END OF THE DAY REPORT (17th MARCH 2015):
Markets ends lower; Bank stocks drag.
Market dips for the second consecutive session retreating from earlier gains led by profit booking in Banking stocks and Reliance group shares. Sensex slipped 152 points and ends at 28469 while Nifty ends at 8634, 51 points lower.
“Bank Nifty falls today’s near around 600 points in trading session”
Banking stocks were under pressure as Bank Nifty falls near around 600 points today (intraday). PNB, Axis Bank dips 3 to 4% on NSE (National Stock exchange.)
HEADLINES FOR THE DAY:
- HCL Tech turns ex-bonus (i.e. 1:1) today.
- KPIT dips nearly 7% (extends falls) on lower Q4 revenue outlook.
- Rajesh Export gains as bags new order of Rs 12.65 billion.
- Glenmark Pharma gains 4% on talk of positive announcement.
- Just Dial, Jain Irrigation, Oil India, TTk prestige gains after rating agencies upgrade stock ratings.
- IDBI bank sells 10 pct stake in CARE (Credit Analysis and Research).
- Jewellery stocks were in focus today on the back of heavy volumes as PC Jeweller, TBZ, Gitanjali, Titan moved higher on the back of two fold jump in trading volumes..
- Aurobindo Pharma hits new high after reported that USFDA (US Food and Drug Administration) had given nod for Lacosamide tablets.
- LIC Housing Finance moved higher after reported that company picked 9.94 percent stake in Care (Credit Analysis and Research).
- TechM (Tech Mahindra) dips as stock turns ex-stock split (i.e. 2:1) and ex-bonus today (ONE bonus equity share for every ONE equity share).
- Wock Pharma moved higher after US health regulator gives clean chit as USFDA did not found any issues at Chikalthana unit.
- L&T construction secured new order of Rs 12.55 billion.
- BHEL (Bharat Heavy Electricals) wins new order worth Rs 2.25 bn for setting up a 120 MW HEP (Hydro Electric Project) in the state of West Bengal against ICB (International Competitive Bidding).
- RPG Life Sciences hits all time high 10% (locked with upper circuit) on back of heavy volume.
- Crompton Greaves dips as company is planning to sell 35% stake in its consumer durables business to private equity firm Advent worth $300 million.
SOME STOCKS FOR NEXT TRADING SESSION:
- Indiabulls Real Estate Limited (IBREALEST) has given breakout of its important support i.e. of 72.60 and trading below it, so further stock may dip. Sell Ibrealest EQ below 69.70, its next support is seen near around 68.20-66.50 and resistance 74.50-75.30.
- KRBL made all time high of 151.30 with huge volume & also sustain at higher level in an otherwise market and on weekly chart it finished with long bullish candle so buy above 151.30 use stop loss of 145 on closing basis with target of 154-156.
Most of the global markets moved towards all time highs after the Fed Reserve signaled it was in no rush to push interest rate higher despite removing a reference to being patient on interest rates.
- European gains on news U.S. interest rates will most likely remain same for a prolonged period of time.
- Australia gains led by Gold, Financials sectors and Australian Real Estate Investment Trust.
- Asian stocks were mixed as traders noted the Fed Reserve has moved to clarify the terms of a widely expected rate hike this year, but also left room to guess on the timing.
– Stocks and Gold both are going up, its a rare phenomena. The reason behind this unnatural correlation is the FOMC (US Fed) statement over interest rate hike in US. The weakness seen in USD will make our imports go cheap including gold at one hand and FIIs will not dump their Indian holdings on the other. India at present offers more then US in terms of interest rates.
– Nifty is expected to see the level of 8830-40 in coming sessions. COMEX Gold saw a sudden spike because of US Fed’s monetary policy statement, in which Fed looks positive of rate increase but not now because of the target inflation figure moving up slowly then expected, weak exports and slow growth in housing sector. This all has made USD to weaken against other currencies and as a result gold went up. Gold is expected to see the level of USD 1185-90 in coming session and then could face resistance.