MUMBAI: Equities are likely to extend losses on Friday tracking overseas declines. However, stock-specific action is expected on the back of
“Nifty witnessed profit booking after seeing a 2.7% rally in the last two days. Reliance Industries which gave a positive signal in Wednesday’s session was down 3% on Thursday due to which we saw huge pressure on the Sensex. The intermediate rally which started from the lows of 4,675 is still intact unless Nifty breaks below 4,825 on the closing basis.
The daily RSI and MACD are still in a positive territory indicating that this positive uptrend will continue. Strong support is seen at 4,860-4,825 and stiff resistance at 4,920 - 4,950 levels. Nifty is currently in the tight trading band of 4950-4800 and unless we see a break of this range, markets will remain volatile with a positive bias,” said Nirmal Bang Securities.
US stocks rose for a third straight day on Thursday as investors viewed company results and manufacturing data as evidence the economic rebound will continue. Meanwhile, index futures tumbled after the Federal Reserve announced it was raising the discount rate that it charges banks for emergency loans.
The Dow Jones Industrial Average rose 83.66 points, or 0.81 percent, to 10,392.90. The Standard & Poor's 500 Index added 7.24 points, or 0.66 percent, to 1,106.75. The Nasdaq Composite Index gained 15.42 points, or 0.69 percent, to 2,241.71.
As a result, Asian stocks declined sending the Nikkei down 0.12 per cent and Topix down 0.07 per cent. Kospi dropped 0.08 per cent and Straits Times fell 0.2 per cent.
Back home, markets ended a choppy session on a weak note Thursday, taking cues from subdued global peers. Profit booking in index heavy-weight Reliance Industries put pressure on indices. Traders also took some profit home near resistance levels after a two-day rally.
Bombay Stock Exchange’s Sensex ended at 16327.84, down 101.07 points or 0.62 per cent. The index touched an intra-day low of 16287.17 and high of 16452.51.
National Stock Exchange’s Nifty closed at 4887.75, down 26.25 points or 0.53 per cent. The broader index hit a low of 4873.70 and high of 4922.05
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4800 level seen crucial for Nifty
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Heard on Street: Albula laps up Adani Power
Why are institutions so bullish on
When an initial public offer (IPO) that is considered expensive gets oversubscribed, conspiracy theories usually follow the talk about the ‘real reasons’ behind the success. Such theories have been doing the rounds in the market, following the IPO success of one such developer recently. Grapevine has it that some of the leading investors in this issue were offered apartments at discounted rates to the market for subscribing to the IPO.
A robust subscription to an issue in the qualified institutional investors category is key to issuers and bankers for attracting the interest of retail investors, who usually look up to this category for cues to invest in an IPO. Such theories are not without reasons. When investors have been dumping shares of most leading developers, which has resulted in the realty index underperforming the benchmark since October, critics ask why these institutional investors are so bullish on realty public issues.
Albula laps up Adani Power as it reshuffles portfolio
The sluggish movement in Adani Power shares after the listing may have caused concern among its retail shareholders, but some investors still sense investment opportunity in the company, going by the trading pattern in the stock in the current market. On Wednesday, a
Sebi-registered FII sub-account Albula Investment Fund bought 43 lakh shares at Rs 108, around 8% higher than the price at which the company had come out with its public issue last year. According to brokers, purchases could be part of a portfolio reshuffling whereby a fund sells high-priced stock to buy a relatively cheaper one, a strategy mostly seen in volatile market conditions. Adani Power closed 1.1% down at Rs 107 on Thursday.
ICICIdirect gets go-ahead for digital KYC
Even as mutual fund distributors are grappling with the execution of the recent Sebi fiat on know your client (KYC) norms, one of the largest online distributors of mutual fund products, ICICIdirect, has been given the go-ahead for an electronically-scanned KYC. It may be recalled that mutual fund distributors had some time ago mooted a central bureau of registry for all KYC documentation.
The distributors have also been lobbying for an electronic
or digital KYC till such time a comprehensive system is in place. The rationale being that this would bring down the volume of paper in the system that would otherwise be generated if the distributors were to send a copy of all supporting documents to the AMCs with retrospective effect ie from 1999 as is the Sebi directive.
(Contributed by Nishanth Vasudevan, Vijay Gurav & Deeptha Rajkumar)
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Daily News Roundup - Feb 19 2010
Surprise on the Street!
Rural Electrification Corporation FPO
Polaris Software Ltd
ICICI Bank
Tata Steel
HDIL
Hexaware Technologies
Reliance Industries Ltd
Src: ET, DP Blog etc