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We have cautioned in last and earlier letter that market is heading towards south. Pullback should be used for creating fresh shorts. But one should have deep pocket to it as market will show huge volatility.
Cut down your long position. Cash is King.
NIFTY- 4,929
CRUDE OIL-Rs 5,157/ barrel
GOLD-Rs 27,318/ 10 gram
Rs/$-Rs 53.68
MARKET ROUND UP:
30 share Sensex dropped 539 points or 3.2% to close at 16, 929 during the week ended 11th May, 2012. On the other hand Nifty tumbled by 158 points or 3.11% to close at 4929 during the same period.
Global cues were not supportive as outcome of the Greece election is threatening the Euro existence. Also France Hollande defeated Sarkozi in the Presidential election. These two events marred the global market.
On domestic front clarity on GAAR on Monday gave relief rally at the end of the trading session but the gain was surrendered next day. Market slipped below all the major support levels. IIP data on Friday also showed industrial growth is slowing down in March. March IPP contracted by 3.5%.
Economic:
Domestic:
India`s industrial production contracts 3.5% in March
Exports grow 3.2% in April, trade deficit down
RBI asks exporters to sell 50% of FX holding to support rupee
FinMin extends income tax exemption for pvt PF Trusts till Mar 13
Indian economy estimated to register a growth of 7.5% this fiscal
International:
China`s inflation eases in April
Risk appetite struggles to bloom as data from Eurozone chills investors- EPFR
Global economic growth slides to 5-month low in April
UK index of production falls by 2.6% in March 2012
Sharp growth slowdown in global service sector
UK economy will pick up through 2012- CBI
Stocks in News:
New Orders
Ramky Infra bags orders worth Rs 12.49 bn
Vakrangee bags Rajasthan CSC project worth Rs 7.50 bn
Suzlon bags order worth Rs 3.05 bn from GMDC
Elecon Engg secures LoI for Rs 2.72 bn order
Aban Offshore bags order worth Rs 1.4 bn
McNally Bharat bags order worth Rs 1.38 bn
Suzlon bags 39 MW order in Poland
Micro Tech bags export order for its vehicle security product
L&T Group bags Saudi Chemicals contract
Pharma
Glenmark Generics gets USFDA approval for Lamotrigine tablets
Strides receives US FDA approval for Acetazolamide
Other News
Lakshmi Vilas Bank signs MoU with TCS
Suzlon crosses 1,000 MW in Jaisalmer
Mind Tree inks strategic pact with KPN
Eros Int`l acquires Tamil theatrical rights of Maatran film
BoI completes acquisition of 51% stake in Bharti Axa MF
Lanco Hills gets relief from SC for Lanco Hills project
Mahindra Satyam, Alfresco extends partnership to Middle-East
Coal India inks FSAs with 13 power units so far
RIL raises USD 2 bn in 13-year loan
PTC India inks pact for stage 1 of Simhapuri power project
Mahindra Satyam in alliance with US-based Galorath
MAJOR SECTORAL GAINERS:
No major sectoral gainers during the week.
MAJOR SECTORAL LOSERS:
CONSUMER DURABLE |
-0,10% |
CAPITAL GOODS |
-1,10% |
FMCG |
-2% |
AUTO |
-2,40% |
OIL & GAS |
-2,50% |
BANKING |
-4% |
REALTY |
-4,10% |
METAL |
-4,30% |
IT |
-4,40% |
POWER |
-4,70% |
MAJOR GAINERS IN BSE A CATEGORY:
BPCL |
6,90% |
PETRONET LNG |
5,80% |
CADILA HEALTH |
4,90% |
MAJOR LOSERS IN BSE A CATEGORY:
IRB INFRA |
-28,90% |
GMR INFRA |
-21% |
UNITECH |
-19,60% |
Eyes will be set on the certain US economic data releases are:
Monday
No major data to be released.
Tuesday
Consumer Price Index
Retail Sales
Empire State Manufacturing
Business Inventory
Housing Market Index
Wednesday
Housing Starts
IIP
EIA Petroleum Status Report
FOMC Minutes
Thursday
Jobless Claims
Bloomberg Consumer Comfort
E- Commerce Retail Sales
Leading Indicators
EIA Natural Gas Report
Friday
No major data to be released.
FII TREND DURING THE WEEK:
(Figures in Crore)
07.05.2012 |
512,5 |
08.05.2012 |
-592,9 |
09.05.2012 |
-369,3 |
10.05.2012 |
-357,2 |
11.05.2012 |
342,4 |
FII were net seller during the week to the tune of Rs 464.5 crore.
Fundamental Picks of the Week:
Dish TV Target Rs 72
Mercator Lines Rs 25
IFGL Refractory Target Rs 60
CLOSE WATCH FOR WEEK AHEAD:
Euro Zone Political development especially Greece.
Inflation numbers
Government policies and reform process
Rupee dollar exchange rate
TECHNICALS:
S3 |
S2 |
S1 |
NIFTY |
R1 |
R2 |
R3 |
4,710 |
4,805 |
4,870 |
4,929 |
5,020 |
5,110 |
5,180 |
All major support levels have been broken by the Nifty. Nifty is in the medium term bearish zone. Some technical pullback could be expected but that too will provide temporary relief.
This week Nifty broke important support of 5, 080 which happens to be 50% retracement of the recent rally. This also indicates of the bearish trend.
CONCLUSION:
Any pull back in the Nifty should be utilized for fresh shorting and one should use this as an opportunity to exit the long position. We have in the earlier letter cautioned the investor that market is heading towards 10-15% correction.
Time is coming when one could look for investment opportunity.
SHARETIPSINFO Team
www.sharetipsinfo.com
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