Fine Friday at start! Eye on Economic Survey
The Railway Budget is out of the way after Suresh Prabhu announced some innovative steps to get the largest employer on track. All eyes are now on the Economic Survey, which will be presented in Parliament today. The Union Budget to be presented on Monday will hold the key. It is widely speculated that the government may not stick to the fiscal deficit target of 3.5% of GDP for FY17.
The outlook is a positive start. Global cues are helping the cause as the market moves into the March series. Nifty ended down 6% for February series (eoe) basis after the fall of 6.5% in January expiry. BankNifty was the biggest dragger, with huge quantum of short rollovers positions carried forward for March series in banking stocks. Rollovers for Nifty stood at 68/71% (1.93cr vs 1.97cr previous expiry). VIX index was up ~28% on (eoe) basis. Ahead of budget, build up on options was seen with 7000 puts and 7500 calls holding maximum open interest.
Trading ideas (Time period: 1-3 days)
HDFC (BUY, above Rs1050, Target Rs1085, SL Rs1035): It had seen a sharp decline from the recent peak of Rs1,275 in last week of December 2015. In yesterday's trade, selling pressure exhausted and stock attempted a resumption of new rally after making a piercing line pattern, which is considered a bullish candlestick reversal pattern. This formation appears during a downtrend, it suggests that a bottom could be forming. (Duration 5 days)
Derivative strategies (Time period: Till expiry)
² Buy RELINFRA Call March 420 above rs 21.5 with SL of 11.5 for target of 42
Lot size: 1300 Remarks: Net maximum profit of Rs26,650 and net maximum loss of Rs13,000
Corporate Snippets
² Lupin is setting up a new plant in Japan and investing Rs1bn in a manufacturing facility in India which will cater to the Japanese market. (ET)
² The hydrocarbon engineering arm of L&T has signed a long-term agreement with McDermott International for subsea projects in deepwater segment in the east coast of India. (BL)
² Leading global telecom operators including China Mobile, Vodafone, Bharti Airtel and SoftBank have joined hands to launch five-year programme GTI 2.0, which aims to advance existing 4G technology and industrialization of 5G technology. (BS)
² The government is working to increase coal production by Coal India Ltd to 1,000 mn tonne in the next four years through the use of latest environment-friendly technology. (ET)
² Jet Airways said it has inked a codeshare pact and loyalty exchange programme with the Korean Air which will allow passengers of the two airlines seamless travel between India and South Korea. (ET)
² Videocon Telecom said it aims to generate revenue of Rs100bn by 2020 from its newly carved out vertical of emerging businesses. (BS)
² IDBI Bank has priced its equity shares to be issued to the Life Insurance Corporation of India at Rs53.44 per share. The size of the equity offer is Rs 15bn. (BL)
² Wockhardt said it has raised Rs360m from promoter group companies. (BS)
Economy snippets
² The Centre has released Rs19.3bn till January-end this fiscal under its solar programme to encourage use of the renewable source of power. (BS)
² Defence Minister said the government is "actively considering" a separate set up for defence acquisition. (ET)
² The Comprehensive Economic Cooperation Agreement (CECA) between India and Australia is likely to be finalised in the next six months, a senior official said. (BL)
² Food Ministry is seeking a 12.52% increase in food subsidy for the next fiscal at about Rs1.4tn mainly to implement the food law, which is likely to be rolled out in nearly all the states from April. (ET)
Warm Regards,
Amar Ambani
IIFL
You received this message because you are subscribed to the Google Groups "LONGTERMINVESTORSRESEARCH" group.
To unsubscribe from this group and stop receiving emails from it, send an email to longterminvestorsresearch+unsubscribe@googlegroups.com.
Visit this group at https://groups.google.com/group/longterminvestorsresearch.
For more options, visit https://groups.google.com/d/optout.
No comments:
Post a Comment