VantageTrade Eagle Eye: Nifty and Sensex flat, Wipro down on poor results
The Indian ended 0.50% up in yesterday’s trading session. Buying pressure was observed in IT stocks. Better-than-expected quarterly result by TCS posted on Monday and positive expectation from Wipro result which is scheduled for today were some of the major reasons for gains in IT stocks. Selling pressure was visible in telecom stocks, due to concerns that the increase in spectrum reserve price proposed by the Telecom Regulatory Authority of India may result in huge capital expenditure for the telecom operators. Nifty ended 5,221.70, up 21.10 points, or 0.41 per cent. It touched an intraday high of 5,232.35 and a low of 5,180.35. Sensex ended at 17,200.88, up 104.20 points, or 0.61%. It touched an intraday high of 17,247.53 and a low of 17,046.72.
US stocks rose overnight after firm earnings from big manufacturing companies. However the session finished mixed as investors’ didn’t want to take any significant moves ahead of Federal Reserve's monetary policy announcement due today. The Dow Jones industrial average gained 74.39 points, or 0.58%, to close at 13,001.56. The Standard & Poor's 500 Index rose 5.03 points, or 0.37%, to 1,371.97. But the Nasdaq Composite Index slipped 8.85 points, or 0.30%, to 2,961.60.
Asian shares opened higher today following positive cues from USA, however key central bank meetings this week make traders cautious. Japan's Nikkei 225 index was trading 0.7% higher at 9,536.62 and Hong Kong’s Hang Seng index was trading higher at 20,686.12, up 0.05%. South Korea's Kospi index was trading 02% lower at 1968.45. China’s Shanghai index was trading at 2391, up 0.1%.
Nifty and Sensex opened with negative bias today as players squared off their positions ahead of April’s expiry session and following the dull trade in Asian bourses . Gains in metals, auto and healthcare were offset by losses in technology and realty. Nifty opened 0.45 points down at 5,222.20 and Sensex started up 18.25 at 17,225.54.
Wipro stocks is trading more than 7% down after the company roughly met expectations with a 7.7% rise in quarterly net profit, and forecast muted revenue growth for its key IT services unit due to the fragile global economy. However, Sesa Goa jumped 2.4%post fourth quarter numbers.
Other Economic and Political News:
- Government to deregulate diesel prices: Finance Ministry
- Government disburses Rs.3.93lakh cr farm credit in Apr-Jan
- Retrospective change in Income Tax Act may yield Rs.40,000cr
- SC refuses to grant 400 days to Centre for license auction
- Lupin to set up new plant at Nagpur, invests Rs.400cr in 5 yrs
- Sun gets USFDA nod for schizophrenia drug
- CCI fines United Phosphorus Rs.252cr
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VantageTrade Eagle Eye: Markets range bound ahead of April expiry
The Indian markets ended the week on negative note. It witnessed intensive selling pressure in capital good, power & realty stock as investors were booking profits after four days of gains. A small buying activity in the afternoon helped markets to get to Green terrains and reach intraday highs. However, new tax proposed on FII investments caused the markets to tank 1%. Sensex ended at 17,373.84, down 129.87 points, or 0.74%. It touched an intraday high of 17,519.88 and a low of 17,231.34. Nifty closed at 5,290.85, down 41.55 points, or 0.78%. It touched an intraday high of 5,336.15 and a low of 5,245.45. Markets managed to finish the trading week up, Nifty 1.60% up and Sensex 1.63% up.
On Friday, US stocks closed higher led by better-than-expected earnings of companies like McDonald’s, Microsoft and General Electric. Strong German business data a deal to fight the Euro zone debt crisis also lifted the markets. The Dow Jones industrial average rose 65.16 points, or 0.50 percent, to 13,029.26. The S&P 500 Index gained 1.61 points, or 0.12 percent, to 1,378.53. The Nasdaq Composite dropped 7.11 points, or 0.24 percent, to 3,000.45.
Asian shares are trading lower today in spite of positive news from HSBC that moved away fears about slowdown in world’s second largest economy. Investors are awaiting key events this week. Japan's Nikkei 225 index was trading 0.03% lower at 9,558.62 and Hong Kong's Hang Seng index was trading lower at 20,867.12, down 0.7%. South Korea's Kospi index was trading 02% lower at 1970.45. China's Shanghai index was trading at 2401, down 0.2%.
Indian markets also edged lower on weak Asian cues. Nifty opened 13.45 points down at 5,277.40 and Sensex slipped 26.08 points and started at 17,347.76. At 11.00am markets were trading higher led by gains in Tata Consultancy Services and Reliance Industries and banking stocks on hopes the Reserve Bank of India would take measures to enhance liquidity.
Other Economic and Political News:
- Government spending on projects hits all-time high
- Government clears 22 FDI proposals worth Rs.586cr
- FY12E exports up 21% at US$303.7bn, trade deficit at record US$184.9bn
- Cabinet unlikely to consider FDI in aviation till May-end
- SC allows firms to resume work in Karnataka mines
- Orissa to fast-track renewal of mines under 'deemed extension'
- Reliance Retail changes strategy looking at evolving markets
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VT Case Study: Infosys Technologies Ltd.
Infosys Technologies Ltd., the Indian global technology services company with 64 offices and 68 development centers in India and abroad. The company provides business consulting, technology, engineering and outsourcing services to help clients in over 30 countries.
The company was scheduled to announce its fourth quarter of fiscal 2012 results. Brokers were expecting the company to have revenues equal to Rs 9,391-9,412 crore and growth guidance exceeding Nasscom’s guidance of 11-14%. They maintained the BUY rating for the stock.
However, the situation was other way around on VantageTrade. On 10th April, 3 days before posting the results by Infosys Technologies Ltd., it indicated that the trend of the stock is down at the price of 2,759.80.
After 3 days, on Friday 13th, the company released the results that were below market expectations, with guidance being the most disappointing factor. The company projected it to be 8-10% against expected 12-15%. After that information the shares of Infosys Technologies fell down more than 12% and are still trading much below the pre-result level.
This is only one of the examples of how VantageTrade helped investors avoid losses of 12% or even 40%! Give it a try without any risk with 7-day free trial available at www.vantagetrade.com.
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