A New High is here, before the Budget :: HDFC Sec

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The Nifty managed to close with solid gains of 145 points at 8696  on Tuesday.

The Nifty is now at an all time high mark, both in intraday and closing terms. This came on large volumes. The volumes in the F&O segment were higher by 48% and by 12% in the Cash segment.

Where do we go from here ?

For that you will have to look in the rear view mirror.

The Nifty has been trading in an upward sloping channel The accompanying weekly chart shows that channel.

Expect the upper trend line of this channel to act as a resistance. Depending upon, when we cross the line, the resistance could be in the region of 8950-9000 region. Mind you, this is an upward sloping channel. This means that the longer we take, higher will be the resistance.

What is heartening is that the MACD has just entered in the bullish territory while RSI on the daily chart is yet to get into the overbought zone. 

Previous all time high of 8627 is expected to act as a short-term support for Nifty going forward. 

Considering the technical evidences discussed above, we expect Nifty to extend the current rally up to 8950-9000 target in short to medium term. 

These are the Nifty stocks, which appear to be well placed.

BOB: Probable Breakout above 1108
Cipla
Grasim : Probable breakout above 3715
Hindalco: Triple bottom formation on the daily charts
Lupin
SBI

What to buy

We believe you could look at the following stocks  to buy

FMCG           : Nestle, United Spirits

Capital Goods: Bhel , L &T

Healthcare    : Cipla, Lupin

Banks           : Axis, Indusind bank, Yes Bank, IDFC

Auto             : Tatamotors, Ashok Leyland

Kotak Mahindra Bank Q3 profit rises 37%

Net Profit of Kotak Mahindra Bank surged to 37% YoY in Q3FY15 at Rs 465 Cr, aided by strong other income and lower provisions. This was expected at Rs 440 Cr. While, net interest income grew 16% to Rs 1,059 Cr, slightly lower than estimated Rs 1080 Cr. Asset quality experienced moderate improvement with gross NPA of 1.87% and Net NPA of 0.97% from 1.89% and 1.0% of previous quarter respectively. 

Meanwhile, the shareholders of banks approved the merger of ING Vysya Bank with Kotak Mahindra Bank on January 7, 2015 with swap ratio of 725 shares of Kotak for every 100 shares of ING. This amalgamation is subject to the approval of the Reserve Bank of India and the Competition Commission of India.

NIFTY Stocks: ITC and Zee to post earnings

ITC is expected to report 11% growth in its sales  for Q3FY15 to Rs 9690 Cr, primarily driven by Cigarettes and Paper (largely realization), while Hotels revenues would remain weak. However, the cigarette volume would decline 6% due to full impact of recent excise duty hike and consequent price hikes. Overall, net profit is likely to grow by 15% YoY at Rs 2750 Cr. 

In case of Zee Entertainment Ltd, revenue is estimated to increase 4% YoY whereas adjusted PAT is likely to jump 37% at Rs 290 Cr.

Tata, M&M await Rs 3,000-cr Army deal

Announcement of a Rs 500-cr initial order for SUVs is likely to happen within a few weeks

After a three-year wait, the country?s two largest homegrown automobile makers, Tata Motors and Mahindra & Mahindra(M&M), await the Indian Army?s announcement on new sports utility vehicles (SUVs). The choice is between Tata Safari Storm and the Mahindra Scorpio.

The army, is expected to announce an initial order of about Rs 500 crore for almost 5,000 vehicles in the next few weeks.In all, the order is likely to be worth Rs 3,000 crore for 30,000 SUVs over a 10-year period.

MIAL asks SpiceJet to clear dues to continue with flight operations

Mumbai International Airport Limited (MIAL) has asked SpiceJet to pay its pending dues by the first week of February, threatening to put the airline on a `Cash & Carry? mode from January end. 
This would mean that the airline can use the facilities of an airport only upon immediate payment of dues.

The airline has received a breather from the Airports Authority of India which has allowed it to clear the dues by month-end and to make a part-payment of dues. Spice Jet?s dues with AAI are over Rs 200 crore. A SpiceJet spokesperson said that the issue has been sorted out with Mumbai airport. A MIAL spokesperson refused to comment on the issue. 

Crompton Greaves bags $26 million contract from Indonesia

Crompton Greaves, has bagged a USD 26 million(Rs 156 Cr) contract from Indonesia for supplying power equipment. 

"Crompton greaves has sealed a deal with PT PLN (Perusahaan Listrik Negara) Indonesia, for the manufacture and supply of 37 units of power transformers," 

The power transformers will be installed across PT PLN's transmission network, in 36 different substations in Sumatra, Java, Bali, Kalimantan and the Sulawesi islands of Indonesia. 

This project is being funded by IBRD - World Bank, in collaboration with the Government of Indonesia, for the purpose of strengthening Indonesia's power networks. 

Aurobindo Pharma in a legal tangle

Japanese drug maker Shionogi has sued Indian company Aurobindo Pharma in an attempt to stop it from producing the generic version of their drug Doribax.

Aurobindo had filed for an abbreviated new drug application last year seeking FDA?s go-ahead to market the drug in the US, before the patent expires.
The drug is used for anti-bacterial treatment of patients with abdominal or urinary tract infections in an injectable form. The lawsuit was filed at the Illinois Northern District Court, last week. The patent for the drug in the US is due to expire in 2021. It was issued in 2012 by the US PTO.

TCS wins multi-year IT services deal from Virgin Atlantic

IT services firm Tata Consultancy Services TCS signed a multi-year contract with Virgin Atlantic Airways covering private cloud, Infrastructure-as-a-Service (IaaS) and IT support services. 

TCS will provide fully managed services to transform and optimize Virgin Atlantic Airways' IT processes, applications and infrastructure.

TCS  will set up a private cloud for the UK's leading airline and provide services including IaaS, end user services and application support services across the whole of Virgin Atlantic's (VAA) technology landscape.

Tech stocks rescue markets from a Oil led fall

Key U.S. Indices, were seen sliding into the red after Europe led buoyant opening took to a  sliding crude.This  took toll off the makret?s confidence. It was left to the momentum of the tech stock  to pull the indices out of the day?s losses and close with moderate gains.

The intraday volatility also reflects the uncertainty about the monetary policy in Europe, with investors appearing skeptical about the ability of the central banks to combat deflation.

The Dow Jones Industrial Average closed with a nominal gain of 3 points at 17,515. But the closing figures hide the intraday volatility. The blue-chip index had opened higher with a gain of 77 points before plunging into a 165 point abyss to ultimately end the day with a gain of 3 points. 

The story was similar with the S&P 500, which managed to close with a gain of 4 points or 0.18% at 2,023. 

The Nasdaq Composite did better, closing with a gain of 21 points or 0.44% at 4,655. 

Tech names were among the market's best performers, with Apple and Yahoo! both gaining 2.6%. Netflix climbed  2.7% in anticipation of its fourth-quarter earnings report after the bell. Micron Technology jumped 2.4% after an analyst upgraded.

Twitter jumped 0.7% on news that the social network will gain a foothold in India after announcing that it will buy Bangalore-based cellphone marketing company ZipDial for at least $30 million. 

The International Monetary Fund cut its two-year forecast for global growth to 3.5% in 2015 and 3.7% in 2016, lowering both by 300 basis points. The organization did see strength in the U.S. economy, though, raising its forecast for 2015 by half a percent to 3.6%.

Oil fell as much as 5 percent on Tuesday after the International Monetary Fund cut its 2015 global economic forecast and key producer Iran hinted prices could drop to $25 a barrel without supportive OPEC action.

Iraqs oil minister Adel Abdul Mahdi said the country was producing 4 million barrels of crude a day and plans to boost exports.

The energy sector was the worst performer  on Tuesday with declines in large-cap oilers such as BP, Exxon Mobil and Schlumberger.

Crude futures for delivery in February fell $2.30, or 4.7%, to end at $46.39 a barrel. 

Gold futures rose more than 1% for their seventh consecutive daily gain. Crude-oil futures settled sharply lower  on Tuesday. 
Ten-year rallied but trimmed initial gains. The yield declined by 1.2 basis points to 1.803% at the close. The yield on the benchmark debt has steadily declined over the past 12 months.

Chinas  gross domestic products  expanded 7.4% last year, beating market expectations of 7.2%. Still, that marked the slowest rate of growth since 1990 for the world?s second-largest economy. Meanwhile, European equities traded near a seven-year high ahead of an expected unleashing of a sovereign-bond-buying plan by the European Central Bank when policy makers meet on Thursday.

Chinese stocks rose nearly 2% after Monday?s sell off and Japan?s Nikkei Average closed 2.1% higher, its strongest percentage gain in a month.

Samsung shares were unchanged  on Tuesday after the Seoul-based company said it is considering a stock split to appease regulators and shareholders. Shares currently traded on the Korea Exchange for more than $1,200 each and the company boasts a weighting of 16.7% on South Korea's index.

After Hours

Netflix shares soared 12% in  an aftermarket trade, after profits surged past estimates and provided an upbeat outlook for net subscriber additions.

Delta Air Lines jumped 7.3% after the company beat estimates,reporting fourth-quarter revenue of $8.24 billion.

Shares of Halliburton  rose 1.8% after the company reported better-than-expected results but warned that 2015 could be a challenging year for the oil-field services company, which is planning to acquire Baker Hughes .