Market and Stock Views

RIL has plans for telecom, power, pharma & finance

Bull's Eye: Bharti Airtel, JSPL, TVS Motors, HUL

Top 5 picks | Mid-term picks


Weekly Market, Sectoral and Stock Perspective – Technicals

Derivative strategies: BHARTIARTL, TATAMO, BPCL


TECHNICAL ANALYSIS: Index Outlook: Investors kept guessing
Market was at its whimsical best last week. It declined in the first two sessions, taking the Sensex to the low of 16,560. But just when investors were about to throw in the towel, it reversed higher exasperating all those who were betting on ...

STOCKS: DB Corp: Buy
Investors with a two-year horizon can consider buying the shares of DB Corp, publisher of the widely read Hindi newspaper Dainik Bhaskar, given its robust prospects for expanding advertising revenues through pricing ...

STOCKS: ING Vysya Bank: Buy
Investors with a two-three year horizon and a moderate risk appetite can consider buying the ING Vysya Bank stock. The bank is an old generation private sector one in which ING, a global financial major, owns 43.72 per cent stake. While the ...

STOCKS: Hindustan Zinc: Buy
Investors can consider buying the shares of Hindustan Zinc, subsidiary of Sterlite Industries, given the company's dominant position in domestic user industries. This is supported by the fact that steel production volumes are beginning ...

STOCKS: Sasken Communication Technologies: Buy
Investors with a two-year horizon can consider buying the shares of Sasken Communication Technologies (Sasken), a telecommunications software provider. Significant improvement in key operating and cost metrics and a general pick-up in the ...

TECHNICAL ANALYSIS: Query Corner: Ranbaxy in an intermediate-term uptrend
Kindly give your view about Nagarjuna Construction bought at Rs 155 and JK Tyre bought at Rs ...

TECHNICAL ANALYSIS: Pivotals: Reliance Industries (Rs 1,046.2)
RIL declined to the intra-week low of Rs 995 on Tuesday but Friday's spurt helped the stock erase all the losses to end the week marginally higher. The stock completed one-leg of the down-move from the April peak at the low of Rs 976. It has ...

TECHNICAL ANALYSIS: Index Strategy: Consider covered call on Nifty
After the roller coaster ride of last week, there still doesn't appear to be any semblance of direction emerging ...

TECHNICAL ANALYSIS: Sizzling Stocks: Eicher Motors (Rs 921.7)
Eicher Motors revved up suddenly on Friday as news of its joint venture with Volvo, VE Commercial Vehicles, trebling its capacity to become the largest commercial vehicle engine manufacturer in the country hit the market. The stock accelerated ...

TECHNICAL ANALYSIS: Stock Strategy: Consider initiating long in GMDC
GMDC (Rs 125): Arresting the downtrend, the stock recovered sharply in last month from its support level. It now finds strong support at Rs 113, while its immediate resistance is at Rs 130. A close above Rs 130 could lift the stock towards ...




Src: ET, Businessline and etc

Mukesh Ambani's RIL back in telecom with a bang

RIL reconnects with telecom after 5 years

India's largest private firm to buy 95% in Nahata-owned Infotel for Rs 4,800 crore; to get broadest BWA footprint.

Reliance Industries Ltd (RIL) will buy Mahendra Nahata-promoted Infotel Broadband Services for Rs 4,800 crore, marking the re-entry of India's largest private sector firm into the booming telecom market.

RIL Chairman and Managing Director Mukesh Ambani was forced to hand over the telecom business to his brother Anil when they broke up the Reliance empire five years ago. The acquisition of Infotel became possible after the two brothers ended a non-compete accord a month ago.

Minutes after the acquisition announcement, Anil Ambani, who controls the country's second-largest telecom company, Reliance Communications, welcomed RIL's entry into telecom.

Infotel is a two-year-old entity, with the stated objective to roll out WiMax across all circles in India. RIL said it would buy 95 per cent of Infotel, which hours earlier became the only company to buy nationwide licences to offer wireless broadband internet services.

For the time being, RIL will go for only the lucrative corporate bandwidth market, or the business of selling telecom and internet services to companies rather than individuals.

Unlisted Infotel is the only firm to win broadband spectrum in all 22 zones in India in an auction that ended today. The firm is paying Rs 12,848 crore for the spectrum and sources familiar with the developments said RIL would pay this fee.

Nahata said the company was in talks with RIL before the BWA auction.

RIL will invest by subscribing to fresh equity capital at par to be issued by Infotel. The RIL share gained 3 per cent today to close at Rs 1,046.25 on the Bombay Stock Exchange.

While third-generation (3G) spectrum allows high-speed internet access and data transfer on mobile phones, broadband spectrum would enable firms to provide high-speed wireless data links with better coverage than fixed-line broadband.

RIL said it saw the broadband opportunity as a new frontier of the knowledge economy, in which it could take a leadership position and provide India with an opportunity to be in the forefront among the countries providing world-class 4G network and services. A single 20-MHz TDD spectrum, when used with LTE (Long Term Evolution), has the potential of providing greater capacity when compared to existing communication infrastructure in the country, the company said.

RIL said its initiative will usher in a wireless broadband revolution across the country and it planned to create state-of-the-art technology using an asset light strategy. RIL will forge several strategic relations with a host of leading global technology players, service providers, infrastructure providers, application developers, device manufacturers and others to leapfrog India to the 4G revolution.

Mukesh Ambani termed the deal as the next wave of value creation opportunity in the wireless broadband space.

RIL has re-entered telecom at a time when the sector is going through a lot of pain in terms of reduced voice rates. "The management seems to have made up its mind to enter the sector. The valuations in the sector are at their lowest. We might see Reliance Communications and Reliance Industries go for a merger or some kind of association in one or two years down the line," said S P Tulsian of sptulsian.com.

Broadband penetration in India is as low as 1 per cent. While some analysts see this as an opportunity, some say monetisation from this service will be an uphill task. "WiMax, as of now, is not a proven technology across the world. There is no substantial ecosystem which has been developed in India as well. It will take a few months for RIL to start services and we will know their strategy only after they offer their services," said Harit Shah, Analyst at Karvy Stock Broking.

Jagannadham Thunuguntla, equity head of SMC Capitals, said it is common to pay a premium in an acquisition.

"We do not know the nuances of the deal. Sometimes, the right target is not available. The amount of equity which is available for acquisition might have been an issue. There are a number of ifs and buts in a deal," he said.

RIL with a turnover of Rs 2,00,400 crore had a cash profit of Rs 27,933 crore, net profit of Rs 16,236 crore and net worth of Rs 1,37,171 crore as of March 31, 2010. The company, experts said, has the financial muscle to venture into a new sector.

RIL has laid an optical fibre cable (OFC) network to connect its refineries, pipeline network, retail outlets, petrol pumps and logistics business — similar to Gailnet or Railnet.

However, there is a huge amount of unlit (unused) fibre with the company which it could utilise to offer broadband services such as Internet Protocol TV (IPTV). It could also be used to enter the long-distance telephony segment and for relaying entertainment services.

However, the company, till now, did not have a "last mile" solution which can help it enter the customers' homes, hence it would have had to sell bandwidth to internet service providers (ISPs).

Hence, a logical way of entering the telecom sector for Mukesh Ambani at this late stage was to either buy out a broadband wireless access (BWA) spectrum winner, or acquire an existing 2G player. It has done so with Infotel now, analysts said.

Reliance Industries buys 95% stake in Infotel Broadband for Rs 4,800 cr

RIL's redial may be led by Manoj Modi

RIL entry may trigger a tariff war in broadband

Telecom: Will RIL, RCom compete or collaborate?

RIL pulls off a coup to buy BWA champion Infotel

Src: ET and Smartinvestor

Euro Recovery Soothes Nerves

Euro Recovery Soothes Nerves

Our markets are likely to open sharply higher on the back of buoyant US markets, which were tracing the gains of the Euro. However, they are likely to run into resistance in the 5150-5170 ranges. How they perform, thereafter will be a function of the IIP data that will be on tap today.

A rebound in the Euro put the Dow back on the 10,000 as the German Supreme Court rejected efforts to block Germany from taking part in guarantees that are critical to the stabilization mechanism aimed to strengthening the euro.

The Dow surged 273 points at 10,173 with the S&P 500 adding 31 points at 1087, and the NASDAQ surging by 60 points to close at 2219.

The euro continued its recent climb, regaining the 1.2100 levels for the first time in a week after trading as low as 1.1877 on Monday.

Strong demand for Spain’s €3.9 billion auction of three-year government bonds and the Bank of England holding its base interest rate at a record low of 0.5% for the 16th consecutive month also helped matters on a day when energy stocks rebounded and initial weekly jobless claims fell by 3,000 in the US.

News that the SEC stepped up its examination into a collateralized debt obligation by Goldman Sachs that wasn't part of the civil fraud charges previously filed against the firm, made the stock register a new 52 week low.

Meanwhile, Crude for July delivery gained $1.10, to settle at $75.48 a barrel. Gold contract settled $7.70 lower, at $1,222.20 an ounce. The dollar traded lower against a basket of currencies, with the dollar index down by 1%.

Coming back to our markets, we have the crucial IIP data today. The market men expect a 14% rise. If that happens that will be an improvement on the last number. Ever since the data peaked in December 2009, it is on a steady decline.

As far as the US markets go, we are not reading too much into the 273-point rally in the Dow. A study of the benchmark since the year 2000 reveals that whenever the Index rises more than 200 points, the Index falls on an average 15 points the next day. For the current year, there have been 3 other instances and it has fallen on an average 50 points the next day. You cant really read too much into this and is not something which is extra ordinary. The chances of a reversal are higher the next day.

While the Nifty’ surge may be capped in the region of 5150-5170, the mid-caps could do well. Road stocks like IRB or Gujarat Apollo may do well on the back of new projects being sanctioned. Indian Hotels and Prakash Industries look well placed.

Disclosure : No holdings or trading positions in stocks mentioned or recommended to clients

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25% float: Cos may have to revise IPO size

Nifty may rise, but resistance seen at 5215

Daily D-Street turnover dips as investors play safe

Heard on the street: Dutchman MF, FIIs

MF, HNIs lap up DRL shares

Kotak Bank seen interested in Karnataka Bank

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TRADING DESK

BANKNIFTY
Current level: 9,346,
Target level: 9,200

The index tested a strong resistance today at around the 9,350-9,375 mark and failed to break it. Several banking majors such as ICICI, SBI and IDBI closed weak. The index could take another plunge sometime tomorrow and may have a downside till around 9,200. Keep a stop loss at 9,375 and go short with an initial target of 9,275. Below that, reset the target to 9,200 and reset the stop loss to 9,300.

BHARTI AIRTEL
Current price: Rs 285,
Target price: Rs 300

The stock could have an upside till around the 300-mark if it passes resistance at 287. It has developed an uptrend alongside volume expansion.

Keep a stop at 279 and go long increase the position between 287 and 290. Start booking profits above 295 and clear the position by 300.

If the scrip drops below 276, it could slide till 260 so, consider a short trade.

RELINFRA
Current price: Rs 1,121,
Target price: Rs 1,165

The stock has reversed from a downtrend and risen on high volumes. The target projection on the basis of the chart patterns would suggest a rise till 1165-1170 levels. But, there's a fair amount of resistance between 1,120 and 1,130, and a significant potential downside. Keep a stop at 1,110 and go long. Increase the position between 1130 and 1,140 and book profits beyond 1,165. If the 1,110 stop is broken, the scrip could react till 1,070.

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HDFC, United Phosphorous

Marico - robust, best pick !

KPIT Cummins - growth via various options

Dish TV - well positioned for growth

Src: ET and HDFCSec, Smartinvestor.in

Derivative and Equity Call

Technical Pick – Indian Oil Corporation


An Over Sold Bounce is Due


Derivative strategies: CUMMINSIND, IDBI, BHARATFORG


Derivative strategies: ACC, PFC, HCLTECH

Technical calls: Cummins India, NB Ventures

Technical Calls: Siemens, Jindal Steel, DLF


Bearish `Island Reversal` in Nifty Future

ET Headline Volatile mkts: Traders advised to buy Options 10 Jun 2010, 0700 hrs IST,HARISH RAO,ET Bureau Investment advisors are asking retail clients to buy Options as a safer strategy to ride out the turbulent phase. Top 5 picks | Mid-term picks | Stocks: Gainers & losers Free-float supply may be a ‘drag’ on stock market Cos back at IPO Street as cash lines begin to choke Cash and bonds will be very dangerous: Marc Faber

Heard on the Street

Trading in KPIT frozen as stock hits upper circuit

Trading in shares of KPIT Infosystems was frozen at the upper end of the 20% intra-day circuit filter, after there were only buyers in the stock. Last week, the company had formed an equal joint venture with Bharat Forge for a hybrid technology designed to improve fuel efficiency of vehicles.

According to a note by domestic broking firm Paid Leave (PL), the joint venture is targeting revenues of Rs 300-500 in FY12, with an operating margin of 15-18%. But PL thinks this is a very conservative estimate. Strangely, PL has assigned an ‘accumulate’ rating to the stock, instead of a full-fledged ‘buy’ rating.

Leading domestic broking house Info Lion is said to have been a big buyer in the stock, though it couldn’t be ascertained if it was making the purchases on behalf of its institutional or non-institutional clients. KPIT shares closed at Rs 129.50 on the NSE, with nearly 77 lakh shares being traded. Less than a fifth of that volume resulted in delivery.

Fatpipe extends IPO bid date on low turnout

The initial public offer of Fatpipe Networks has been extended till Monday due to a low investor turnout. The company has also changed the price band of the issue from Rs 82-85 to Rs 80-85, according to merchant bankers. The issue was subscribed just 0.7 times.

According to brokers, a couple of HNIs and an institutional buyer, who had invested in the IPO, wanted to back out from the bidding process. However, merchant bankers of the issue denied any such incident.

“Investors have not backed out of the issue. The only problem we faced was when one bid came in past the IPO subscription deadline,” said a senior official of Keynote Corporate Services, the banker to the issue.

Outlicensing deal hopes trigger rally in Orchid Chem

Shares of Orchid Chemicals and Pharmaceuticals rose nearly 3% to Rs 144.35 with good volumes on Wednesday. The buzz is that some traders have taken up positions ahead of the company’s press conference on Thursday, anticipating some positive announcement. They are hoping the company may announce an outlicensing deal. When contacted, a senior company official declined to comment on market speculation.

(Contributed by Santosh Nair, Shailesh Menon & Deepali Gupta)

Fortis Healthcare - another fundraising

Daily Market Outlook - June 10 2010

Mahindra and Mahindra - acquisition moves strengthening

Jubilant Foodworks, Hindalco, Sadbhav Engineering

Hero Honda - riding strong, Shoppers Stop - consumer growth powers on

Educomp Solutions Limited - the leader in education

Rakesh Jhunjhunwala Interview - bullish on India

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Tech view: Strength above 5053

As expected the bulls tried to fight back, however, global cues once again played spoilsport. The European markets which weakened in late noon deals, forced our markets to pare gains. The Sensex finally ended with a gain of 40-odd points at 16,658. The NSE Nifty was up 13 points at 5,000.

As things stand, the markets are trapped in an extremely narrow band - within the 20-days and 50-days DMA (Daily Moving Averages). In case of Sensex it is 16,650-16,840 and on Nifty 4997-5053. Longer the markets trade below the short-term moving averages, difficult it would get for them to bounce back. Hence one needs to watch the 20-days DMA as key reference point for future trend.

Today, the Nifty is likely to find support around 4,975-4,955, while face resistance around 5,025-5,045.




TRADING DESK

Yes Bank
Current Price: Rs 279,
Target Price: Rs 292

The stock has seen a correction to a key support. It appears to be in an inter-mediate uptrend. It has the potential to bounce till 290-295 levels in the next upmove, which could be tomorrow. Keep a stop at 276 and go long. Increase the position between 284 and 286, and start booking profits above 290. If the stop at 275 is broken however, the stock could fall till 269 and below that, 263.

Tata Motors
Current price: Rs 728,
Target Price: Rs 710

The stock is seeing heavy selling beyond the 730-mark. It has a likely downside till 705-710 level and it should test support at the top end of that band as a minimum target. Keep a stop at 735 and go short. Increase the position below 720 and reset the stop loss to 724. Clear the position below 710. Note that if 735 is exceeded, the stock could jump to 750. So consider going long if the stop is broken.

Nifty
Current price: 5,000.3,
Target Price: NA

The index is at key support. If its trades below 4,975, it could fall all the way till 4,800. On the upside, there's serious resistance at 5050 and above but if that is broken, a rise till 5,175 is possible. Two option spreads are tempting with a 2 session perspective. A long 5,100c (59) and short 5,200c (25) costs 34 and pays a maximum of 66. A long 4,900p (71) and short 4,800p (49) costs 22 and pays a maximum of 78. The bearspread has the better ratio.

Src: ET, DP blog , Smartinvestor, HDFCSec, Valuenotes and etc

Derivative and Equity Calls

Technical Picks - Stocks

Derivative strategies: ACC, PFC, HCLTECH


Technical calls: Lupin, Asian Paint


Allied Digital: Buy for a target of Rs320


Apollo Tyres: Enters Europe, buy


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TRADING DESK

AXIS BANK
Current Price: Rs 1,226, Target Price: Rs 1,245
The stock has a pattern of short-term correction inside what seems to be a continuing intermediate uptrend. Axis Bank has a continuing pattern of higher lows. It should open weak tomorrow and then pick-up sufficient buying to test resistance at the 1,245-1,250 range. Keep a stop at 1,220 and go long. Increase the position beyond 1,235 and start booking profits beyond 1,245.

DLF
Current Price: Rs 258, Target Price: Rs 275
The stock has hit a key support. If it rebounds from 255 level, a pullback could take it to the 270 level or somewhat higher, till 275. On the other hand, if the 255 support breaks, it could drop till the 235 mark. Keep a stop at 255 and go long. If the stock rises above 262, increase the position and start booking profits beyond 273. If it drops below 255, go short with a stop loss at 260 and a target of 240.

RCOMM
Current Price: Rs 167, Target Price: Rs 155
The stock has started a reaction that could continue till it finds support at around 155. Keep a stop at 172 and go short. Below 162m reset the stop loss to 165 and increase the position. Start booking profits below 157 and clear the position entirely below 156.

(The target price and projected movements given above are in terms of the next one trading session unless otherwise stated)

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Praj Industries Ltd

Potential investors in Reliance Communications

Engineers India

Axis Bank

IndusInd Bank

ITC Limited

UCO Bank

Magma Fincorp

Allahabad Bank

Src: HDFCSEc, Smartinvestor, Valuenotes, DP blog and etc

Heard on the Street

Heard on the Street

Blame it on BoR merger, ICICI Bank sheds 3% Shares of ICICI Bank shed 3% to Rs 842.20 on Monday, leading the decline in banking stocks. According to dealers, a foreign institutional investor, which bought a sizeable chunk in the bank in the past month or so, was a seller on the stock. ICICI Bank has been in news recently after its decision to merge Bank of Rajasthan with itself, a move that was not appreciated by many in the market. Investors fear the move could hurt the bank’s asset quality. PSU insurer buys Essar Oil on price deregulation hopes A large PSU insurance major is believed to have been mopping up shares of Mumbai-based Essar Oil in the past few sessions. Brokers said that the insurance firm was a big buyer in the stock on Monday, though the stock closed 1% lower at Rs 127. According to dealers, market participants were anticipating some positive development on deregulation of fuel price. This could have helped the company in getting some relief in expanding their fuel retailing. The company has recently announced its plans to raise up to $300 million by issue of FCCBs in one or more tranches, on preferential offer basis to promoter company, Essar Energy Holdings to part finance its scaling up of Jamnagar refinery capacity by 25% to 3,75,000 barrels and increasing its complexity. Fairfield gains 14% on delisting hopes Shares of Fairfield Atlas rose 13.9% to Rs 55 on Monday on speculation the recent government rules on minimum public shareholding requirement would prompt the company to consider delisting. Promoters hold 83.91% in the company. Reliance Capital Trustee is one of the key FIs in the company with a 8.46% stake. The buzz is that Fairfield’s promoters are not in favour of diluting their stake in the company for meeting the new rules, while Reliance Capital is unwilling to sell its stake in an open offer, if any. Grapevine has it that Reliance Capital is not ready to tender shares around this level, as its average purchase price of this stock has been ‘much higher’. In 2007, TH Licensing Inc, the company’s promoters, had made an open offer to buy all of public shareholding at Rs 81 per share, but was not successful as Reliance Capital did not participate in the open offer. Contributed by Harish Rao, Apurv Gupta & Nishanth Vasudevan

If market goes below 4950, its a confirmed downtrend: Deepak Mohoni

Mid-term picks of the day

Top 5 picks | Mid-term picks

Sensex takes a knock on global hangover

Wall Street tumbles, S&P's lowest close in 7 months

New 'public float' norms spark MNC delisting fear

BGR Energy Systems

Mphasis

KPIT Cummins

Cox and Kings

GSPL

Rajesh Exports

Tulip Telecom

TV18 Ltd

Onmobile Global

BHEL

Stocks with Public Holding less than 25%

Oil and Gas Sector

Dishman Pharma

Tech view: Global cues hold more weight

TRADING DESK

Next few sessions could be choppy


Src: ET and DP blog and Smartinvestor.in

Euro crisis may dampen market sentiment

Euro crisis may dampen market sentiment

MUMBAI: Shares could weaken on Monday and then trade in a range of around 200 points on the Nifty for the rest of the week, say brokers. The latest bad news from Europe, this time from Hungary, jolted world markets on Friday. US shares tumbled after the unemployment number for May was higher than market estimates. These developments will affect the sentiment for Indian shares, which have had a good run over the past few sessions. Just when it seemed that the sovereign debt crisis in Greece was under control, the new government in Hungary said that its public finances were in a bad shape than estimated and that the country had only a slim chance of avoiding a debt crisis. “Sentiment rather than fundamentals will drive share prices in the short term,” said Apurva Shah, vice-president & head-research, institutional equity, Prabhudas Lilladhar. “India is much better placed than most other economies, but its shares can not be immune to the turmoil in world markets,” he added. Brokers expect foreign funds to persist with their selling-spree should the situation in Europe worsen. In May alone, foreign funds net-sold around Rs 9,700 crore. Technical analysts expect the Nifty to face resistance in the 5150-5175 band, but don’t see the index falling below 4,800 in the near term. The meteorological department’s (Met) prediction of a normal monsoon and expectations of healthy corporate earnings for the current quarter will cushion the fall, market participants said. Benchmark indices will take cues from the Index of Industrial Production (IIP) due this week. Also Read → FIIs shift from equities to debt, buy bonds worth Rs 2,450 cr → IPO-bound companies may take private-equity deals detour → Sebi goes slow on licence to funds from Mauritius → NSE set to launch futures contract in S&P 500 “We will see double-digit growth in manufacturing and the overall industrial growth is expected to be good, because of favourable base effect,” says Sujan Hajra, chief economist, Anand Rathi Financial Services. Investors expect shares of fast-moving consumer goods (FMCG) and pharmaceutical companies to be in demand, as these stocks are relatively steady in a volatile market.

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Top 5 picks | Mid-term picks

New public holding norms to hit pricing of large issues

Analysts' Picks: United Phosphorous, Sun TV, M&M, Punj Llyod

Reliance Communications board clears 26% stake sale

Q4 net profit of 2,700 cos up 94%

Q4 results review: Check out how sectors will perform

Is another financial crisis on the anvil?

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SAIL

Compact Disc

Patel Engineering

Weekly Newsletter - June 6 2010

Weekly Newsletter - June 6 2010

Punj LLoyd

Praj Industries

India Strategy - June 6 2010

ONGC

BGR Energy Systems: Buy

TECHNICAL ANALYSIS: Pivotals: Reliance Industries (Rs 1,030.8)
Reliance Industries was at the centre of action last week as it collapsed to a low of Rs 840 on Tuesday making traders' heart skip a beat. Since the freak trade was remedied instantaneously, it will not have any bearing on the graph or ...

TECHNICAL ANALYSIS: Sizzling Stocks: Reliance Media World (Rs 61.7)
Investors tuned in to Reliance Media World as the buzz that the company was forming a joint venture with US based CBS Corp to launch television channels circulated in the market. The stock gained over 25 per cent from the previous week's ...

TECHNICAL ANALYSIS: Stock Strategy: Consider shorting ICICI Bank
ICICI Bank (849.5): This stock has been in a downtrend with occasional pull back since the peak recorded in April. The outlook appears negative for this future as long as it trades below Rs 907. It has immediate support at Rs 826. A ...




Src: Economictimes. DP blog and etc

Morning Calls

Nifty may get strong support at 4800 level

Once again consensus has failed in the market. The 4200 and 4300 put build-up, especially after a buy figure of FIIs in the index options segment, has raised many eyebrows. Shorting was certainly not advisable around 4800, as it was a strong support, but we didn’t recommend buying either. There was a strong wave of negative sentiments in the market, as even from a bounceback to 5100 during end-May didn’t result in a significant fall in implied volatility. Then, we had another 200-point fall and now back to 5100. But this time, IVs have fallen to 23.95%. These changes will certainly divide the participants on where the market is heading. We still belong to the sell on the rise camp. In this bounceback, too, we are not seeing any meaningful formation of long positions or a significant cash-based buying by FIIs. There is still a lot of room in the form of open interest, at least in index futures to form fresh shorts by participants and still it won’t be in the oversold zone. We have seen a lot of selling calls of strike 5100 and 5200, which have not seen any significant unwinding in them. This zone is a strong resistance. So, we won’t suggest any buying in the index now. Though not in the beginning of this series, but now, 4800 is emerging as strong support. As of now, it seems that the market may get stuck into the range of 4800-5200 and we are heading towards a higher side of the range. For next few days, we expect the market to consolidate and in this phase of consolidation, mid-caps and small-caps may outperform major indices. Siddarth Bhamre, Head-Equity Derivatives, Angel Broking

Heard on the Street

Some foreign institutions, in the past few sessions, have been buyers in telecom shares, which have been among the best performers in the week so far. The market buzz is that a US fund, which has stakes in United Spirits and Cox & Kings, bought sizeable chunks of Idea Cellular recently. Idea shares closed at Rs 55.85, up 4.5% on Thursday. Some foreign investors, including the fund managed by a star fund manager of yesteryear — before he was tripped up in a regulatory probe — are speculated to have bought shares of Bharti Airtel recently. On Thursday, the stock rose 1.2% to Rs 273.50. Brokers said many investors are of the view that telecom stocks are unlikely to fall below their lows touched recently. With the buzz of a stake sale in Reliance Communications growing louder, investors are betting that telecom shares will command better valuations hereon. Pvt insurers lap up ONGC ahead of EGoM meet Priavte insurance companies are believed to have mopped up shares of Oil and Natural Gas Corp (ONGC) on Thursday. The stock rose 2.4% to Rs 1,210.75 on Thursday. The buying has come ahead of the meeting of the Empowered Group of Ministers (EGoM) on June 7, when oil price deregulation could be discussed. The market is betting that the government could decide on deregulating oil prices, if not fully. ONGC is believed to have met investors and trade on Thursday, a day after the bulk deal of 39.2 lakh shares. The stock closed at Rs 560.10, down 0.8%, with less than 50,000 shares being traded on both exchanges combined. On Wednesday, GPC Mauritius II LLC, a subsidiary of Greater Pacific Capital Partners, had sold its 4.8% stake in the company to a clutch of institutional buyers. Only GMO Emerging Market Fund’s name (the fund bought 7.8 lakh Torrent shares) showed up in the disclosure on the BSE website. Dealers tracking the stock say the Icy Icy Mutual Fund, Kala Patthar Mutual Fund and the South-based Satyam Shivam ... were the other prominent buyers of the stock. However, since these fund houses bought shares across various schemes, their names did not show up on the buyer’s list. Contributed by Nishanth Vasudevan & Santosh Nair

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Mid-term picks | Top 5 picks of the day

HUL plans buyback for boosting stock price

Tech view: Make or break day for markets

TRADING

EMCO

Kalpataru Power

IDFC

Kernex Microsystems

Reliance Industries, ONGC

Ashiana Housing

IVRCL Infrastructure

Tantia Constructions

GSPL Limted

Sterlite Industries

Hotel Leela

Src: ET, DP blog and etc

Derivative Calls

We Wish to Start a New Initiative DERIVATIVE CALLs for Investors and Traders.. But this is purely sourced from Outside Websites, Medias, and Other Brokerages... All of you Know DERIVATIVE is High RISK also a High REWARD one.. Loss Will be More if Not keeping Strict SL.

So Kindly DO all the calls Given in DERIVATIVE Segment with STRICT STOP LOSS.

Becos HIGH RISK and HIGH REWARD..

Take these calls with Own Financial Risk/Proper Guidance.



Derivative Call:

Buy FINANTECH FUT(1354):
Tgt 1460-1612 SL 1285(Lot 150)

Buy BGR FUT(656):
Tgt 680-720 SL 635 (Lot 400)

Risk:Rs 8k-10k/Lot.



Do these Calls with Proper Guide..