8th July 2013

MID Ideas
Advisory Advantage: Fundamental, Technical, Derivative & Commodity Updates

President approves Food bills

President Pranab Mukherjee signed Food Security Ordinance, paving way for implementation of the controversial Food Security Bill. On June 3, Cabinet decided to promulgate an ordinance to give nation's two-third population the right to 5 kgs of foodgrain every month at highly subsidised rates of Rs 1-3 per kg.

News Update
Fresenius Kabi Oncology received a warning letter from the US health regulator asking for more information and implementation of additional corrective and preventive measures regarding GMP non-conformities. UK Medicines and Healthcare Products Regulatory Agency (MHRA) imposed an import alert on Wockhardts export-oriented unit plant at Waluj in Maharashtra. The company estimates that it would impact our business by USD 100 million on an annualised basis .

News Update
Sebi takes action against promoters of Gillette India for non-compliance to minimum public holding norms. Sebi today ordered freezing all corporate benefits arising out of their stake in the company. Hero begins African safari: Hero MotoCorp announced its foray into the African continent with the launch of its brand and products in Kenya where it has also set-up an assembly unit.

News Update
Escorts India is setting up a nation-wide dealers network to provide expensive farm machinery at affordable rates to small and marginal farmers on rental basis. Company would appoint dealers across the country, who in turn would train students or skilled labourers to work in the field of farmers by giving machinery on rent .

News Update
Gammon India plans to develop 200 acres of land around Mumbai and in the central Indian state of Madhya Pradesh. Further, Bankers incl. ICICI Bank, Canara Bank, Bank of Baroda, Punjab National Bank have approved Rs 135 bln corporate debt restructuring plan, report . BNP Paribas is planning to raise its stake in its Indian retail broking joint venture Geojit BNP Paribas by 4% to 37.58%, a person with direct knowledge of the plan said.

Ashok Leyland (CMP 18.50)

Ashok Leyland won an order for 2,610 buses from the Institute of Road Transport, Tamil Nadu. Company did not share financial details.

Action to be taken : Long Ashok Leyland

Stop Loss: 17.9

Target : 20.5

Thermax (CMP - 617)

Thermax Ltd received an order worth Rs.1,700 cr from a leading petrochemical company for the design, manufacture and commissioning of 9 circulating fluidized bed combustion (CFBC) high pressure boilers.

Action to be taken : Long Thermax

Stop Loss: 609

Target : 630

Daily Technical Update

Technical update
Nifty gapped up strongly but succumbed to the selling pressure to give away some of the gains, but it managed to close positively at 5868 levels. After coming close to the previous supply region of 5900, Nifty is showing signs of selling pressure. Nifty may again fall back to the 200DMA which is around 5830 levels The broader support zone lies around 5750. Intraday support may be seen at 5831 and 5786 levels while resistance may be seen around 5900 and 5935 levels.(All levels are spot levels).

Technical update
BankNifty opened higher but shed some of the gains towards the close of the session to close eventually at 11434 BankNifty witnessed resistance around the gap area 1150611615 The BankNifty trades continues to trade below 200DMA and is reflecting weakness. The broader support lies around 11275-11365 levels. Intraday support may be seen at 11348 and 11275 levels while resistance may be seen around 11530 and 11660 levels.(All levels are spot levels).

Global Indices

Global Indices and news

Stocks rose sharply on Friday after robust jobs data pointed to economic growth and investors overcame concerns that the Federal Reserve may begin scaling back its stimulus efforts as soon as September. On Economic data front Government report on non-farm payrolls showed employers added 1,95,000 jobs in June, exceeding expectations of 165,000. Job growth in previous months also was revised higher. Key to watch on Wednesday, the Federal Reserve will release the minutes from its June 18-19 meeting. Those minutes are likely to attract heightened attention from Wall Street since they are coming out on the same day that Bernanke speaks to the National Bureau of Economic Research.

Index

Close

Prev Close

Chan ge

% Change

Dow Jones S&P 500 FTSE

15136

14989

147

0.98%

1632

1615

17

1.02%

6376

6422

-46

-0.72%

MID Ideas
Derivative Update

Nifty Current Nifty OI PCR(OI) 5874.95 Previous % change 5840.1 0.60% 4.56% 3.51%

17369600 16611450 1.18 1.14

Most active index call option Strike 6000 C 5900 C 6100 C Curr. IV 16.60% 17.27% 16.32% Curr. OI 6914500 4995100 4649200 % Chg. OI % Chg. IV 14.43% -11.57% 9.37% -0.45% 0.84% -0.29%

Most active index Put option Strike 5800 P 5700 P 5600 P Curr. IV 18.94% 20.19% 21.50% Curr. OI 6225000 6084050 8334200 % Chg. OI % Chg. IV 5.86% 1.01% 12.83% 4.01% 4.85% 5.70%

 July 6000 CE & 5800/5600 PE have added OI Nifty future OI +7.58 lac @ 173.7 lac shares & PCR @ 1.18 Positional Support : Nifty future @ 5765 closing basis Intraday sup @ 5785 Resistance @ 5870-5900 SGX Nifty -53 points @ 5818 FIIs in Nifty Future Rs +123.95 cr

Commodity Update

Commodity News Updates

Bullions :- Gold fell for a third session on Monday on fears the U.S. Federal Reserve could soon begin tapering its bond-buying stimulus after a stronger-than-expected jobs report.

Product Gold (Aug) Silver (Sept)

Prvs Close 26034 40298

Trend Sideways Sideways

Action Sell on Rise Sell on Rise

Support 25907 40125

Resistance 26103 40445

Base Metals:Copper : Copper prices on the LME edged down during early Asian hours on Monday on the back of a stronger dollar and rising expectations that the US Federal Reserve would scale back its stimulus. Recent weak economic data from China has raised concerns about the outlook for demand for the metal.

Product Copper (Aug)

Prvs Close 417.75

Trend

Action

Support 415.20

Resistance 419.50

Range Bound Sell on Rise

Oil & Energy:West Texas Intermediate rose for a fifth day, the longest run of gains since April, as the U.S. added more jobs than forecast in June and protests in Egypt fanned concern about disruptions in Middle East oil supply.

Product Crude (July)

Prvs Close 6368

Trend Range Bound

Action Buy on Dips

Support 6305

Resistance 6435

NO US DATA TODAY

Thank You !

Disclaimer
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