Companies & Sectors
Section of Kingfisher pilots strike work on salary dues of March

Some Kingfisher flights from Mumbai have already been cancelled due to the pilots strike and many more cancellations are to follow

Mumbai: A section of pilots of near-bankrupt Kingfisher Airlines on Saturday went on strike, second time in the month, demanding immediate payment of March salaries, leading to cancellation of seven flights from Mumbai, reports PTI.
"A section of Mumbai-based pilots have gone on strike due to repeated failure to keep up with the promises (made by the airline management)," airline sources told PTI.
Some flights from Mumbai have already been cancelled due to the pilots strike and many more cancellations are to follow, they said.
Seven Kingfisjer Airlines flights from Mumbai have been cancelled, a Mumbai International Airport Limited (MIAL) spokesperson said.
The strike comes after a meeting between a group of pilots and airline Chief Executive Sanjay Aggarwal in the city to enquire about the March salaries, ended without yielding any results, sources said.
"About 15 pilots had gone to meet the CEO to enquire about the March salary since the pilots were promised by the managment that every one would be paid by 17th August. They were made to wait for an hour and half and then told that the chairman (Vijay Mallya) has said they will be paid by Tuesday," they said.
The pilots did not accept the assurance as the Chairman has repeatedly backtracked on his earlier commitments on payment of salary dues and, therefore, decided to strike work, sources said.
Kingfisher Airlines, whose accounts are under Corporate Affairs Ministry's scanner, has not made payments to majority of its employees since March.
The corporate affairs ministry has recently ordered an inspection of the account books of debt-ridden airline after receiving complaints from stakeholders alleging violation of certain provisons of company law.
Kingisher spokesperson was unavailable for comment.


Uncertain move ahead: Weekly Market Report

A close below 5,342 may see the Nifty slip to the level of 5,250

The market saw its third weekly close in the positive mainly on hopes that central banks across the world will step in with fresh initiative to spur growth in the light of dismal economic indicators. A fall in India’s headline inflation for July also supported the gains in the holiday-shortened week. Among economic events, July consumer price index (CPI) based inflation, to be announced on Tuesday, will be keenly watched.


The Sensex closed the week 133 points (0.76%) higher at 17,691 and the Nifty added 46 points (0.86%) to settle at 5,366. Going ahead, the market is likely to move sideways. However, if Friday’s low of 5,342 is broken and the Nifty settles below that level, we may see the index slipping to the level of 5,250.


The market closed in the green on Monday on a smart recovery in late trade. A fall in headline inflation for July and supportive global cues ensured a positive close for the second day. All markets in India were closed on Wednesday on account of the Independence Day holiday.


The benchmarks settled lower on Thursday on selling pressure in FMCG, metals and consumer durables sectors. Despite falling to the day’s low following the CAG report, select buying ensured a green close on Friday.


In the sectoral space, BSE Oil & Gas and BSE Auto gained 2% each while BSE Metal (down 2%) and BSE Power (down 1%) were the losers.


The top Sensex gainers in the week were Reliance Industries, Mahindra & Mahindra, Tata Motors (up 4% each), HDFC (up 3%) and Bharti Airtel (up 2%). Hindalco Industries (down 7%), Tata Power (down 3%), Sun Pharma, ITC and NTPC (down 2% each) settled at the bottom of the index.


The Nifty was led by Ranbaxy Laboratories, IDFC (up 7% each), RIL, M&M and HCL Technologies (up 4% each). The top losers were Hindalco Ind (down 8%), BPCL, Tata Power, Ambuja Cements (down 3% each) and NTPC (down 2%).


Hit hard by slowing overseas demand, India's exports in July contracted 14.8% to $22.4 billion in July. Imports too declined by 7.6% to $37.9 billion, leaving a trade deficit of $15.5 billion for the month.


Headline Inflation declined to 6.87% in July as the rate of price rise of the food articles category eased a little. Inflation, as measured by the Wholesale Price Index (WPI), was 7.25% in June and stood at 9.36% in July last year. Meanwhile, food inflation declined to 10.06% in July, from 10.81% in June.


The CAG on Friday charged the government of allocating coal blocks, power projects and land for the Delhi's airport at a pittance, costing the exchequer crores of rupees in lost revenues. Meanwhile, The government rubbished the CAG’s findings that private firms had got “undue benefits” to the tune of Rs3.06 lakh crore in coal, aviation and power sectors, arguing that the calculations were ‘misleading’ and faulty and accused the auditor of not following its mandate.


The BJP has demanded the resignation of prime minister Manmohan Singh taking “moral, political and personal” responsibility for the wrongful loss due to coal block allocations.


On the global front, US stocks settled higher for the sixth week on better-than-expected economic indicators. Analysts opine that the market is likely to face a challenge as September is seen as a month of heightened trading activity coupled with an increase in volatility.


European markets also settled higher as policymakers were making concerted efforts to find solutions to the continent’s debt crisis.


Nifty’s upmove not supported by volumes

Even though the trend is bullish more convincing evidence is needed to support the bullish cause from here on

S&P Nifty close: 5,366.30
Market Trend
Short Term: Up                          Medium Term: Down                          Long Term: Down
The bulls succeeded in pushing the Nifty steadily higher mid-week before easing off a bit at the end of the week. The Nifty finally closed 46 points (+0.86%) in the green but failed to close above trendline resistance shown in black. The volumes were significantly lower than last week implying that we are at an inflection point in at least the near term movement from here on. The coming days should decide this but looking at the position of the oscillators (exhibiting a negative divergence) clubbed with poor volumes we are inclined on the bear side (a contrarian view) unless there is convincing evidence to the contrary.
The sectoral indices which outperformed were CNX Auto (+2.14%), CNX Energy (+1.68%), CNX Finance (+1.34%) and CNX IT (+1.28%) while the underperformers were CNX Metal (-1.99%), CNX Commodities (-0.51%) and CNX PSE (-0.36%). The histogram MACD has moved up in line with the rise in the Nifty and as long as it remains above the median level the bulls are in control.
Here are some key levels to watch out for this week 
 As long as the S&P Nifty stays above 5,358 points (pivot) the bulls can breathe a bit easily though it is overbought in the short-term and is barely above this level now.
 Support levels in declines are pegged at 5,316 and 5,267 points. 
 Resistance levels on the upside are pegged at 5,408 and 5,449 points.
Some Observations
1. The Nifty continued its upward march to make a recent new high but the volumes were significantly lower than last week.
2. The ‘gap’ area between 5,246 and 5,260 has to be defended by the bulls at all cost or else they would find the going tough.
3. We saw the Nifty move briefly above the resistance line (in black) but it pulled back to close below it.
4. We have completed 34 (Fibonacci number) weeks from the low of 4,531 points (23 Dec 2011) hence could be a significant top.
The bulls succeeded in holding the Nifty at higher levels but failed to break the trendline resistance shown in black. The weekly oscillators are exhibiting a negative divergence and last week’s rise was on poor volumes making us believe that even though the trend is up we are now at an inflection point where the future course of action will be decided. The bulls are still very much in control but apart from the price movement, the circumstantial evidence does not instill bullish confidence. Time and price wise (the last decline from 5,629-4,770 and from 4,770-5,399) the fall/rise are in the 61.8%/78.6% time/price window. All these point out to a significant move being around the corner. Even though the trend is bullish at this moment we would prefer more convincing evidence to support the bullish cause from here on. Therefore we have been advocating exiting longs and also creating some short positions by the enterprising traders only. It’s only a matter of time when the market shows its hand. Till then as they say “it’s better to be safe than sorry”.
(Vidur Pendharkar works as a consultant technical analyst and chief strategist at


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