Equity Snapshot 9th April , 07

ECONOMY

>> Cold-rolled steel manufacturers, are contemplating an increase in price in the range of Rs 2,000-3,000 per tonne across the board.
>> The petroleum ministry, proposed that state-owned navratna oil majors IOC, BPCL and HPCL be allowed to set their own petrol and diesel prices in the current financial year.
>> India's finance ministry has asked SBI to consider combining its unlisted units with itself.
>> Maharashtra will be the first state to get six imported mega atomic plants of at least 1,600 MW each for its Jaitapur nuclear power project in Ratnagiri.
>> Forex reserves widened to $199.179-bln for the week ended Mar. 30 on the back of a rise worth $1.532-bln in foreign currency and assets.
>> After remaining static at 6.46% for three weeks in a row, inflation eased to 6.39% for the week ended Mar. 24 due to lower prices of food items and some manufactured products.
>> Lending a new twist to negotiations on the tri-nation gas pipeline, Islamabad has offered to sell Iranian gas to India at its border.


CORPORATE

>> Bharat Coking Coal (BCCL) decided to enter into a special purpose vehicle (SPV), with SAIL to develop a two million tonne underground coking coal mine at a total investment of Rs 5-bln.
>> Bilcare lost the patent case over the metallised film in the Delhi High Court.
>> NTPC offered Omani investors a stake in projects requiring a total investment of $3.8-bln in southern India.
>> Petronet LNG (PLL) is set to float a shipping subsidiary, to haul gas to its LNG terminals.
>> PVR Cinemas is considering, setting up 50-60 screens in 7-8 locations in eastern India within the next 5 years.
>> RIL is seeking international price for LPG, it sells to PSUs.
>> SBI has raised its benchmark primelending rate by 50 basis points to 12.75% per annum with effect from Monday.
>> SRF raised around Rs 5-bln from the sale of carbon credits in FY07.
>> Tata Motors expects to sell over 3,000 Fiat branded cars in India during the
current fiscal.


Precision View:
The first day of the last week saw the indices tank down on account of CRR rate hike. This fall was without volumes. Later, we saw a pull back rally with low volumes for the remaining days of the week. But the interesting part of this rally was that the Nifty futures were trading at a huge discount as and when the indices moved up.
For the last many weeks we have been in a broad range with 13,310 and 3,780 as major resistance levels and 12,415 and 3,577 as major support levels on the BSE Sensex and the NSE Nifty respectively. The same has been displayed in the chart shown below. Till the time we do not trade above or below these levels, a broad based move is ruled out and we expect the indices to remain range bound. The main trigger for further direction should be 13th April when the Tech giant - Infosys would announce its Q-4 results along with the guidance. Technically, all the supporting indicators and oscillators on the indices have displayed neutral signals on the daily charts.
Same is the case on the weekly charts.
There are some stock specific stories on the charts like JSW Steel, Tata Steel, Praj, Educomp Soln, IFCI which display enormous strength to outperform the markets.
With the quarterly results nearing, the increase in volatility should making things difficult for the investing community.

Advice – Stay away…