GOOD MORNING!!!
INDICES PARED GAINS AFTER HITTING THEIR HIGHEST LEVEL IN MORE THAN A MONTH. CONCERNS THAT A GLUT IN SHARE SALES MAY SOAK AVAILABLE LIQUIDITY IN THE SECONDARY MARKET PULLED THE MARKET OFF THE HIGHER LEVEL. INDEX HEAVYWEIGHT RELIANCE INDUSTRIES ROSE TODAY AFTER THE FIRM REOPENED RETAIL FUEL OUTLETS. BANKING AND FMCG STOCKS GAINED. BUT REALTY STOCKS FELL. THE MARKET BREADTH TURNED WEAK, EASING FROM A STRONG BREADTH IN EARLY TRADE. THE MARKET RECOVERED AFTER FALLING INTO THE RED FOR A BRIEF PERIOD IN EARLY TRADE. THE MARKET EXTENDED GAINS LATER. ROLLOVER IN NIFTY FUTURES WAS ABOUT 54% AT THE END OF TUESDAY'S (24 NOVEMBER 2009) TRADING. ROLLOVER IN MIN NIFTY FUTURES WAS ABOUT 33%. THE MARKET WIDE ROLLOVER WAS ABOUT 48%. IN INDIVIDUAL STOCKS, HINDUSTAN UNILEVER, MARUTI SUZUKI, POWER GRID CORPORATION, RELIANCE POWER AND BHARAT HEAVY ELECTRICALS (BHEL), HAVE WITNESSED HIGH ROLLOVER. CONCERNS THAT A GLUT IN SHARE SALES MAY SUCK LIQUIDITY FROM THE SECONDARY MARKET PULLED THE MARKET OFF THE HIGHER LEVEL. MORGAN STANLEY EXPECTS INDIAN FIRMS TO RAISE ROUGHLY $70 BILLION THROUGH SHARE SALES OVER THE NEXT THREE YEARS, MORGAN STANLEY'S INDIA COUNTRY HEAD NARAYAN RAMACHANDRAN SAID AT AN INVESTMENT SUMMIT ON WEDNESDAY, 25 NOVEMBER 2009. STAKE SALES IN STATE-RUN FIRMS WILL ACCOUNT FOR $10-$15 BILLION OF THAT, RAMACHANDRAN SAID. THE UPCOMING AUCTION OF THIRD-GENERATION MOBILE SPECTRUM WILL ALSO SPUR POTENTIALLY BILLIONS OF DOLLARS IN EQUITY RAISING, ALTHOUGH NOT NECESSARILY FROM THE PUBLIC MARKETS, HE SAID. INDIAN COMPANIES HAVE RAISED ABOUT $18 BILLION IN EQUITY THUS FAR THIS YEAR TO REPAY HIGH-COST DEBT OR TO FUND EXPANSION PLANS. LAST YEAR, INDIAN FIRMS RAISED $7.2 BILLION IN EQUITY. MEANWHILE, THE FINANCE MINISTRY ON TUESDAY CONSTITUTED A WORKING GROUP TO SUGGEST WAYS OF RATIONALIZING EXISTING REGULATIONS RELATING TO FOREIGN PORTFOLIO INVESTMENTS, IN ORDER TO ENCOURAGE FOREIGN INVESTMENT INTO THE COUNTRY. THE GROUP WILL REVIEW THE LEGAL AND REGULATORY FRAMEWORK TO SIMPLIFY RULES RELATED TO OVERSEAS INVESTMENT IN THE FORM OF FOREIGN INSTITUTIONAL INVESTMENT (FII), FOREIGN VENTURE CAPITAL INVESTMENT (FVCI), PRIVATE EQUITY AND NRI INVESTMENT, ACCORDING TO NOTIFICATION ISSUED BY THE FINANCE MINISTRY. THE PANEL WILL FURTHER STUDY ARRANGEMENTS RELATING TO USE OF PARTICIPATORY NOTES (PN) AND SUGGEST ANY CHANGES REQUIRED TO INCREASE TRANSPARENCY. THE COMMITTEE, WHICH WILL SUBMIT ITS REPORT WITHIN FOUR MONTHS, WILL IDENTIFY CHALLENGES IN MEETING THE FINANCING NEEDS OF THE LNDIAN ECONOMY THROUGH THE FOREIGN INVESTMENT. IT WILL SUGGEST SPECIFIC SHORT, MEDIUM AND LONG TERM LEGAL, REGULATORY AND OTHER POLICY CHANGES. THE GROUP WILL FURTHER REVISIT THE ROLE OF TRANSACTION TAXES. CAPITAL MARKET TRANSACTIONS ARE SUBJECT TO SECURITIES TRANSACTION TAX (STT) AND ALSO A 15% SHORT-TERM CAPITAL GAINS TAX. THERE IS DEBATE IN THE POLICY ESTABLISHMENT AS TO WHETHER THE STT SHOULD BE CONTINUED AND WHETHER ORDINARY INCOME AND CAPITAL GAINS NEED TO BE TAXED AT DIFFERENT RATES.
TODAY MARKETS WOULD BE HIGHLY VOLATILE WITH FNO CONTRACT EXPIRING FOR THE MONTH OF NOVEMBER. IF NIFTY TRADES BELOW 5111 THEN WOULD GO DOWN TO 5070 AND BREAK BELOW THIS LEVEL WOULD TAKE NIFTY TO 5032 AND ON THE UPSIDE IF NIFTY TRADES ABOVE 5111 THEN WOULD TAKE NIFTY TO 5159 AND TRADING ABOVE THIS LEVEL WOULD TAKE NIFTY TO 5277 IN A VERY SHORT TERM, ANY CLOSE ABOVE 5159 IS CONSIDERED TO BE BULLISH AND ANY CLOSE BELOW 5066 IS CONSIDERED TO BE WEAK.
BUY PSL ABOVE 150.05 TGT 155/159/165**
SELL RELINFRA BELOW 1053 SL 1066 TGT 1045/1032
SELL RELIANCE CAP BELOW 850 SL 856 TGT 843/837
SELL DLF BELOW 360 SL 364 TGT 354/351
SELL JSWSTEEL BELOW 1000 SL 1014 TGT 986/970
SELL TATASTEEL SL 566.8 TGT 548/539
SELL JINDALSTEEL BELOW 693 SL 702 TGT 679/672
POSITIONAL TRADES
BUY SHARP INDIA TGT 100%
