Market Mantra
Silence in the Street
I have learned silence from the talkative, toleration from the intolerant, and kindness from the unkind… - Khalil Gibran
The street appears to be silent for now and not much action is really expected before the F&O expiry. The Indian equity market will remain affected by concerns about ongoing political slugfest over CAG reports.
The BJP appears to have reached a no-compromise stage refusing to listen to the Prime Minister’s statement and instead demanding his resignation. The Prime Minister, kind of justifying his silence on issues says “My silence is better than a thousand answers…” andthat “I must be allowed to defend myself.”
The ruling party has clarified that there is no plan to bring a Confidence Motion in Lok Sabha or sine die adjournment of Parliament.
The Asian markets are flat to negative. US indices ended slightly lower. The start for the Indian market will be flat to negative with no positive triggers in the offing. Globally, investors do not want to take fresh bets and are hoping to expect some better comments from the annual Federal Reserve Bank of Kansas City meeting at Jackson Hole. In the past Fed chairman Ben Bernanke has comments which have moved the market.
Trading ideas (Time period: 1-3 days)
LIC Housing Finance (SELL, below Rs249, Target Rs237): LIC Housing Finance has signaled trend reversal from a medium term uptrend after prices closed below its 200-DMA in yesterday’s trading session. Moreover, the daily chart is forming lower tops and lower bottom and short term support for the stock placed at Rs250 which was broken convincingly and below same the downward momentum is expected to continue. This was also followed with breakdown from Symmetrical Triangle pattern. The amplitude of breakdown of triangle projects downside potential in the counter to Rs237. We recommend going short on LIC Housing Finance September Futures below Rs249 with stop loss of Rs255 for Target of Rs237. (Duration 6 days)
Derivative strategies (Time period: Till expiry)
± Short Yes Bank September Future above Rs340 for the Target price of Rs330 with a Stop loss placed at Rs345.
Lot size: 1000
Remarks: Net maximum profit of Rs10,000 and net maximum loss of Rs5,000.
Mutual funds
Fund focus
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UTI Opportunities Fund
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Invest
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Fund manager
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Anoop Bhaskar
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Min investment
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Rs5,000
| |
Latest NAV
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Rs28.9
|
Entry load
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Nil
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NAV 52 high/low
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Rs29.5/24.9
|
Exit load
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1% before 1 year
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Latest AUM
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Rs2,780cr
|
Benchmark
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BSE 100
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Class
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Equity – diversified
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Asset allocation
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Equity (92%), Cash (8%)
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Options
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Growth & dividend
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Expense ratio
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1.94%
| |
Corporate Snippets
± Reliance Industries Ltd has scheduled a planned maintenance at one of its diesel hydro treater units of the domestic tariff area refinery at the Jamnagar refining complex. (BL)
± Tata Motors has set aside 16 acres exclusively for its Futuristic Infantry Combat Vehicles (FICV) project at Dharwad, Karnataka. (BL)
± The Cabinet Committee on Economic Affairs is likely to take a call soon on offloading 5 %t stake in Neyveli Lignite (NLC). (BL)
± Lupin aims to launch a slew of drugs in the US market in the next four years from its pipeline of 110 products awaiting approval from the country’s health regulator. (BL)
± Videocon Group plans to invest Rs.8-10bn in telecom business in Punjab. (BL)
± Larsen and Toubro Ltd (L&T) has decided to sell its entire stake in L&T Plastic Machinery Ltd to Japan’s Toshiba Machine Co Ltd for an undisclosed sum, in line with the company’s strategy to realign portfolios and focus on core business units. (BS)
± In an effort to reach out to the more consumers, Zee Entertainment Enterprises (ZEEL) is planning to go for a digital marketing drive and is also in talks with All India Radio (AIR), popularly known as Akashvani, to air its mythological show Ramayan. (BS)
± JSW Bengal Steel, is yet to tie up the finances for its proposed Rs.100bn steel plant at Salboni in West Bengal. (BS)
± Even as the US truck major Navistar Corp is facing regulatory and takeover threats from investors and global car makers like Volkswagen and Fiat, its Indian joint venture partner Mahindra & Mahindra says its Indian arm, Mahindra Navistar, is largely insulated from the US developments. (ET)
± Citizen Watches India said that company has appointed England cricket player Kevin Pietersen as its brand ambassador. (ET)
± Godrej Security Solutions is targetting a turnover of Rs.8bn this year, a senior executive of the company said. (ET)
± Aurobindo Pharma said its board has approved the appointment of PV Ramprasad Reddy as Executive Chairman of Aurobindo Pharma USA, Inc. (ET)
± Larsen & Toubro has bagged an order worth Rs.13bn from Petroleum Development Oman. (ET)
Economy snippets
± More coal blocks could be de-allocated based on the periodic review by an Inter-Ministerial Group (IMG), Coal Minister Sriprakash Jaiswal said. (BL)
± CII President Adi Godrej said that the GST (goods and services tax) has the capacity to push up the GDP (gross domestic product) by 1.5% . (BL)
± The Supreme Court on Monday agreed to fixed a new deadline for fresh auction of 2G spectrum licences. The apex court has directed the Government that it should complete the auction till January 11, 2013. (BL)
± The Commission for Agriculture Costs and Prices (CACP) has strongly advocated that the government should do away with its levy sugar obligation, and, instead, purchase the commodity for PDS operations directly from mills at price. (BS)
± The Reserve Bank of India has dismissed State Bank of India chairman Pratip Chaudhuri's suggestion that the cash reserve requirement - be scrapped. (ET)
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