The fall will resume if Nifty closes below 5,450. Above that, the resistance is at 5,580
Yesterday we had suggested that if Nifty closes above 5,450, there could be a rally. The Nifty traded above 5,450 throughout the say and closed above it. If Nifty stays above 5,450, there is a chance the rally may extend to 5,510 and further to 5,580. If the market goes down, the first support is at 5,300. However, the bias is negative.
The Sensex and Nifty opened at 18,200 and 5,451, respectively. A fall in food inflation for the week ended 7th May and a decline in global crude prices supported the gains. Capital goods, auto and banking sectors were in demand in early trade.
The market hit the intra-day low at the start of the day itself, after which it was inching higher except for a small dip following reports that the government has hiked the contribution of upstream oil companies toward fuel subsidies to 38.8% for FY10-11. The intra-day low was at 18,161 and 5,433.
The fall was soon arrested and the indices once again started on their upmove boosted by the key European bourses opening higher. The post-noon session saw the market meeting its intra-day high, which happened to be a three-day high, at 18,429 and 5,518. The market settled with decent gain for the second day in a row. The Sensex rose 185 points to close at 18,326 while Nifty rose 58 points to close at 5,486. The advance-decline ratio on the National Stock Exchange was a positive 799:593.
Among the broader indices, the BSE Mid-cap index closed 0.61% higher and the BSE Small-cap index gained 0.49%.
BSE Capital Goods (up 2.31%, BSE Auto (up 1.37%), BSE Healthcare (up 1.34%), BSE Power (up 1.32%) and BSE Realty (up 1.31%) were the major sectoral gainers. On the other hand, BSE Fast Moving Consumer Goods (down 0.85%) and BSE PSU (down 0.01%) were the losers in the sectoral space.
Larsen & Toubro (up 3.57%) continued to hog the limelight, emerging as the top Sensex stock for the second day. Other main gainers were Cipla (up 3.22%), Bajaj Auto (up 3.05%), Tata Steel (up 2.76%) and Reliance Infrastructure (up 2.73%). The losers were led by ITC (down 1.82%), ONGC (down 1.17%) and State Bank of India (down 0.24%).
In a move that may spook Oil and Natural Gas Corporation's (ONGC) planned public offering, the government has hiked the contribution of upstream oil companies toward fuel subsidies to 38.8% for 2010-11 fiscal.
Of the Rs78,159 crore revenue that retailers lost on selling diesel, domestic LPG and kerosene below cost in the 2010-11 fiscal, upstream firms ONGC, Oil India and GAIL India have been ordered to contribute Rs30,296.7 crore, or 38.8%, sources in the know of the development said. ONGC has been ordered to chip in Rs24,892.43 crore, while OIL will provide Rs3,293 crore and GAIL Rs2,111.24 crore.
Markets in Asia settled mixed on the last trading day of the week as Japanese investors were worried about the recovery of the disaster-stricken economy. Stocks in Seoul gained after a steep fall in the previous session. On the other hand, uncertainty over China's economic outlook remained an overhang for the market.
Meanwhile, Tokyo Electric, commonly known as Tepco, posted a net loss of 1.25 trillion yen for the year ended in March, compared with a profit of 133.8 billion yen a year earlier. The loss, the biggest in Tepco's 60-year history, reflects costs to scrap damaged nuclear reactors at Fukushima Daiichi and a write-off of deferred tax assets with compensation payouts likely to depress profits for many years.
The Shanghai Composite shed 0.04%, the KLSE Composite lost 0.19%, the Nikkei 225 declined 0.14%, the Straits Times fell by 0.13% and the Taiwan Weighted was down 0.63%. On the other hand, the Hang Seng gained 0.16%, the Jakarta Composite rose 0.34% and the Seoul Composite advanced 0.76%.
Back home, foreign institutional investors were net sellers of stocks worth Rs34.41 crore on Thursday. On the other hand, domestic institutional investors were net buyers of equities worth Rs132.34 crore.
A number of websites have cropped up, trying to lure investors with dubious claims of more than 100% returns—why are the regulators silent?
Speak Asia is not the only company luring thousands of people with dubious claims and the promise of extraordinary returns. The legitimate options & futures trading market of the National Stock Exchange (NSE) is a happy hunting ground for shoddy online tip-sheets, luring the gullible.
The Internet is flooded with websites claiming accurate tips, as high as 99% in trading in Nifty Futures & Options, etc. These portals are luring people to subscribe to their various plans—which is nothing but virtual gambling.
Most of the trades are usually in the Nifty and individual stock options where average trading volumes on the NSE are about Rs1,00,000 crore per day. Of these, index options account for 65% of total volume.
A Google search throws up dozens of websites promising huge returns through their tip-sheets, but market regulators seem to be unaware of these portals.
The modus operandi of all these tip-sheet portals is similar. They claim 99% accuracy, provide various stock options plans on (weekly or yearly) subscription. On an average, two-three 'tips' are delivered via mobile text messages. A few punters deliver tips using online chat rooms.
There are many more websites making such claims—Here are a few:
Obviously, if generating such high market returns was so easy, investors all across India-and around the globe-will be flocking to Mumbai. The blatant dubiousness of these claims is obvious even with a cursory glance at these sites. But a few might just bite the bait. The moot point is, while a Google search can throw up so many sites, why are the regulators silent?
In past four years, Kavveri Telecom has acquired four different RF products and antennas manufacturing companies in North America
The Board of Kavveri Telecom Products, a leading telecom equipment manufacturer, has approved the acquisition of an RF company in Europe.
The RF solutions and products provided by this European company are considered world class, not only address a key technology requirement for the company, but will also provide a further opportunity to improve their business performance by leveraging Kavveri's low cost high value manufacturing capabilities.
This acquisition will also expand Kavveri's sales channels for their products in key world markets in Europe, Africa and Latin America. Kavveri has recently won an order of Rs75 crore from Europe and the company hopes that by this acquisition in Europe, would give it better position to get large orders from the customers in Europe.
Speaking about this acquisition, Shivakumar Reddy, managing director, Kavveri Telecom Products said that, "We are extremely positive about this acquisition. It will facilitate Kavveri to go one step ahead in its strategic initiative of making its facilities in India the global manufacturing hub."
Kavveri Telecom provides world class hardware products and solutions for the telecom, defence and space industry.
On Friday, Kavveri Telecom ended 1.79% up at Rs130.50 on the Bombay Stock Exchange, while the benchmark Sensex gained 1.02% at 18,326.09.