Daily Call April 10th , 07

Markets are likely to open on a flat to weaker note, as positions built yesterday are likely to see profit taking in the morning. Barring that the markets gave a solid account of themselves Monday as the advance –decline ratio was the best in almost 35 sessions. The Sensex registered its 25th gain of 300 points or more yesterday.
Meanwhile, open interest rose by Rs 2228 cr to Rs 46430 Cr. No concerns here so far. Most of the positions seem to have been built in the real estate and banking stocks. SBI and Tata Steel are the Sensex majors that have seen action. Reliance, ONGC, Hind Lever did not see much action with positions being pruned in Infosys and NSE IT Index. The next resistance comes at 13386 in the Sensex and the 3905 level in the Nifty.
Meanwhile, the Bank of Japan’s meeting on interest rates is currently on, where the rates are likely to unchanged at 0.5%. However, investors will do well to see how the Nikkei behaves after the meeting for the final verdict on how our markets would open.

A STRONG BUILD UP
The Sensex’s 321 point rise , has put brought the markets at cross roads, where it is about to end the weak trend. The stress is on ‘about’. That has not happened as yet. There are two things that need to be done. The first is the close above the downward sloping trend line, as shown in the chart below. And the second act that needs to be done is a close above the 13386 mark.
In case that happens, we would need to look forward with optimism. Till then, mid-caps can do well but the Sensex would need to be watched.

After Market Hours
Bank of Baroda has merged its wholly owned subsidiary, BOB Housing Finance (BOBHFL), with itself.
Lanco Infratech's subsidiary Lanco Electric Utility bagged the tender from Damodar Valley
Corporation (DVC) to trade 50 mega watt of power with an option to trade upto 200 MW on availability basis through the competitive bidding route.
Shree Ganesh Forgings has acquired Belgium's Hertecant and France's ELFE from Sweden-based Outo Kumpu.

During Market Hours
Aban Offshore Subsidiary Co. Bags US $ 141 mln Order From GSPC
Adhunik Metalics acquires iron ore miner Orissa Manganese & Minerals Pvt Ltd.
Deep Industries had acquired a service contract from Oil and Natural Gas Corp (ONGC) for development of three onshore marginal fields in Rajasthan.
Dhanalakshmi Bank Board to Meet On April 16 To Mull Rights Issue
Dolphin Offshore, L&T bags contract Worth Rs 184 Cr from ONGC for execution of entire scope of works for 6 Clampon Project
Hindustan Zinc Ups Zinc Prices By Rs 1,200/tn
Indiabulls Real Estate to raise up to $600 million through various means in the domestic or international markets
Kirloskar Brothers has received an order worth Rs 255 crore from IVRCL Navayuga & Sew's joint venture.
Oriental Bank of Commerce to raise Rs 500 crore through private placement of lower Tier II bonds.
Petron Engineering Construction gets extended order worth Rs 30 crore from Obajana Cement, Nigeria.
Praj Ind Board to Meet On April 18 To Mull Bonus Issue
Rane Madras announces its plans to sell 63,162 square feet of land in Chennai city.
Stone India has received an order worth Rs 14 crore for upgrading 1115 wagons from Ministry of Defence, Govt of India.
Trent has entered into an agreement with The Xander Group Inc., a global private equity firm, to expand real estate portfolio in India.