Markets opened down with a gap witnessed gradual upside momentum as the day progressed which led the indices to close near days high. On the sectoral front Capital Goods, Metal and IT led the rally whereas FMCG was the only sector which ended on the losing side. The Advance decline ratio was in favour of advancing counters (Advances = 1365/ Declines=1329).
Pattern Formation: On the Daily chart, we are witnessing a pattern thatresembles Bullish Engulfing candlestick pattern. The said pattern would get activated once nifty starts trading above 4957 level.
Future Outlook: In view of the above pattern formation, it is evident that the momentum on the upside would continue only if nifty trades above the bullish engulfing pattern which is at 4957. Hence in coming trading session if nifty trades above 4957 level then only it is likely to test 5000 – 5050 level. On the downside, 4920 – 4868 may act as support for the day. Unless high of Bullish engulfing pattern is not crossed which is at 4957, one should adopt cautious approach towards the market.
Data Alert From Overseas -
•Unemployment Claims at 6:00 pm
Domestic Sector News –
•AUTOMOBILES: Maharashtra will cap tax on vehicles imported or owned by companies at 20%.
• AVIATION: Air India begins international operations to the US and Europe even as striking pilots asked the government to initiate primary talks.
• METALS & MINING: The Odisha government and POSCO have agreed to set up 8-mln-tn-per-annum steel plant near Paradip in the state. This capacity is lower than the 12 mln tn proposed
earlier.
• OIL & GAS: By March 2012, the state-owned oil marketing companies had blocked as many as 3.8 mln liquefied petroleum gas connections for customers with more than one connection,
or another piped natural gas connection.
• TELECOM: The Telecom Regulatory Authority of India may reconsider its recommendations on auction of spectrum if the Centre sends them back to the body asking for a re-look.
Domestic Stock Specific News -
• Rupee hits all-time low at 54.46/$1 vs 54.29 prev low.
• Fin min official says rupee to be under pressure; no need topanic.
• RBI says India to offer $2-bln FX swap facility to SAARC.
• Infosys to supply technology to Airtel-Axis Bk mobile banking ops.
• Piramal Healthcare to buy Decision Resources for around $635mln.
• Ranbaxy gets US FDA nod for generic of painkiller MS-Contin.
International News -
• Euro area annual inflation was 2.6% in April 2012, down from 2.7% in March2 A year earlier the rate was 2.8%.
Today’s Result –
Asahiindia, Gujalkali, Satyamcomp, BAJAJ‐AUTO, Jpinfratec, Suryalaxmi, Bajajhldng, Jppower, Thangamayl, Elnet, Krebsbio,UBL, Essarshpng, Peninland, Wwil, Gtlinfra, PFS, Zicom.
Results Announced on 16-05-2012 -
•Reliance Media Jan-Mar consol loss 125.31 cr rupee vs 174.36 cr loss (Y-o-Y).
• ICSA India Jan-Mar net loss 138.82 cr rupees vs 330.24 cr rupees profit (Y-o-Y).
• Firstsource Jan-Mar cons net profit 23.07 cr rupees vs 38.25 cr (Y-o-Y).
• Videocon Ind Jan-Mar net profit 50.32 cr rupees vs 166.69 cr rupees (Y-o-Y).
EX- Dividend + Board Meeting
EX- Dividend - DIC India.
Board Meeting (Purpose) - Rossell India (Dividend), Bajaj Auto (Dividend), Bajaj Holdings (Dividend), Koutons Retl (General),Suryalakshmi (Dividend), THANGAMAYIL (Dividend), Diamines & Chem (Dividend), Navkar Build (General), United Brew (Dividend), Elnet Tech (Dividend), Peninsula Land (Dividend), Emami Paper (Dividend), Zicom Elect (Dividend)