economy improves and European clients become increasingly comfortable with offshore outsourcing. (ET) Havells India is planning to raise money by listing its European subsidiary Sylvania Global on the London Stock Exchange to fund acquisitions of brands or companies in Latin America and Europe. (ET) Sesa Sterlite plans to fire 40% of its workforce in the Goa state to cope with spiraling costs and negligible business. (ET) The oil ministry has sought legal opinion to ascertain if BP and Canada’s Niko are part of the arbitration initiated by their partner Reliance Industries against the government levying penalties for KG-D6 gas production falling short of target. (ET) Economy snippets India’s merchandise exports in February recorded their first decline in eight months, dashing policy makers’ hope of meeting the US$325bn target for the current financial year. The country’s exports fell 3.67% in the month to US$25.68bn, against US$26.68bn in the year-ago period. Imports in the month, meanwhile, declined 17.09% to US$33.82bn, against US$40.79bn in February last year. (BS) The RBI will switch to reviewing monetary policy every two months from April 1. The new system is in line with the recommendations made in the Urjit Patel committee report. (BS) The RBI has decided to conduct a 21-day term repo variable rate auction for a notified amount of Rs500bn on friday. The reversal will be onApril 4. RBI also said that there will be no term repo auction on March 18 when the existing 28-day term repo of ~ Rs300bn matures. (BS)
Posted on: Wed, 12 Mar 2014 04:35:50 +0000
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