MID IdeasAdvisory Advantage: Fundamental, Technical, Derivative & Commodity Updates

8th July 2013

President approves Food bills President Pranab Mukherjee signed Food Security Ordinance, paving way for implementation of the controversial Food Security Bill.

On June 3, Cabinet decided to promulgate an ordinance to give nation's two-third population the right to 5 kgs of foodgrain every month at highly subsidised rates of Rs 1-3 per kg.

News Update Fresenius Kabi Oncology received a warning letter from the US health regulator asking for more information and implementation of additional corrective and preventive measures regarding GMP non-conformities.

UK Medicines and Healthcare Products Regulatory Agency (MHRA) imposed an import alert on Wockhardt’s export-oriented unit plant at Waluj in Maharashtra. The company estimates that it would impact our business by USD 100 million on an annualised basis .

News Update Sebi takes action against promoters of Gillette India for non-compliance to minimum public holding norms. Sebi today ordered freezing all corporate benefits arising out of their stake in the company.

Hero begins African safari: Hero MotoCorpannounced its foray into the African continent with the launch of its brand and products in Kenya where it has also set-up an assembly unit.

News Update Escorts India is setting up a nation-wide dealers network to provide expensive farm machinery at affordable rates to small and marginal farmers on rental basis. Company would appoint dealers across the country, who in turn would train students or skilled labourers to work in the field of farmers by giving machinery on rent .

News Update Gammon India plans to develop 200 acres of land around Mumbai and in the central Indian state of Madhya Pradesh. Further, Bankers incl. ICICI Bank, Canara Bank, Bank of Baroda, Punjab National Bank have approved Rs 135 bln corporate debt restructuring plan, report .

BNP Paribas is planning to raise its stake in its Indian retail broking joint venture Geojit BNP Paribas by 4% to 37.58%, a person with direct knowledge of the plan said.

Ashok Leyland won an order for 2,610 buses from the Institute of Road Transport, Tamil Nadu. Company did not share financial details.

Action to be taken : Long Ashok Leyland

Stop Loss: 17.9 Target : 20.5

Ashok Leyland (CMP – 18.50)

Thermax Ltd received an order worth Rs.1,700 crfrom a leading petrochemical company for the design, manufacture and commissioning of 9 circulating fluidized bed combustion (CFBC) high pressure boilers.

Action to be taken : Long Thermax

Stop Loss: 609 Target : 630

Thermax (CMP - 617)

Daily Technical Update

Technical updateNifty gapped up strongly but succumbed to the selling pressure to give away some of the gains, but it managed to close positively at 5868 levels.

After coming close to the previous supply region of 5900, Nifty is showing signs of selling pressure.

Nifty may again fall back to the 200DMA which is around 5830 levels

The broader support zone lies around 5750.

Intraday support may be seen at 5831 and 5786 levels while resistance may be seen around 5900 and 5935 levels.(All levels are spot levels).

Technical updateBankNifty opened higher but shed some of the gains towards the close of the session to close eventually at 11434

BankNifty witnessed resistance around the gap area 11506-11615

The BankNifty trades continues to trade below 200DMA and is reflecting weakness.

The broader support lies around 11275-11365 levels.

Intraday support may be seen at 11348 and 11275 levels while resistance may be seen around 11530 and 11660 levels.(All levels are spot levels).

Global Indices

Global Indices and newsIndex Close Prev

CloseChange

% Change

Dow Jones

15136 14989 147 0.98%

S&P 500

1632 1615 17 1.02%

FTSE 6376 6422 -46 -0.72%

• Stocks rose sharply on Friday after robust jobs data pointed to economic growth and investors overcame concerns that the Federal Reserve may begin scaling back its stimulus efforts as soon as September.

• On Economic data front Government report on non-farm payrolls showed employers added 1,95,000 jobs in June, exceeding expectations of 165,000. Job growth in previous months also was revised higher.

• Key to watch on Wednesday, the Federal Reserve will release the minutes from its June 18-19 meeting. Those minutes are likely to attract heightened attention from Wall Street since they are coming out on the same day that Bernankespeaks to the National Bureau of Economic Research.

MID Ideas

Derivative Update

Nifty

Current Previous % change

Nifty 5874.95 5840.1 0.60%

OI 17369600 16611450 4.56%

PCR(OI) 1.18 1.14 3.51%

Most active index call option

Strike Curr. IV Curr. OI % Chg. OI % Chg. IV

6000 C 16.60% 6914500 14.43% -0.45%

5900 C 17.27% 4995100 -11.57% 0.84%

6100 C 16.32% 4649200 9.37% -0.29%

Most active index Put option

Strike Curr. IV Curr. OI % Chg. OI % Chg. IV

5800 P 18.94% 6225000 5.86% 4.01%

5700 P 20.19% 6084050 1.01% 4.85%

5600 P 21.50% 8334200 12.83% 5.70%

July 6000 CE & 5800/5600 PE have added OI

Nifty future OI +7.58 lac @ 173.7 lac shares & PCR @ 1.18

Positional Support : Nifty future @ 5765 closing basis

Intraday sup @ 5785 Resistance @ 5870-5900

SGX Nifty -53 points @ 5818

FIIs in Nifty Future Rs +123.95 cr

Commodity Update

Bullions :- Gold fell for a third session on Monday on fears the U.S. Federal Reserve could soon begin tapering its bond-buying stimulus after a stronger-than-expected jobs report.

Commodity News Updates

4044540125Sell on RiseSideways40298Silver (Sept)

2610325907Sell on RiseSideways26034Gold (Aug)

ResistanceSupportActionTrendPrvs CloseProduct

Base Metals:-

Copper : Copper prices on the LME edged down during early Asian hours on Monday on the back of a stronger dollar and rising expectations that the US Federal Reserve would scale back its stimulus. Recent weak economic data from China has raised concerns about the outlook for demand for the metal.

419.50415.20Sell on RiseRange Bound417.75Copper (Aug)

ResistanceSupportActionTrendPrvs CloseProduct

Oil & Energy:-West Texas Intermediate rose for a fifth day, the longest run of gains since April, as the U.S. added more jobs than forecast in June and protests in Egypt fanned concern about disruptions in Middle East oil supply.

64356305Buy on DipsRange Bound6368Crude (July)

ResistanceSupportActionTrendPrvs CloseProduct

NO US DATA TODAY

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