Market Outlook: Market to open positive and with just 2days for derivative settlement this would be hard to understand the move of the market with Derivative highly excess with PCR-1.77 Overall market Open Interest Rs.121407crs and with both Index near all time high Short squeeze is happening which is evident in Rollover statistics where Nifty rollover is 36% compared with 54%. Majority have been holding bearish or cautious view and when majority want a correction it may be delayed or may not happen, instead market can consolidate with sector specific correction may happen, we did mention about TELECOM sector looking weak and now CEMENT Sector had started to show weakness and CMIE in its report has said Cement prices are expected to weaken across cities in the second half of 2009-10. Cement prices are expected to weaken in second half of 2009-10 because huge 35 million tonnes of fresh cement capacity will come on-stream, which will put pressure on the realizations of companies. Asian Development Bank has raised its growth forecast for India to 6% in the current fiscal year from its earlier projection of 5%, but cautioned against the government’s ballooning fiscal deficit. India's corporate advance tax in the September quarter is expected to rise 14.7% to 440.10 billion rupees ($9.14 billion), a finance ministry official said which has come lower than previous figure of 18%.
Nifty (5020) Support-4978/4934/4890 Resistance 5055/5118/5170 VIX-26.80 Nifty range 4960-5055 Nifty failing to move above 5055 intraday correction can be possible. Target of the week can be 5170 if 4930 is not broken on downside.
Caution advised: Market for the past 4-6weeks has not seen an overall participation and it has been selective Auto, Tech, Banks and Metals stocks which has been holding the index and making 16months high. This can be a smart consolidation or distribution so investors are advised to improve cash level as timing correction is hard. And going by derivative if Shorts are squeezed then market would lack support in case correction happens in next few months and there can be a possibility of correction of higher degree 30-40% in my view.
- SEBI tightened its takeover regulations, a move which analysts say could be a blow to Bharti Airtel Ltd.'songoing merger talks with South Africa's MTN Group Ltd.
- Axis Bank fixed the price of its GDR offering at $18.90 (INR906.70) a share; has also fixed the price of its institutional share sale and preferential issue to promoters at INR906.70 a share, it said in a note to the BSE
- TCS said Tata Sons Ltd. on Sept. 11 revoked 10.58 million shares of the company that were pledged with financial institutions.
- U.K.-based financial-services company Standard Chartered PLC is expected to file paperwork with Indian securities regulators as soon as this week to become the first foreign company to list its shares on an Indian stock exchange.
- Polaris Software Lab is planning to expand its European operations beyond continental Europe and is considering joint venture alliances to achieve this.
- Reliance Communications plans to file a draft prospectus "shortly" for the initial public sale of shares in its telecom-tower unit, Reliance Infratel Ltd., Chairman Anil Ambani said
- Hindustan Unilever has put up a total of seven residential properties for sale in Mumbai and Gurgaon, which could fetch around Rs 35 crore.
