Weekly Commodity News 05/Mar/2012-10/Mar/2012

Gold tumbles as US Fed signals no further stimulation measures 05/Mar/2012

Gold shed 5% on Wednesday afternoon following the the U.S. Federal Reserve Chairman Ben Bernanke's semi-annual testimony on monetary policy before the House Financial Services Committee this afternoon. In his report he gave no clear indication of further economic measures to stimulate the US economy and the outlook for inflation being "subdued'. The effect on gold was palpable.

In early London trading gold had been trading at $1790 and expected to launch an assault on resistance at $1796 (the November 14 2011 high) as well as the psychologically important $1800 level. The news that the US Federal Reserve may desist from further QE, threw the market into reverse, shedding $84/ounce. The news had a more modest impact on the US dollar index which rallied by approximately 1%. Bull runs are characterized by retracements such as these and in fact confer greater strength and validity on higher prices in the year to come. What will be most interesting is to see just how quickly gold recovers from this set back as it will be a good test of the resolve of gold bulls.

Iran stops exporting oil to Greece 05/Mar/2012

Iran has reportedly stopped delivering crude oil to Greece. This comes on the back of increased warning from Iran that it will immediately stop all oil exports to the EU in retaliation of the EU ban on Iran's oil.

Iran's FARS news agency reported that Greek oil tankers that had come to transfer 500,000 barrels of oil from Tehran to a refining complex in Greece was refused delivery by Iran and was sent back empty. However, no official confirmation has been received.

Earlier, Iran had stopped exporting oil to Britain and France and had announced that it would continue to export oil to only those nations that will give a guarantee to pay the oil price and sign medium to long term oil contracts. If Iran does continue to refuse delivering oil to Greece, the EU nation may face increasing problems since Iran is one of its major oil suppliers. Oil prices have been rising strongly for the past few days on the back of Iranian tensions.

Base metals recover on global cues 05/Mar/2012

Most of the base metals recovered moderately at at the non-ferrous metal market here today on renewed stockist buying amidst industrial demand on the back of higher London Metal Exchange (LME) cues.

Meanwhile, lead eased on lower offtake from alloy industries. The industrial metals were trading higher at the LME on positive US economic data as well as increased pace of bailout fund into eurozone financial system.

Copper cable scrap, copper scrap heavy, copper armiture, copper utensils scrap and copper wire bar all rose by Rs 4 per kg each to Rs 477, Rs 470, Rs 463, Rs 436 and Rs 505 from overnight close of Rs 473, Rs 466, Rs 459, Rs 432 and Rs 501.

Copper sheet cutting and aluminium ingots moved up by Rs 3 per kg to Rs 457 and Rs 135 as against Rs 454 and Rs 132.

G O L D - 05/Mar/2012

T E C H N I C A L  V I E W

MCX GOLD, last week shows bearish trend as U.S. Federal Reserve Chairman Ben Bernanke's semi-annual testimony on monetary policy, and gave breakout of channel pattern on down side. Now if gold break 28200 then bull rally may take it towards 29000 as on daily charts it shows reversal pattern. On other hand if it breaks 27700 then it may find next support around 27150.

S T R A T E G Y

Buy on dips with the stop loss of 27700, for the target of 28500/29000.

S I L V E R - 05/Mar/2012

T E C H N I C A L  V I E W

MCX SILVER moves in a channel pattern, last week it gave falls breakout on lower side. Now if it is able to sustain above lower band of channel then we expect it will test again upper band. 60700 is act as immediate resistance for silver above this it may face next resistance around 62000-63500. On lower side 58800 is crucial support for it.

S T R A T E G Y

Better strategy in the Mcx Silver at this point of time is to buy on dips. For the target of 62500, with stop loss of 58800.

C R U D E O I L - 05/Mar/2012

T E C H N I C A L  V I E W

On daily charts, crude oil looks in bullish trend. On daily charts it may find resistance around 5410 and if gives closing above this then we expect this bull rally continue towards level of 5530. On lower side 5280 is acting as support zone for crude oil below this correction is seen in it towards 5130 level.

S T R A T E G Y

Better strategy in MCX CRUDEOIL is to buy above 5415. For the target of 5600 with stop loss of 5350.

COPPER  - 05/Mar/2012

T E C H N I C A L  V I E W

MCX COPPER last week showed bull trend and now it is around upper band of channel. On Friday it took resistance around 435 if it breaks this level then it may test upper band of channel after that we expect reversal towards lower band i.e. 420. On other hand if it gives breakout on upper side then bull rally continuous towards 465-480.

S T R A T E G Y

Better strategy in the MCX COPPER will be sell on highs, with the stop loss of 445 for the target of 420.

Nifty trend for 02/03/2012

Markets remained cautious for yet another day and nifty future traded below 5400 for most part of the session while weak opening of European markets made nifty future to slip towards support level of 5340. Now, if the crucial level of 5300 breaks then nifty will trade in the weak zone of 5200-5265 for today’s session. On higher side, if 5450 level is surpassed then 5540 will act as strong resistance to move it on higher side.

TREND: SIDEWAYS

SUPPORT: 5325 & 5265 RESISTANCE: 5450 & 5520

Major Market News-

·        Sensex ends down 169 points; DLF, M&M, BHEL drag .

·        India`s Manufacturing PMI falls to 56.6 in February .

·        Tata Motors sales climb 19% in Feb 12.

·        Maruti Suzuki February sales climb 6.5%.

·        M&M sales rise 29% in Feb 12.

·        Videocon Industries Q4 profit drops 46.7%.

·        PSU shares gain as as government approves buyback.

Nifty Trend for 01/Mar/2012

Markets had a gap up opening on mixed global cues but not sustain on higher levels. Opening of European markets in green also not support Indian market, Nifty continuously made new lows and got support around 5400 mark. Today 5400 play vital role for nifty, on intraday if it is maintain above 5450 then we expect some positive movements towards level of 5520 otherwise it may find next support around 5320 Below this bears are more active and take nifty towards 5220.

TREND: SIDEWAYS

SUPPORT: 5380 & 5320 RESISTANCE: 5500 & 5565

Major Market News-

·        Sensex gives up gains; L&T, HDFC Bank, ICICI Bank drag.

·        GDP grows 6.1% in Dec-qtr, slowest in almost 3 years.

·        Essar retreats as Credit Suisse cuts rating.

·        Muthoot Finance to raise Rs 5 bn via NCD issue.

·        ACC to set up new clinker facility with 2.79 MTPA capacities.

·        ONGC stake sale on Mar 1; may fetch about Rs 120 bn.

Markets had a gap up opening on mixed global cues. It was a relief rally after four day losing streak. Once nifty future crossed 5400 level it was able to sustain above this for the whole session and closing above 5440 is providing some strength further. Now, if it consistently trades above 5450 then bullish sentiments may take it above 5500 where 5565 may act as strong hurdle whereas if 5400 is broken then 5320 is seen as support for it.

TREND: SIDEWAYS

SUPPORT: 5380 & 5320 RESISTANCE: 5500 & 5565

Major Market News-

·             Sensex snaps 4-day losing streak, closes 285 pts higher. Realty, CG, Bankex rally.

·            JSW Steel Jan production surges 39%.

·             Essar Oil loses $615 million insurance claim.

·             Hexaware Tech rises on buyout talks with NEC Corp report.

·             GVK Power up on oil block stake sale report.

·             BoB expects rate cut in April; to sell 5% share to LIC.

Nifty Trend for 28/Feb/2012

Bears played a vital role and dragged nifty future into negative territory from the onset of the week and situation get worsened when European markets opened in red. As it surpassed 5400 mark it came in the weak zone and its closing indicates further plunging towards 5200. On Friday, buying interest was seen from FII side but still market could not sustain on higher levels further indicates that once it breaks 5180 level then nifty could slip towards deeper supports.

TREND: DOWN

SUPPORT: 5260 & 5180 RESISTANCE: 5400 & 5475

Major Market News-

·        Bloodbath at D-Street; Sensex plunges 478 points.

·        Realty, metal, power and banking were the worst performers.

·        Rupee extends fall on importer payments, weak shares

·        Strides Arcolab Q4 profit surges 10 times.

·        Orchid Chemicals & Pharmaceuticals up on FCCB repayment reports.

·        MCX fixes IPO price at Rs 1,032 a share; raises Rs 663 crore.

Equity Tips- 13-12-2011

Dismal IIP data, European weakness & weak rupee took indices towards the strong support zone of 4800 and market breadth was negative for whole session. 4750 is now seen as the crucial point for Nifty future and if it sustains below these levels then it can slip towards the recent lows of 4630. In this bearish rally, any up move in the index will find 4885 as its resistance. If it crosses 4900 mark then 4950 will be acting as hurdle to move on higher side.
TREND: Down
SUPPORT : 4720 & 4630 
RESISTANCE: 4885 & 4940

• Dismal IIP, weak Europe double blow for mkt;Sensex shed 343 points.
• Barring IT, all sectoral indices closed negative with metal being the worst among them.
• Industrial output contracts 5.1% in October.
• CBI chargesheets Essar, Loop Telecom in 2G.
• Emami plunges 6% after AMRI Hospital fire incident.
• Rupee hits new record low of 52.77 per dollar.

Technical News of Nifty 28- NOV - 2011

On daily charts, Nifty future is holding near the levels of 4700 which has now become a crucial level. It had got strong resistance around 4780 since last three sessions. Thus, if nifty sustains above 4800 then we expect to see a jump at 4900. If nifty slips below 4630 then next stop would be at 4530.  

TREND: DOWN

SUPPORT     :  4650 & 4530     

RESISTANCE:  4780 & 4850

Market gossip  

• Sensex ends 163 pts down on EU fears; L&T, BHEL up 3.4%, retail surge on FDI approval.
• Bharti Telecom buys 14.93 lakh shares of Airtel for Rs 54.51 crore.
• Bharti ends talks with RIL to sell insurance JVs stake, fail for life insurance business.
• Weak Rupee and euro fall hurt sentiments on local equities.
• Ranbaxy gains 8% as drug Lipitor's patent expiry nears.
• Unitech to invest Rs 4,000 ceror to develop over dozen malls.

Nifty Technical views on 11-11-2011

Sensex ends 207 pts down on euro woes; bankex dives 2.5%

After a lacklustre trade since the opening, the BSE benchmark Sensex shed more than 200 points in the last hour of trade due to renewed concerns in the eurozone. The fall of 7% in SBI on account of worries over its assets quality too added severe pressure on the market. Banking, oil & gas, auto, capital goods and metal stocks caught in bears' hand.

Ritu Arora of Canara HSBC Oriental Bank of Commerce Life Insurance Company feels that global environment does pose a lot of challenges at this point in time and the center of worry is Europe. "The focus shifts from Greece to Italy and Italy is the second most leveraged economy at 120% of GDP in eurozone."

Fears that the debt crisis could spread to Italy even after Prime Minister Silvio Berlusconi is ready to resign. European markets like France's CAC, Germany's DAX and Britain's FTSE were down between 1% and 2%. Others like Athex Composite (Greece) tumbled 2% and FTSE MIB (Italy) plunged over 4%. TheDow Jones futures crashed 186 points.

Back home, the 30-share BSE Sensex dropped 207.43 points or 1.18%, to close at 17,362.10 led by fall in 24 stocks. The 50-share NSE Nifty slipped 68.30 points or 1.29%, to end at 5,221.05.

Global cues drag Sensex 100 pts lower; SBI falls 6%

The BSE benchmark Sensex shed more than 100 points following negative European cues. France's CAC, Germany's DAX and Britain's FTSE dropped over 0.5% on worries over Italy and Greece. The Dow Jones futures fell nearly a percent. The 30-share BSE Sensex plummeted 119 points to 17,450.35 and the 50-share NSE Nifty lost 41.5 points to 5,247.90.

SBI crashed over 6% due to deterioration in asset quality in the second quarter. Net profit and net interest income of the bank were up 12% and 28% to Rs 2810 crore and Rs 10442 crore, respectively. But the most worried part was its non performing assets, which rose to 4.19% in Q2FY12 versus 3.35% year-on-year.

Reliance Industries, ONGC, ICICI Bank, Tata Motors, Tata Steel, M&M, BHEL, NTPC, Sterlite Industries and DLF were down between 1% and 2%. HDFC Bank and L&T fell 0.8%.

Maruti Suzuki lost nearly 3% and Hindalco was down 2.5%.

However, HUL shot up 3.3% and ITC gained 0.76%. From the technology space, TCS jumped 1.8% post the company has received USD 2.2 billion order from Friends Life and Wipro gained 2%.

Nifty Levels and News on - 04-11-2011

Sensex closes 17 pts up as Europe rallies, BHEL jumps 4%

The NSE Nifty recovered in late trade to close with moderate gains on Thursday. Indian market started recovering as European markets bounced on hopes that Greece referendum may not happen. The Nifty held on to the 5200 mark quite nicely since last week, which is looking like the support in the near term. The index rose 7.3 points, to end at 5,265.75. The 30-share BSE Sensex recovered 200 points from day's low, before closing up 17.08 points at 17,481.93.

Every market across the globe has priced in all negatives associated with Europe and is awaiting conclusive decision from the G-20 meet that started today. According to Nick Parsons of National Australia Bank, collapse of Greece government will be positive for global markets. He said ouster of PM Papandreou would mean no referendum in Greece.

European markets bounced back sharply after a fall of 1.5-2% in the initial trade. France's CAC and Germany's DAX moved up 1% each while Britain's FTSE rose 0.3%. Athex Composite (Greek) shot up 2.7% and IBEX (Spain) was up 1.25%.

Back home, heavyweights Reliance Industries, Bharti Airtel and SBI led the major support; respective stocks gained 1.51%, 2.15% and 1.34%.

Power stocks rallied after the government meeting on import duty for foreign power equipment. BHEL shot up 4.18% and Tata Power rallied over 3% while NTPC gained 1%.

However, the fall of 0.5-1% in Infosys, ICICI Bank, HDFC Bank, L&T and Wipro has limited the upside.

SAIL lost 3% after less than expected numbers in Q2. The company's net profit fell 54.6% to Rs 495 crore in the second quarter of FY12 due to forex loss Rs 509 crore.

Total traded turnover was more than Rs 1.16 lakh crore. Declines outnumbered advancing ones by 752 to 653 on the National Stock Exchange.

Nifty future closed 30 points up @ 5309. Now 5340 is very crucial resistance for nifty this level is 200 day moving average (DMA). Nifty break level of 5225, after that it take reversal made day high and closed around high. Market seems to be positive if it cross and maintain above 5340. Some major stocks looks bullish on charts market may be positive if maintain on tops.

 Sensex ends near 17500, 17 pts up as Europe rallies, BHEL jumps 4%, DLF, Tata Power up.
SAIL Q2 net falls 54.6% to Rs 495 cr.
Food inflation at 12.21% YoY on Oct 22.
Federal Bank not to jump into savings rate hike war.
On Mobile up 7%; Q2 net profit more than double.
Greek PM Calls for emergency meet as banks tank over 5%.

Source: www.commodityonline.com

Nifty News 02 - NOV – 2011

The BSE benchmark dropped for the second consecutive session on Tuesday, losing more than 200 points mirroring downtrend in European markets. Investors remain worried over the new EU deal, especially after the Greek prime minister raised concerns over it yesterday. The 30-share BSE Sensex fell 224.18 points or 1.27% to close at 17,480.83 led by sell-off in almost all sectors. The 50-share NSE Nifty slipped 68.65 points or 1.29%, to end at 5,257.95.

European markets saw drastic fall in today's trade after the Greek prime minister sought an unexpected referendum on the new EU aid deal. France's CAC and Germany's DAX plunged over 3.5%. Britain's FTSE lost over 2%. Source :- moneycontrol.com 

RESISTANCE: It has first resistance close to the level of 5440 & above this level the next resistance is seen near the 5500 mark.

SUPPORT: It has first support close to the level of 5330 & below this level the next support is seen near 5220 mark.

Daily Equity News- 02- NOV- 2011

Central Bank Q2 net down 36% at Rs 244cr on higher NPAs

 Public sector lender Central Bank of India's (CBI) second quarter (July-September) net profit shrank nearly 36% year-on-year to Rs 244 crore on higher provisions against non-performing assets. Its net interest income or the difference between interest earned and expended too rose at a slower pace nearly by 4% to Rs 1,396 crore. 

All in all, the quarterly numbers were below the street expectations.

"We will dedicate next quarters for recovering and upgrading of loan accounts,” said Mohan Tanksale , CMD , Central Bank of India addressing a press conference in Mumbai.

“We started implementing the process of NPA generation through computer from December, 2010 onwards. We hope to complete it between December and March. This could further dent our NPA levels by another 52 basis points. However, we aim to grow our loan book by 18% for the full fiscal as the next two quarters, the so-called busy season, will generate good credit demand for us."

As per the Reserve Bank of India's mandate, every bank will have to convert the process of non-performing asset generation from manual to computer system wherein an loan will be identified as NPA automatically as and when it falls below certain benchmarks. The implementation of such system will initially increase banks' NPA levels.

CBI's gross NPA ratio stood at 2.94% compared with 2.29% in April-June quarter. Net NPA ratio too worsened from 0.87% to 1.37% quarter-on-quarter. Consequently, the bank had to provide for the incremental bad loans. Provisions and contingencies increased to Rs 431 crore as against Rs 240 crore a year back. This has dented bank’s profit margin. Source :- moneycontrol.com