Sunday, February 21, 2010

Weekly Nifty Update 21 Feb, 2010 by Tanmay G Purohit
Nifty has closed positive +18 points at 4844 positive close 2nd week in a row and Nifty is finding 4950 last 3weeks high as strong resistance. Nifty for a fresh move 4925-4950 level should be crossed with volumes as parliamentary session starts on Monday, Railway budget on Wednesday, Derivative settlement on Thursday and General Budget on Friday will make this week very interesting. Nifty has to hold 4730 and cross 4920 for any fresh move but volatility can be higher than expected as parliament session can throw many surprises and economic survey and policy initiative will be keenly watched, time to wait & watch. HINDALCO, RANBAXY, HDFC BANK, AXIS BANK & TATA STEEL were major gainers in Nifty with more than 5% gains each. BHARTI AIRTEL lost 11% this week after Zain acquisition, UNITECH, REL INFRA and DLF remained other top losers.
Food price index rose 17.97% for the week ended Feb-6 Vs 17.94% in previous week as per government data. The wholesale price index rose 8.56% in Jan from a year earlier, its highest since Nov’08 and accelerating from a 7.3% gain in Dec, data showed but RBI may not hike rates in a hurry until the April policy.
Government raised Urea prices by 10% this week and deregulated other fertilizer prices; which makes Fertilizer stocks attractive once again. This would give way to lower subsidy burden from fertilizers for the government and this indicates may be government wants to reduce fiscal deficit by reducing unnecessary subsidies than raising unessential taxes. As many as 23 firms are awaiting approval from SEBI to enter into mutual fund space, which is already overcrowded with 37 players managing assets over Rs 7 lakh crore; the business has taken a backseat after phasing out of entry load recently but with more players more money may come into stocks which can increase liquidity in long term.
New stocks added in Derivative can show strength ONMOBILE, MUNDRAPORT, AVREVAT&D, APOLLOTYRES look good for short term. Budget stock connected with Insurance should be active EXIDE, DABUR, HDFC, and ICICIBANK. INDUSINDBANK, HCL TECH & GLENMARK are technical picks for the week
Supp 4765/4720/4645 Res 4892/4940/5040

Glenmark: Bright future in the UK and beyond 

Reliance Industries may raise its offer for LyondellBasell that will include cash and stock options for shareholders and creditors, the website reported on Friday

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