Chance of a rally in Nifty only if it closes above 8340
After a slight rebound on Wednesday, a strong sell-off today took the indices to its lowest since 31 October 2014. Against our anticipation of the market moving sideways, the benchmarks resumed their declines.
S&P BSE Sensex opened lower at 27,796 while CNX Nifty opened at 8,339. The indices fell further to hit a low at 27,539 and 8,272. The indices hit a high at 27,796 and 8,348. The indices almost manged to reach yesterday’s close in the afternoon but were again pulled lower in the final session and closed slightly above the day’s low. Sensex closed at 27,602 (down 229 points or 0.82%), while the Nifty closed at 8,293 (down 63 points or 0.75%). NSE recorded 79.29 crore shares. India VIX rose 4.33% to close at 12.7725.
Minister of State, independent charge, Petroleum & Natural Gas, Dharmendra Pradhan informed the Rajya Sabha in a written reply on Wednesday that Petroleum & Natural Gas Regulatory Board (PNGRB) has envisaged a phased roll out plan for development of city/local natural gas distribution network in the country, which includes 8 districts of Bihar.
The Union Cabinet chaired by the Prime Minister, Narendra Modi, on Wednesday, gave its approval for allowing public sector banks to raise capital to meet their additional capital requirements under BASEL-III by diluting Government holding upto 52% in a phased manner.
The Cabinet Committee on Economic Affairs approved a mechanism for procurement of ethanol by PSU OMCs to carry out the ethanol blended petrol program. The CCEA approved replacing the current procedure on ethanol viz. delivered price of ethanol may be fixed in the range of Rs 48.50 per litre to Rs 49.50 per litre, depending upon the distance of the sugar mill from the depot/installation of the OMCs.
Finance companies like SREI Infrastructure Finance (16.92%), Gruh Finance (5.92%) and Bajaj Finance (3.65%) were among the top nine gainers in ‘A’ group on the BSE.
Havells India (9.22%) continued to be the top loser in ‘A’ group on the BSE. The company's management cut the company's standalone revenue forecast to 12%-14% from earlier 17%-20% for the year ending 31 March 2015, citing weak domestic demand.
Coal India (1.00%) was the top gainer in the Sensex-30 pack. Consultancy firm Deloitte which was selected to institute a study on restructuring options for Coal India is yet to submit its final report, Parliament was informed today.
ONGC (3.21%) was the top loser among Sensex-30 stocks thanks to a continues decline in crude prices. The stock was in the news since it won an offshore oil and gas exploration block in New Zealand. BSE sought a clarification for the same from the company for which a reply is still awaited.
On Wednesday US indices closed in the red. Asian indices closed mostly in the red. Seoul Composite (1.49%) was the top loser.
Japan's core machinery orders, a leading indicator of capital spending, snapped a four-month rising streak in October, according to data released yesterday. Core machinery orders fell 6.4% month on month and on a year-on-year basis, machinery orders fell 4.9% in October.
China's central bank has stepped up its efforts to pump more cash into its banking system with a $65 billion fund injection.
European indices were trading in the red. US Futures too trading flat.
The latest data showed that consumer price inflation in Germany remained unchanged last month. In a report, Federal Statistical Office, Germany said that German CPI remained unchanged at a seasonally adjusted 0% in November, from 0% in October.
Here is a PSU with strong fundamentals
Manganese Ore India Ltd (MOIL) operates 10 mines. Six of these are located in the Nagpur and Bhandara districts (Maharashtra) and four in the Balaghat district (Madhya Pradesh) and extract manganese dioxide. Manganese dioxide is used by dry-battery industry and to make ferro-manganese and related alloys which are used in the steel industry.
While Nifty will be influenced by overseas markets for now, only a close above 8,420 may lead to a short-term rally