MosT GooD MorninG
Rajesh Desai
View-Point:
- Nifty continued its uptrend rally and has closed at 24-month high.
- Sustainance at these levels will edge Nifty further higher towards 6150 levels.
- Q3 nos BJAUT, YES (today), HCLT, HMCL (tomorrow) and ITC, RIL, HDFCB, WPRO (18th) will influence market moves.
LT IN: Trading buy CMP 1560, for 8-10% move, (fundamental TP 1794)
- LT has fallen by over 5% in the last 10 days.
- The stock fell amidst concerns on order intake in FY13Q3.
- Short positions have increased aggressively by 59% during this span.
- Futures Open Interest is now at 1 yr high.
- Yesterday Futures OI declined by 3% indicating covering of positions, and price up tick.
- The stock is closer to multiple support levels. (chart attached)
- Expect a bounce back led by short covering.
Stock has corrected almost 9% from top, and we believe the order intake issues are priced in, can be bought for 8-10% gains in short term.
News :
- Petrol price hiked by about 35 paise per litre on late yesterday night in line with firming raw material costs.
- MSIL IN : Maruti Suzuki will increase prices of its vehicles across models by up to Rs. 20,000 from today to offset pressure of adverse currency fluctuation.
- HMCL IN : Hero MoroCorp’s Gurgaon plant have demanded a hike in monthly wages of up to Rs. 18,000 over a three year period, which is nearly three times higher than what the company is offering as part of a wage settlement agreement.
- STR IN : As per media report, Pfizer Inc. is among companies weighing a purchase of the injectable-medicines unit of Strides Arcolab and began due diligence last week. The unit may be valued at about $2bn.
- TTMT IN : Tata Motor’s JLR's Dec-12 wholesale dispatches in-line at 32,282 (+4% YoY), MoM sales down due to a week holidays at all plants
- HCLI IN : HCL Infosystems will spin off three businesses – harware, learing and services – into separate units.
- DECH IN : NSE has decided to suspend trading of Deccan Chrnicle Holdings shares from January 23 as it failed to comply with listing agreements which included failure to submit quarterly shareholding structure between July and September and corporate governance report.
Derivatives:
- Nifty Futures OI decreased by 0.2m shs to 17.2m shs. Nifty Jan futures settled at a premium of 25 as against a premium of 33 in the previous session.
- Telecom Stocks: BHART IN (Cmp 345, up 5%) witnessed delivery of 5.1m shs (10d-avg 2m shs) and IDEA IN (Cmp 123, up 8%) witnessed delivery of 6.2m shs (10d-avg 1.3m shs) along with 20% rise in Fut OI to 13.2m shs indicating built up of long positions.
- Banking Stocks: AXSB IN (Cmp 1424, up 3%) witnessed delivery of 1.2m shs (10d-avg 0.7m shs) along with 10% rise in Fut OI to 3.8m shs and YES IN (Cmp 528, up 4%) witnessed delivery of 2.5m shs (10d-avg 1.2m shs) along with 8% rise in Fut OI to 7.1m shs indicating built up of long positions.
- In Jan series for Nifty, Highest Call OI is at 6200 strike with 8.5m shs down 0.4m shs and highest Put OI is at 5900 strike with 8.2m shs.
Results Today:
- Bajaj Auto (ENP 7.69bn down 7.7% YoY) , Bajaj Holdings & Investment, TTK Prestige, Yes Bank (ENP 3.27bn up 29% YoY)
Corporate Actions :
- Siemens (Rs 6) to trade ex-dvidend today.
Key Statistics:
Market Sensex 19,987 up 80 & Nifty 6,057 up 32
Advance:Decline 1114 : 1151
F&O data (15th) Index Rs. (1.03)bn & Stock Rs 0.67bn
Cash (Prov 15th) FIIs Rs 10.77bn & DIIs Rs. (7.56)bn
Cash (14th) FIIs Rs. 10.13bn & MFs Rs. (2.62)bn
Others Brent Oil $ 110.30 v 111.88 & Rs 54.62 v 54.50
Best Regards,
Retail Product Team
Motilal Oswal Financial Services Ltd.
Motilal Oswal Tower,
Junction Of Gokhale & Sayani Road,
Prabhadevi,
Mumbai - 400 025
Tel: 022-30896600
Visit us at www.motilaloswal.com
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CA. Rajesh Desai