Todays Intraday Calls/Markets After Budget
Standard & Poor’s 500 Index, after consumer spending topped economists’ estimates and American International Group Inc. sold an Asian unit for USD 35.5 bn. The Dow Jones, S&P 500 and NASDAQ surged 0.76% and 1.02% and 1.52%, respectively. AIG climbed 4.1% after agreeing to sell AIA Group Ltd. to Prudential Plc. Walt Disney Co. paced gains in consumer companies after the Commerce Department said personal spending increased, while Intel Corp. helped lead technology shares higher after global chip sales rose
News Bits
- Tata Motors reported a consolidated net profit of Rs. 6.50 bn for the third quarter ended December 31, 2009, driven by new demand in the local market for new products added with government stimulus.
- ABB Ltd posted a 35% decline in consolidated net profit at Rs. 3.54 bn for the year ending December 31, 2009 amid sluggish economic conditions.
- Power Grid Corporation will invest a sum of Rs. 28.45 bn in various projects. The board of directors decided to invest Rs. 2.32 bn for system strengthening in Southern Region.
The board has approved investment of Rs. 21.44 bn for the transmission system associated with Pallatana Gas-Based Power Project and Bongaigaon Thermal Power Station.
Political News
- The government plans to come out with the first-ever roadmap within six months for reducing public debt, which has been rising after the exchequer got a hit due to stimulus packages.
- Manufacturers increased production and employment in February, signaling factories are leading the nation out of recession. The Institute for Supply Management’s factory index fell to 56.5 from January’s 58.4, which was a five-year high, figures from the Tempe, Arizona-based group showed.
- Spending by US consumers increased in January for a fourth consecutive month. The 0.5% increase in purchases was more than anticipated and followed a 0.3% gain in December that was larger than previously estimated, Commerce Department figures showed. Incomes climbed 0.1%, short of expectations and reflecting declines in dividends and interest.
Intraday Tips
Nifty Forecast:
BUY NIFTY ABOVE 4895 TGT 4920-4968-4999 SL 4852
SELL NIFTY BELOW 4965 TGT 4921-4895-4860 SL 5007
BUY EDUCOMP FUTURE
ABOVE 662
TARGET 685-696
SL 648
SELL EDUCOMP FUTURE BELOW 684.5
TARGET 662-650
SL 698
BUY DLF FUTURE ABOVE 291
TGT 304-311
SL 282.75
SELL DLF FUTURE BELOW 304
TGT 291-284
SL 313
BUY ESSAROIL FUTURE ABOVE 130
TGT 133.75-135.75-140
SL 127.45
SELL ESSAROIL FUTURE BELOW 133.75
TGT 130-128
SL 136
RELINFRA
Buy near 1002
SL 995
Targets 1012,1020
Or if trades below 963
Short RELINFRA
SL 970
Targets 953,945
AXISBANK
Buy above 1126
SL 1119
Targets 1136,1144
Or if trades below 1095
Short AXISBANK
SL 1102
Targets 1085,1078
RANBAXY
Buy above 466
SL 460
Targets 475,480
Or if trades below 430
Short RANBAXY
SL 436
Targets 421,415
Happy Holi/Stocks Tips/Day Trading Tips
The long Budget completed its lights and after that we are back again to our global We we’d a mixed budget and it was not enough to kindle the lights of common man but also if we look in to the angle from markets, our FM did his part, so the markets welcomed the session with a handy 62 points gain on last Friday.
Important Highlights of Budget:
· Fiscal deficit for FY11 pegged at 5.5% of GDP; rolling targets of fiscal defict at 4.8% in FY12 and 4.1% in FY13
· Inflation seen at 4.5% in both FY12 and FY13; 4% in FY11
· GDP growth seen at 9% in FY13 and 8.5% in FY11
· Divestment proceeds expected at Rs.40,000 cr in F
We are presenting the line chart once again. Here, 3 Moving averages 50, 100 and 200 periods are shown. The following points to be noted now.
1. At point “A”, NIFTY dropped below 50 DMA but away from 100 DMSA.
2. At point B, NIFTY breached the 100 DMA but away from 200 DMA.
3. At Point C, NIFTY came closer to 200 DMA, after breaching 50 and 100 DMAs.
4. At present, the 50 DMA is too close (only 6 Points) to the cross over.
Last week’s chart, in which I had shown you the past performance when such crossover occurred.
From all the points mentioned above you can very interpret the Bearishness is on the increase. From point no.4, we can see the crossover can occur any day next week.
Trading Strategy for 2 Mar, 2010
Intraday Support for the market shall be 4872 & 4836 .
While the market will experience resistance at 4978 & 5018.
Buy above 4948 with Stop Loss of 4897
Sell below 4897 with Stop Loss of 4948
RELINFRA
Buy near 1002
sl 995
Targets 1012,1020
Or if trades below 963
Short RELINFRA
SL 970
Targets 953,945
AXISBANK
Buy above 1126
sl 1119
Targets 1136,1144
Or if trades below 1095 Short AXISBANK
SL 1102
Targets 1085,1078
RANBAXY
Buy above 466
sl 460
Targets 475,480
Or if trades below 430
Short RANBAXY
SL 436
Targets 421,415
Todays Intraday Tips and Budget Expectations
Today, A Budget day expect good intraday movement in Nifty. There could be some surprise swings in Nifty Futures with every statements made by the Finanace Minister.
On the Upside, Look out for the 4950 mark, if its closes above this level , we could reach out to much higher trading prices.On the downside, watchout for the 4800 mark.
Some reports indicate that Small & Medium scale enterprises are most likely to be affected blissfully from the upcoming union budget. The small scale marketers and entrepreneurs are expecting a pile load from the Finance Minister’s decision making metabolism.
Things in the budget speech you should watch out for (that may affect market movement) are :
- Corporate tax rate will be lowered to 30%.
- Creation of job opportunities which is likely to be dealt with fiscal policies thus in accordance to several different development program.
- Textile Industry expecting the interest subsidy to be brought to 8 per cent.
- Liberalize tax slabs. It would be a welcome step if this IT slab limit is increased to Rs 200,000.
- Increase exemption limit of various allowances. Exemptions can be raised to Rs 1,000 pm for children education, Rs 3,000 pm for hostel expenditure and Rs 2,500 pm for transport allowance.
- Raise housing loan exemption limits. Allow deduction for interest during the construction period instead of allowing it only after the construction is complete.
- Increase the limit of Rs 15,000 to Rs 20,000 for health insurance premium paid for self, spouse and dependents parents. Also Increase the limit for senior citizens to Rs 25,000, considering that healthcare costs for senior citizens are higher.
- Increase in Section 80C limit. Section 80C of the Income-tax Act, 1961 allows deduction of up to Rs 100,000 for investments in a host of specified schemes like mutual funds, fixed deposits, provident fund, etc. That limit can be raised further (to 2,00,000).
However the Economic Survey tabled on Thursday reiterated the view that the Indian economy was firmly back on track after encountering the global downturn and predicted a return to 9% GDP growth by FY12.
Intraday Calls
BUY NIFTY ABOVE 4852 TGT 4871-4883 SL 4836
SELL NIFTY BELOW 4870 TGT 4852-4841SL 4886
State Bank Of India
BUY WITH STOPLOSS OF 1882
TARGETS – 1946-1956
IF CLOSES ABOVE 1956 THEN 2030-2040
Todays Intraday Calls And Excerpts of Populist railway budget (Though overshadowed by Sachin’s Double Ton)
Mamata Banerjee presented the Annual Railway Budget for the financial year 2010-11. (Thought overshadowed by Sachin’s Double Ton)
Following are the extracts of railway budget:
- No privatization for railway department
- Limited funds available consistent for line addition
- Special task force to clear proposal for investment in 100 days
- Time for business partnership with railways has come
- To come out with 10 year plan ‘Vision 2020.’
- Plan to raise Rs 100-200 billion in FY’11
- To launch double-decker trains on pilot basis
- To complete 1000 km lines in one year.
- 117 new trains to be flagged off by March 31.
- Rs 1,300 crore for passenger amenities
- To set up six bottling water plants via PPP model
- Not to increase freight tariff
- All unmanned level crossings to be manned in next five years
- 381 diagnostic centers to be set up through out the country, also hospitals
- Center for Railway Research to be set up in affiliation with technical institutes like IIT etc.
- To set up 12 cos of women RPF
- To acquire 80,000 new wagons
- To run 101 suburban trains in Mumbai
- To introduce 54 new trains in FY’11
- FY’11 freight Loading Aim at 944 mt
- To extends routes for 21 trains
- to set up 10 auto ancillary hubs in PPP model
- FY’11 gross traffic receipts at Rs 94,800 cr
- To set up 10 more Duranto trains
- Service charge on AC class cut to Rs 20 from Rs 40
- cut freight on food grain, kerosene by Rs 100/wagon
- to set up more freight corridors
- FY’11 plan layout Rs 41426 cr
- To start door to door service for freight movement
- To sign pact for western corridor pact with Japan Company in March
- premium service for parcel freight movement
- to set up dedicated passenger corridor
- To set up golden rail corridor for dedicated passengers
- Non Core Biz Revenue seen at Rs 100 billion
- To beat FY10 freight target by 8 mt
- More ticketing centers to help the public
- Pilot project for fire detection
- Funding for metro rail project increased by 5%
AND ABOVE ALL SACHIN BECAME THE FIRST BATSMAN IN THE HISTORY OF ONE DAY GAMES TO MAKE A DOUBLE CENTURY. IF IT COULD MOVE OUR MARKETS NORTHWARD…
Intraday Calls:
Nifty(Spot): If Nifty(spot) trade above 4875 then some more uptrend in the market upto 4900 – 4920 – 4950, and if Nifty(spot) trade below 4830 then some profit booking in the market upto 4800 – 4780
Intraday Calls :
JSWSTEEL
Buy near 1072
SL 1065
Targets 1082,1090
Or if trades below 1044
Short JSWSTEEL
SL 1051
Targets 1034,1028
MARUTI
Buy near 1374
SL 1367
Targets 1384,1390
Or if trades below 1331
Short MARUTI
SL 1338
Targets 1321,1315
MCDOWELL-N
Buy near 1335
SL 1328
Targets 1345,1353
Or if trades below 1308
Short MCDOWELL-N
SL 1315
Targets 1298,1292
Future Calls:
BUY NATURAL GAS ( MARCH )
ABOVE 227.5
STOPLOSS 224
TARGETS: 231-235-239 .
Todays Stock Market Tips
The global cues are is not good for tomorrow (as of now). Europe has closed deep in the red and the Dow is also trading bearishly (-77). Nifty may open lower around 4840 levels and then decide whether to break down or crawl up north. As we are suggesting every now and then we should wait for markets to consolidate for 2-3 days and then we can see the clear picture. At least till 26th Feb (You know why.)
Nifty:
BUY ABOVE 4840 TARGET 4872-4888 SL 4917. IF STAYS ABOVE 4910 FOR 8-10 MINUTES EXTENDED TARGETS ARE 4919-4931
SELL BELOW 4873 TGT 4840-4821 SL 4896. IF STAYS BELOW 4805 FOR 4-5 MINS THEN EXTENDED TARGETS ARE 4787-4765-4750
Not much to say about todays intraday calls but some experts says…
Buy Orchid Chemicals at Rs 160-155: Anil Manghnani
Buy Bharti at Rs 265: Anil Manghnani
