It was a quiet start for the Nifty on the first day of the expiry week. The Sensex was up 109.47 points or 0.67% at 16327.29, and the Nifty was up 32.55 points or 0.66% at 4952.95. About 651 shares advanced, 257 shares declined, and 2515 shares remain unchanged.
Auto, banks and capital goods stocks were on buyer's radar today. The broader markets also opened with decent gains.
The Indian rupee opens at 55.24 per dollar versus 55.37 on Friday.
Top gainers on the Nifty were Bank of Baroda, SBI, BHEL, Jaiprakash Associates and Tata Steel. GAIL, BPCL, HUL and Ambuja Cements were bleeding in red.
Reliance Communications, India's second-biggest mobile phone carrier by subscribers, said on Saturday its fourth-quarter profit nearly doubled - its first profit rise in 11 quarters - on sharply lower costs.
Reliance Communications, controlled by billionaire Anil Ambani, said consolidated net profit rose to Rs 3.32 billion for the three months ended March, from Rs 1.68 billion reported in the year-ago quarter.
Broader Markets
In the midcap space 3M India, FDC, Shree Global, Zydus Wellness and Redington were up 4-10%. On the losing side, S Mobility, Suzlon Energy, Nava Bharat Ventures, FAG Bearings and Aurobindo Pharma were down 2-12%.
Chart Check
The 200-day SMA (Simple Moving Average) and 20-day EMA (Exponential Moving Average) have now shifted to 16800 / 5070 and 16430 / 4975, respectively. The ‘20-Week EMA’ is placed at 16930 / 5130 level.
Indices have taken a support near 15860 / 4766 level, which is the 78.6% Fibonacci Retracement level of the rise from 15135 / 4531 (Low on December 23, 2011) to 18524 / 5630 (High on February 22, 2012).
The daily 'RSI - Smoothened' oscillator has now signaled a positive crossover in the oversold territory. The candlestick pattern on the weekly chart represents another bullish “Hammer”.
Stocks in News
Government sources indicate that a diesel price hike in June is inevitable and that there could be small frequent hikes instead of a Rs 5-7 per litre hike.
The Telecom Commission passes on the TRAI’s reserve price recommendations to the EGoM. The TRAI analysis will go via the Department of Telecom (DoT) before coming to the EGoM. The auction will be undertaken in the 1st half of CY13. The telecom secretary says they have not made any recommendations on pricing and the EGoM will take a decision based on the TRAI’s analysis.
The Telecom Commission passes on the TRAI’s reserve price recommendations to the EGoM. The TRAI analysis will go via the Department of Telecom (DoT) before coming to the EGoM. The auction will be undertaken in the 1st half of CY13. The telecom secretary says they have not made any recommendations on pricing and the EGoM will take a decision based on the TRAI’s analysis.
CNBC-TV18 learns that the Future Group management has given a nod for the sale of Future Capital stake to Warburg Pincus. The Future Group-Warburg deal is likely to be announced this week.
Hotel Leela redeems outstanding bonds worth USD 41.6 million.
JSPL drops USD 2 billion Bolivia plan, reports the Times of India.
RIL moves High Court on new consent order rules as it wants to settle insider trading charges via consent, reports the Economic Times.
Pratibha Industries ’ board okays issuing shares on rights basis.
The Reliance Industries versus Ministry spat forces PMO to look at Oil & Gas sectors, with Rangarajan heading the committee, reports the Economic Times.
Lanco will be selling its roads business and power arm to pare debt.
Thomas Cook ’s open offer is priced at Rs 65.48 per share. The offer opens on July 11 and will close on July 24.
Agencies report that trade union representatives in EPFO opposes Reliance AMC stake sale to Nippon Life.
And Tata Motors lowers its production target from 2.5 lakh units/year to only 30,000 units as vendors remain reluctant to take a hit on profitability. Tata Motors says there is no timeline fixed for the Nano Diesel launch. Vendors meanwhile are not accepting lower volumes for the diesel Nano.
Currency Corner
In the currency space, the euro recovers after briefly dipping below 1.25 on Friday rattled by Greek exit fears. The euro currently is above 1.25 while the dollar index holds above the 82 mark.
In the currency futures market, the most traded near-month dollar-rupee contract on the NSE closed at 55.4. The USDINR May open interest was down by 1.6% from the previous close. The June contract open interest was up by 21.8% from the previous day
ICICIdirect expects the US dollar to attract some selling pressure on rallies against the INR. Utilise the highs in the US$/INR May contract to sell
Commodity Check
Meanwhile, Brent crude prices steady around USD 107 per barrel levels following an upbeat US consumer sentiment data. The rupee movement, which fell to record lows against the dollar in the week gone by and impacted markets, will keep investors cautious. The euro gained against the dollar on Friday while exporters sold the greenback, helping the rupee's cause.
And from the precious metals space, gold inches higher to USD 1574/oz levels
Asian Markets
In Asia, South Korean markets are shut today. Right now, Taiwan is up 0.3%; Hang Seng is up 0.2%; Nikkei is up 0.1% and Shanghai is down 0.6%.
Wall Street ends lower
US markets closed lower in thin trading as investors remain cautious amid ongoing worries in the euro zone. Still, all three major indices posted their best weekly gains for the month, snapping a three-week losing streak. For the week, the Dow gained 0.69%, the S&P 500 rallied 1.74%, and theNasdaq soared 2.11%.
Cues from Europe
European markets closed flat as some traders looked to book profits on the back of a two-day rally with fears over Greece still lurking in the background.
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