VantageTrade Eagle Eye: Nifty and Sensex still in Red

Nifty and Sensex finished 0.60% down for fifth straight day yesterday as increase in April inflation, which was declared to be at 7.23% by government against the street expectations of 6.7%.  The increasing political crisis in Greece and declining Chinese economy influence negatively global sentiments. The markets were trading negatively throughout the whole post noon session. They recovered marginally in the last hour but it was not enough for markets to close in Green.  Sensex ended at 16,199.23, down 93.75 points, or 0.58 percent. It touched an intraday high of 16,390.33 and a low of 16,124.82 today. Nifty closed at 4,900, down 28.25 points, or 0.57 percent. It touched an intraday high of 4,957.20 and a low of 4,874.50 today. The VantageTrade target on Nifty is set at 4,808.25, and Sensex target is at 16,119.30. The previous targets of 4,917.55 and 16,469.70 respectively were reached during 4 days.

Selling pressure was observed in banking stocks as the increase in inflation doused hopes for policy rate cuts by RBI in the nearest future.

US stock declined yesterday on global cues. The S&P 500 finished lower for the fourth day to close at its lowest level since February.  The Dow Jones industrial average dropped 125.25 points, or 0.98 percent, to close at 12,695.35. The Standard & Poor's 500 Index lost 15.04 points, or 1.11 percent, to 1,338.35. The Nasdaq Composite Index fell 31.24 points, or 1.06 percent, to 2,902.58.

Yahoo Inc replaced its CEO for the third time and gave three board seats to a hedge fund led by Daniel Loeb, putting him in a strong position to influence strategy at the struggling Internet company. The stock advanced 2 percent to $15.50.

Asian shares fell on today as investors prefer to stay on the sidelines and sought refuge from the political turmoil fuelling fears of Greece's exit from the euro.  Japan's Nikkei 225 index was trading 1.2% lower at 8,864.75 and Hong Kong's Hang Seng index was trading higher at 19,754.12, up 0.10%. South Korea's Kospi index was trading 1.5% lower at 1885.45. China's Shanghai index was trading at 2364, down 0.6%.

Sensex and Nifty opened low in line with Asian peers as bulls are staying sideline.  Nifty opened at 4,869.85, down 30.15 points and Sensex started 52.33 points down at 16,146.9.

The rupee pulled back after breaching the below 54 per dollar level in opening trade. According to dealers, the RBI seems to have sold dollars near the 54.15 levels. The partially convertible rupee was at 53.68, up 28 paise against its previous close of 53.97.

Shares of L&T stayed higher today due to strong growth forecast. The stock shot up 5.2% today as the company expects 15-20% growth in top line and order inflow for FY13.

Software services provider Infosys and Wipro gained 0.7-1.2% due to depreciating rupee.

Power stocks may continue buzzing as the government has informed that the projected power demand of 1,354.87 billion units by 2017 will be met as 85,000 MW capacity addition is planned during the 12th five-year plan. The 18th Electric Power Survey (EPS) report estimated the energy requirement in the terminal year of 12th Plan period (2012-17) at 1,354.874 billion units.

The result season is coming to an end. Aditya Birla Nuvo, Cummins India, Deccan Chronicle, Essel Propack, Gammon India, India Infoline, MMTC, Pantaloon Retail, Patel Engineering, Reliance Media, Shree Cement, Sterling Biotech, Unitech and Videocon Inds are among the many to announce their results today.

Other Economic and Political News:

-        Government notifies free sugar exports

-        Inflation rises to 7.23% in April, vegetable prices shoot up

-        Mumbai home prices fell 9.1 % between March 2011-12: Knight Frank

-        No plan to revamp Food Corporation India: Government

-        Oil slides on euro zone, China fears

-        Ashok Leyland Nissan inks Rs.4,150cr MoU with Tamil Nadu government

-        Bhel bags Rs.380cr order for gas-based plant in Rajasthan

-        Jain Irrigation announces buyout of 100% stake in JV firm

-        Moody's downgrades ICICI, HDFC, Axis banks, LIC

 

 

 

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