Thursday, Jun 30- Morning brief for the stock market

Stocks To Watch: Oracle Financial, Shriram Transport, steel cos

BIG PICTURE

* Greek parliament approves 5-year austerity plan; to vote again Thu

* India, US to jointly deal with high inflation, capital flows volatility (ET)

TOP EVENTS TODAY

* Annual General Meet of: Energy Products India, Graviss Hospitality, Gujarat Cotex, ICSA (India), Jalan Metallurgical, Nu Tek India, Mehta Housing Finance, Oberoi Realty, Pacific Industries, Parichay Investments, Petronet LNG, Ramkrishna Forgings, Reliance Industrial Infrastructure, Spentex Industries, Sobha Developers, Shree Ram Mills, Sterling Biotech, TCPL Packaging and Zydus Wellness.

* Board Meetings of:

+ Advanta India to consider details of FCCB issue.

+ Indian Bright Steel Co to consider share issue on preferential basis.

+ JIK Industries to consider allotment of shares to bondholders on conversion.

+ Luminaire Technologies to consider transfer of shares tendered under the

open offer in the name of Vandana Cloth Centre.

+ Lords Chloro Alkali to consider the preferential allotment of shares..

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Jun 29: FII 6.69, DII (2.40)

* Institutional net buy/(sale) in bln rupees, Jun 28: FIIs 10.16, MF 1.07

* FII NSE futures net buy/(sale) in bln rupee, Jun 29: index 7.28, shr (0.52)

* Sensex 18693.86, up 201.41 points; Nifty 5600.45, up 55.15 points

* Crude: $94.77/bbl; Rupee: 44.86/$1; Gold: $1,509.90/ounce; 10-yr yld: 8.3183%

OUTLOOK

* Domestic indices may open positive today as Greece's Parliament passed the nation's austerity plan. Trade is likely to be volatile on the last day of expiry of June futures contract.

GLOBAL STOCK MARKETS

* US: Indices ended up on Wed after Greece approved a five-year austerity plan. The US Federal Reserve's decision to cap debit-card transaction fee at 21 cents, lower than that proposed earlier, also supported the upside.

* ASIA: Most markets rose today as Greece passed the nation's five-year austerity plan, moving a step forward to get the bailout package from the International Monetary Fund and the European Union.

SECTOR NEWS

* AUTOMOBILE: Japanese auto major Toyota to hire 2,000 employees in India this year in a move to bolster its market share by launching small cars. (ET)

Toyota to recall over 110,000 hybrid vehicles in the US, Japan, and Europe due to faulty transistors in electrical power control boards. (ET)

* AVIATION: The union law ministry has given an opinion that the aviation ministry has supremacy over the Airport Economic Regulatory Authority. (HT)

* BANKING: Banks have made it mandatory for companies to pay a commitment fee on loans that are not drawn on time; fee is anywhere between 0.25-1.00% of the sanctioned amount. (FC)

* BROKERAGE: Angel Broking has laid off around 2,000 employees in the past six months in order to cut costs. (FE)

* CORPORATE: RBI reiterated an Indian company can transfer or sell its stake in an overseas joint venture to another Indian company without its approval.

* ECONOMY: Prime Minister Singh said his government is committed to annual economic growth rate of 9-10%.

* ENERGY: Australia set to implement the minerals resource tax on exports of coal and iron ore; 22.5% resource tax likely from Jun 2012. (DNA)

* INFORMATION TECHNOLOGY: Hewlett-Packard in talks to license its webOS mobile software. (Bloomberg)

* INFRASTRUCTURE: Tata Realty and Infrastructure Ltd is planning to bid for the Navi Mumbai international airport development and other airports in Pune and Nagpur. (Mint)

* INSURANCE: The General Insurance Corp of India has seen claims of 4 bln rupees from the earthquake in Japan. (ET)

* LAW: The Union cabinet may approve amendments to the law on benami property today. (ET)

* MUTUAL FUND: Securities and Exchange Board of India plans to cap the expiry of a mutual fund license to just one year from the date of issue in order to prevent funds with poor finances from entering the market. (ET)

* OIL AND GAS: Competition Commission of India is probing an alleged cartel by state-owned oil companies in bio-diesel purchase.

Maharashtra government has cut value added tax on diesel and kerosene by 200 bps each.

Maharashtra government to face revenue loss of 14 bln rupees due to the cut in value added tax on diesel and kerosene. (DNA)

Brihanmumbai Municipal Corporation has scrapped octroi on liquefied petroleum gas cylinders. (ToI)

* PHARMACEUTICAL: Bristol-Myers Squibb Co signs agreement with Matrix Laboratories to expand access to anti-retro viral drug Reyataz. (BL)

* REGULATOR: Securities and Exchange Board of India is keeping a close watch on companies that have announced buy back of shares frequently. (BS)

* TELECOM: Vodafone Plc in talks with partner Analjit Singh and other investors on who would pick up the 1.5% stake in its Indian venture. (BS)

STOCKS

* ACKRUTI CITY: Has raised 3 bln rupees from Future Capitals NBFC arm, STATE BANK OF INDIA, and ICICI BANK by mortgaging two fully-built commercial buildings in Mumbai. (ET)

* APTECH: Has got dividend of 503 mln rupees from its Chinese venture.

* CAIRN INDIA: The deal between parent Cairn Energy and Vedanta Resources is listed on the Cabinet Committee on Economic Affairs' meeting agenda today.

* CANARA BANK: Will raise its Base Rate and Benchmark Prime Lending Rate by 25 basis points each to 10.25% and 14.25%, respectively, from Friday.

* COMMERCIAL ENGINEERS & BODY BUILDERS CO: Received an order worth 42.5 mln rupees in Apr-Jun from LARSEN & TOUBRO.

* FERRO ALLOYS CORP: Has declared a lock out at its chrome plant.

* FORBES & CO: Arm Forbes Bumi Armada Offshore has got a 7-year contract from OIL & NATURAL GAS CORP for a floating-production-storage and off-loading vessel.

* INDIAN BANK: To raise $1 bln via medium term notes by mid-July. (BL)

The bank will file a draft red herring prospectus for its proposed follow-on public offer in a month. (BS)

* ITC: Has acquired 26% stake in a joint venture with Espirit Hotels to build a luxury hotel in Hyderabad; stake valued at 450 mln rupees. (ET)

Ramky Group plans to set up a $100 mln integrated waste management complex in technical tie-up with ITC. (var)

* LANCO INFRATECH: Promoter L. Madhusudhan Rao has increased his stake in the company to 4.7749% from 4.5500% earlier.

* MEDIAONE GLOBAL ENTERTAINMENT: Plans to raise up to 1 bln rupees through a follow on public offer of shares.

* NEYVELI LIGNITE: The finance ministry has revived talks with the coal ministry to divest stake in the company. (ToI)

* OIL AND NATURAL GAS CORP: Company board to file a red herring prospectus with the Securities and Exchange Board of India for its 115 bln rupees follow-on public offer. The FPO issue will hit the markets in three weeks from filing the RHP. (BS)

* ORACLE FINANCIAL SERVICES: Former officials have bid for the company's services business; deal in final stages of evaluation. (ET)

* SHRIRAM TRANSPORT: Orix Corp of Japan is in talks with US-based TPG Capital to buy the latter's 20% stake in Shriram Transport Finance Co, for close to 30 bln rupees. (Mint)

* VIDEOCON INDUSTRIES: Has received approval from its shareholders to raise up to 10 bln rupees through equity.

Tuesday, Jun 28 - Morning brief for the stock market

Stocks To Watch: Cairn India; Artson Engg; Future Ventures; Trent
Tuesday, Jun 28 - Morning brief for the stock market:

BIG PICTURE
* Pranab expects Indian econ to maintain FY11 momentum this yr (NW18)
* Pranab urges states to cut taxes on diesel, kerosene, cooking gas. (NW18)

TOP EVENTS TODAY
* Apr-Jun earnings to be detailed by: Transport Corp of India, and Uni Abex Alloy Products.
* Annual General Meet of: Bata India, Elnet Technologies, Dhandapani Finance, Hotel Leela Venture, Kirloskar Pneumatic, Micro Technologies, Oriental Hotels, Prag Bosimi Synthetics, Surana Corp, Unichem Laboratories, and YES Bank.

* Board Meetings of:
+ Consolidated Finvest & Holdings, to consider dividend.
+ Paraan, to consider allotment of shares and convertible warrants.
+ Velan Hotels, to consider dividend.

INDICATORS (previous session)
* NSE provisional net buy/(sale) in bln rupees, Jun 27: FII 14.47, DII (7.66)
* Institutional net buy/(sale) in bln rupees, Jun 24: FIIs 10.22, MF 0.58
* FII NSE futures net buy/(sale) in bln rupee, Jun 27: index (1.83), shr (3.04)
* Sensex 18412.41, up 171.73 points; Nifty 5526.60, up 55.35 points
* Crude: $90.61/bbl; Rupee: 45.03/$1; Gold: $1,496/ounce; 10-yr yld: 8.2621%

OUTLOOK
* Local indices are seen opening slightly positive today, tracking cues in global markets. The upside may be limited due to profit taking, and trade is likely to be choppy ahead of June futures contracts expiry on Thursday.

GLOBAL STOCK MARKETS
* US: Wall Street ended up on Monday, led by banks, as the new capital rules, issued over the weekend, were not as harsh as expected.
A proposal put forth by French lenders to help Greece avoid a debt default by allowing slower repayment of loans also supported sentiment.
* ASIA: Asian markets gained on hope French and German lenders may allow Greece to rollover 70% of its debt into longer-term bonds, helping the nation to avoid a debt default.

SECTOR NEWS
===========
* AUTOMOBILES: Toyota Kirloskar has forayed into the hatchback market in India with the launch of its Etios Liva car.
All India Motor Transport Congress says freight rates could go up 8-16% if the government does not rollback part of the fuel price hike. (DNA)

* AVIATION: Air India warns the government on likely default in interest payments on foreign loans worth 150 bln rupees. (BS)
The Comptroller and Auditor General is working on a special audit on Air India-Indian Airlines merger. (BS)

* BROKING: The finance ministry has decided to allow foreign direct investment in proprietary trading. (BS)

* CORPORATE: Several Indian companies have begun exploring possibilities to get cheaper loans from China to meet their foreign borrowing obligations.
(PTI)

* ECONOMY: Planning Commission Deputy Chairman Montek Singh Ahluwalia has said fuel price hike would not affect inflation after three to four months.

* GOVERNMENT: India's ambassador to France Ranjan Mathai will be the next foreign secretary.

* INFRASTRCTURE: The Jawaharlal Nehru Port Trust will open bids today for its fourth container terminal. DP World, Port of Singapore Authority, GVK Power and Infrastructure Ltd and Sterlite Industries are among the short-listed bidders. (BL)

* INSURANCE: The Parliamentary Standing Committee on Finance may rule against raising the cap on foreign direct investment in the insurance sector to 49%
from the current 26%. (BS)

* MONSOON: India Meteorological Department has said Jun 27 rainfall 17% above normal; Jun 1-27 rainfall 9% above normal

* PORT: The Jawaharlal Nehru Port Trust will open request-for-proposal bids submitted by five companies to develop the fourth container terminal at the port today.

* REAL ESTATE: The proposed Real Estate Regulation Bill is likely to be delayed as the ministry of housing and poverty alleviation is yet to get the law ministry's opinion. (BS)
Real estate investment and development firm South Asian Real Estate has clinched a deal to buy 100-acre land in Navi Mumbai from Silver Oak. (var)

* STEEL: Karnataka farmers prepare to oppose land acquisition for Posco India's proposed 6 mln tn per year steel plant near Gadag. 275 farmers have
already filed objections with the Industrial Area development Board. (BL)

* SUGAR: Agriculture Minister Sharad Pawar has sought Prime Minister Manmohan Singh's intervention to finalise ethanol pricing and ensure smooth supply in 2011-12 sugar season starting Oct. (BS)
.
* TELECOM: Department of Telecommunications has recommended the Telecom Regulatory Authority of India to review and finalise spectrum pricing by Dec
31 every year. (BS)

STOCKS
======
* ARTSON ENGINEERING: Gets order worth 210 mln rupees.
.
* BANK OF MAHARASHTRA: Has launched a co-branded credit card with SBI Cards and Payments Services Pvt Ltd.

* BIRLA CORP: Has sought environment ministry's nod to increase cement manufacturing capacity at its Chanderia plant by 1.5 mln tn per annum.

* CAIRN INDIA: Vedanta Resources not to pay non-compete fee to parent Cairn Energy; Cairn Energy to sell Indian arm's stake to Vedanta in two tranches of
10% and 30%; 30% stake to be subject to government approval. (var)

* CONSOLIDATED CONSTRUCTION: To raise $100 mln via securities issue.

* DISH TV: Promoter Veena Investments revokes 10.5 mln pledged shares of the company.

* FUTURE VENTURES: Kishor Biyani-led Future group to charge royalty from group firms for use of the brand name. Future Ventures will be the first to pay royalty to the Future Ideas Co, a promoter group entity. (FC)

* OIL AND NATURAL GAS CORP: Says Essar, Great Eastern Energy, and Australia-based Dart Energy have expressed interest in picking a significant stake in the company's coal-bed methane blocks in Bokaro, Jharkhand, and Raniganj. (ET)
.
* RAJAPALAYAM MILLS: Has approved 1-for-1 bonus share issue.
.
* RELIANCE INDUSTRIES: The Comptroller and Auditor General says company was consulted before finalising the draft performance audit on hydro carbon
production sharing contract at KG-D6. (PTI)
.
* RESURGERE MINES: Promoter Subhash Sharma pledges 18.75 mln shares in the company.
.
* SESHASAYEE PAPER: Company finalises plans to expand production capacity from 2.1 mln tn to 5 mln tn a year. (BL)

* STERLITE IND: The National Environment Engineering and Research Institute has not found any excess percentages of arsenic, zinc or fluoride than the
permissible limits in and around Sterlite Industries' Thoothukudi copper smelter plant. The study had been ordered by the Supreme Court. (BL)
.
* SURANA INDUSTRIES: Board authorises company to raise $100 mln via issue of shares. Company may raise funds for expansion.
.
* TECH MAHINDRA: Plans to scale up Africa operations, declared Nigeria as headquarters for business process outsourcing operations in Africa. (
.
* TORRENT PHARMACEUTICALS: Plans to launch 35-40 drugs in Brazil in the next two years. (BS)
.
* TRENT: In talks with Spanish retailer Inditex group to bring one more brand Massimo Dutti to India. (BS)
.
* VISESH INFOTECNICS: Board approves merger of Axis Convergence with the company. The merger to add substantial value to the company.

June' 26: Sensex once again above 18000

Last time when I had written the article Nifty was trading well above the 5350 levels. In the Intaweek Nifty made a low below the 5200 levels and once again we are back to 5500 levels. Isn’t that too fast recovery, when nothing has been changed in the fundamentals of India. Its just the games which FII play. Till Wednes FII remained net seller in the Indian Equity market while DII kept on buying, since Thursday FII have changed their mood and are net Buyers and the markets have also changed its way.

It was the repeat of the usual Black Monday’s this week but the reason of something different. This time the Indian government is in talks with the Mauritius to sign the tax treaty. Fears were there that the double taxation treaty between the India and Mauritius may be renegotiated after which FIIs would need to pay capital gains tax on their equity investments in India. Approx 40% of the FII holdings in India companies, estimated at about $280bn, is believed to have been routed through Mauritius. News sparked panic selling in the Indian markets, Sensex in its intraday trading session collapsed more that 500 points but close nearly 360 points down.

Major Indices, Nifty & Sensex surged nearly 2% each. IT index jumped 2.7%, Cap Goods surged 1.5%. But Realty Sector continued its downtrend and closed down more that 4.5%. In the Frontline stocks Hero Honda gained the most 7.7%, Hdfc closed up by 4.5% on week on week basis. ACC 5%, M&M 4.2% & Bajaj Auto 3.7% Wipro 3.5%. Ril Infra lost 8%, Cairn 5.1%. DLF lost 3.4%, while Dr Reddy closed down 3.8%. Maruti is trading after making its 52 week low closed down 4.1%.

One, crude oil has gone down; two, a bailout for Greece seems to be happening, and three, there is a strong covering of short positions made when news of tax treaty with Mauritius had come. Concerns over Greece's debt crisis abated as on Thursday the International Monetary Fund and the European Union agreed to support the nation if it

implements further austerity measures such as tax hikes and spending cuts.

Rumours of the Selling of the Pledge shares continued in the market. Orchid was one of the script that has seen one of its very volatile trading week. In the Intra week trading session the script made a high and low of 265-215. Selling in Skumar, Shree Ashtvinayak, GTL infra, Havells, Alstom, Unitech continued.

This might have surely been proved to be bad for the Indian markets, But the readers of my blog and Informed investors would have definitely gained a lot. On 14th June and the last article dated 18^th June 2011 in Informed Investor, technical chart of the Nifty was given with a price target ot 5177 in Nifty from the break of 5350 levels. Nifty made a low of 5196 and bounced back. But the bottom line is that the Nifty made a low of below 5200 levels. We could clearly see that the Head and Shoulder (H&S) Pattern was made in the Nifty daily chart pattern.

But the Nifty have bounce back sharply till the end of the week. Nifty made a high of-----5478 & Low of 5196 for the week. The recovery had been too fast. No boubt the H&S patter formation was complete but it did not continue. Nifty bounced back from its over sold zone. Nifty once again took good support at 5200 levels and bounced back. I am still cautious on the recovery of the market. Nifty still have a big resistance levels at 5475-5560 levels.

If we take a new retracement levels from the high of 5944 made on 06^th Apr 2011 and a low of 5196 made on 20^th June 2011 (Green colour). Nifty crossed it 23.60% retracement levels 5375 and closed at its 38.2% levels.

Last weeks call

Sell Acc below 959 SL 963. Made a low of 918.

Sell Andhra bank below 132.80 SL 133.80. Made a low of 127.

Buy Bharti Airtel close above 385 SL 380.Made a high of 398.

Sell Cipla below 328 SL 331. Made a low of 310.

Buy Hind Petro above 390.

Wednesday, Jun 22

Stocks To Watch: Idea Cellular, ONGC, TCS, Infosys, NMDC, steel

Wednesday, Jun 22 - Morning brief for the stock market:

BIG PICTURE

* IMD cuts monsoon forecast to 95% of long period average from 98% .

TOP EVENTS TODAY

* Annual General Meet of: Andhra Bank, Dhanlaxmi Bank, Navin Fluorine International, Ramkrishna Forgings.

* Board Meetings of:

+ Tulsyan NEC to consider dividend.

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Jun 21: FII (5.63), DII 4.30

* Institutional net buy/(sale) in bln rupees, Jun 20: FIIs (4.27), MF 3.38

* FII NSE futures net buy/(sale) in bln rupee, Jun 21: index 4.92, shr 2.37

* Sensex 17560.30, up 53.67 points; Nifty 5275.85, up 17.95 points

* Crude: $93.78/bbl; Rupee: 44.84/$1; Gold: $1,547.20/ounce; 10-yr yld: 8.2256%

OUTLOOK

* Local share indices are likely to jump in early session today as fear that Greece may default on its debt may be allayed after its government won a no-confidence vote in the Parliament on Tuesday.

GLOBAL STOCK MARKETS

* US: Shares rallied for the fourth session to end up on Tuesday amid rising hope that Greece will be able to avoid a default on its debt payment in July.

* ASIA: Asian markets soared today as Greece's Prime Minister George Papandreou's government won a no-confidence vote in the Parliament on Tuesday, boosting expectation that the nation will not default on its sovereign debt.

IPO WATCH:

* Tata Autocomp plans to raise 7.5 bln-11.0 bln rupees through an initial public offering in the next two-three weeks. (var)

SECTOR NEWS

* AUTOMOBILES: Renault plans to launch a new hatchback in 2012 that will compete with MARUTI SUZUKI INDIA's Swift. (var)

* AVIATION: Low cost airline IndiGo is close to signing a final agreement with Airbus for purchase of 180 aircrafts. (ET)

* BANKING: Finance minister will meet chiefs of public sector banks on Jul 8 to take stock of the current environment of high lending rates. (BS)

* CHEMICALS: Aditya Birla Group completes acquisition of Columbian Chemicals.

* CLIMATE: India Meteorological Department cuts projection on southwest monsoon rains to 95% of long-period average from 98% earlier.

* COAL: A Group of Ministers on coal has decided to set up a committee headed by Planning Commission member Chaturvedi to look into the no-go area imbroglio. (BS)

* CORPORATE: Tata and Infosys have emerged top two brands in India in a new index. (ET)

SEBI will take a final call on the new takeover code after taking into account the government's view. (ET)

Ministry of corporate affairs has formed a core committee to look at the issue of regulatory overlap in the new Competition Act. (FE)

* ECONOMY: Standard Chartered economist Anubhuti Sahay says weak monsoon rains may erode rural demand, fan inflation.

* EXCHANGES: Forwards Market Commission proposes to come out with uniform transaction charges across exchanges. (BS)

* FINANCE: Government is mulling various options to reduce hedging costs under the proposed Infrastructure Debt Fund in case the money is raised via dollar-denominated bonds.

* GOVERNMENT: West Bengal Chief Minister Mamata Banerjee says she is opposed to forcible land acquisition.

* INDUSTRY: West Bengal Chief Minister and head of All India Trinamool Congress Mamata Banerjee said she was against any kind of forcible land acquisition.

* INFORMATION TECHNOLOGY: TATA CONSULTANCY SERVICES, INFOSYS AND HCL TECHNOLOGIES are in race to acquire banking product software business of UK's Misys. (ET)

* INSURANCE: Companies which have completed 10 years of operations and have strong financials will be allowed to tap capital markets. (var)

* MARKET: Life Insurance Corporation of India has decided to chop off 57 illiquid scrips from its portfolio. (FE)

* MUTUAL FUNDS: SEBI may make it mandatory for asset management companies to disclose the track record of their fund managers while promoting equity-oriented schemes. (Mint)

* PORTS: The regulator of India's major ports has rejected request of port terminals to increase rates and even asked for up to 35% cuts in some cases. (Mint)

* STEEL: PSU Steel makers have agreed to monthly price revision of coal by BHP Biliton for at least 50% of the buy. (HBL)

* TELECOM: Bombay High Court has allowed telecom companies to pay customs and excise duties on imports via credit scrips for an amount up to 10% of exports. (ET)

STOCKS

* AUTOLINE INDUSTRIES: Neither the company nor its promoters are in stake sale talks with the Ruia Group.

* AXIS BANK: Opens representative office in Abu Dhabi.

* BAJAJ AUTO: Partner in small car project Renault has said it may go solo on the project. (ToI)

* BHARTI AIRTEL: Tower subsidiary Bharti Infratel has begun exploratory talks with merchant banks for advice on a possible public listing.

* GAIL INDIA: Is looking to expand rapidly in city gas distribution and related pipeline infrastructure business. (BS)

* GREAT OFFSHORE: The company's board has approved a contract to Pinky Shipyard for building three support vessels, which are to be delivered by 2013.

* HDFC BANK: May buy 1% stake in Bombay Stock Exchange at 375 rupees a share through the preferential allotment route. (ET)

* HINDUSTAN PETROLEUM CORP: Over the weekend, leakage in the company's pipeline carrying diesel from a ship at Mundra port in Gujarat resulted in a "minor" oil spill, which was brought under control "soon".

* IDEA CELLULAR: CBI has closed its investigations into the company after it found nothing wrong in the way it was allocated spectrum. (ET)

* INDIAN OIL CORP: Plans to raise $500 mln from overseas markets for its expansion.

* ING VYSYA BANK: Raises Base Rate by 25 basis points to 9.70% with immediate effect.

* KINGFISHER AIRLINES: Plans to add 72 aircraft to its fleet by 2015-16 (Apr-Mar), up from 67 planned earlier.

* MYSORE PETRO CHEMICALS: Shuts Raichur catalyst unit for maintenance for three weeks.

* NMDC: May acquire controlling stake in a coking coal mine from a Russian group. (ET)

* OIL AND NATURAL GAS CORP: Is in talks with BG Group and Italy's Eni to sell stake in its block in Krishna-Godavari basin. (Reuters)

* RASHTRIYA CHEMICALS AND FERTILISERS: Upcoming presidential elections in Ghana may upset plans to set up a $1 bln urea factory in the country. (Mint)

* RELIANCE INDUSTRIES: Differs with partner Niko Resources on potential of satellite discoveries around its KG-D6 block. (FC)

* STATE BANK OF INDIA: Cuts 2011-12 (Apr-Mar) credit growth estimate to 16-19% from 19-20% earlier. Witnessing some slowdown in corporate lending.

Head expects the bank's CAMELS--capital, adequacy, asset quality, management quality, earnings, liquidity and sensitivity--rating issued by the Reserve Bank of India to improve in 2010-11 from the previous financial year.

* TATA MOTORS: Promoter Tata Sons revokes 6 mln pledged shares of the company.

The company has moved Calcutta High Court challenging the legality of the Singur land return act. (ToI)

* VIJAY TEXTILES: To mull sale of stake in the company's Hyderabad information technology park project on Jun 29.

* WOCKHARDT: Launches three new products in three weeks in the US.

Tuesday, Jun 21:

stocks To Watch: HCL Tech, L&T, Jyothy Lab, SBI, Oracle Financial

Morning brief for the stock market:

BIG PICTURE

* Cyprus tax practitioners weigh options as India-Mauritius tax treaty faces heat (ET)

* Greece asked to OK strict austerity measures for further 12 bln euro loans (var)

TOP EVENTS TODAY

* Annual General Meet of: De Nora India, Goodyear India, Magma Fincorp

* Board Meetings of:

+ Surana Ind to mull funding options for co's expansion projects

+ Great Offshore to consider dividend

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Jun 20: FII (5.13), DII 8.63

* Institutional net buy/(sale) in bln rupees, Jun 17: FIIs (3.63), MF 0.28

* FII NSE futures net buy/(sale) in bln rupee, Jun 20: index 7.89, shr 1.39

* Sensex 17506.63, down 363.90 points; Nifty 5257.90, down 108.50 points

* Crude: $93.26/bbl; Rupee: 45.00/$1; Gold: $1,540/ounce; 10-yr yld: 8.1926%

OUTLOOK

GLOBAL STOCK MARKETS

* US: Bargain buying amid easing concerns over the Greek debt crisis helped US share indices end on a positive note on Monday.

* ASIA: Asian markets were up as worries over Greece's debt crisis eased after Eurozone Chairman Jean-Clause Juncker assured private investors will be part of any second rescue package for Greece, though he was unsure if they would be "enthusiastic".

SECTOR NEWS

* BANKING: All India Bank Employees Association has called a nationwide strikeon Jul 7 to protest the government's banking sector reforms. RBI is likely to allow domestic banks to participate in the proposed infrastructure debt funds through their mutual fund arms. (FE)

* CONGLOEMRATES: Tata Sons raises 2 bln rupees via 3-year bonds.

* ECONOMY: Government of India confirms May consumer price index for farm workers inflation at 9.63% as against 9.11% in April.

* INSURANCE: United India Insurance Co not in favour of allowing banks to sell policies of multiple insurers.

* LEGISLATION: Govt claims broad consensus on Lokpal bill, to meet Anna team again today.

* METALS: Global aluminium production 2.17 mln tn in May, up 110,000 tn from the same period last year, and 60,000 tn higher compared with April.

* OIL & GAS: Oil Minister S. Jaipal Reddy seeks 8 weeks to respond to the Comptroller and Auditor General of India's draft report that alleges his ministry bent rules to favour some private companies.

Government is open to revisit its profit sharing formula for awarding hydrocarbon blocks. (var)

* PRIVATE EQUITY: HSBC Principal Investments, a private equity arm of HSBC Group, has bought minority stake in city-based Avitel Post Studioz Ltd, for $60 mln.

* RETAIL: Government is likely to permit foreign direct investment in multi-brand retail only in the six metro cities. (BS)

* TEA: Major companies have raised tea prices by 5-7 rupees a kg to offset rising input costs. (FE)

* TELECOM: Revenue market share of BHARTI AIRTEL, RELIANCE COMMUNICATIONS and Bharat Sanchar Nigam have declined over 1% in 2010-11 (Apr-Mar). (ET)

A department of telecommunications panel has accepted most of TRAI's recommendations on mergers and acquisitions rules. (BS)

STOCKS

* AXIS BANK: In pact with Life Insurance Corp of India to launch LIC credit cards.

* BIRLA CORP: Company law board has rapped the company for entering capital markets business without clear approval from shareholders. (FE

* BOMBAY DYEING AND MANUFACTURING CO: Plans a turnaround strategy by reducing dependence on real estate and cut debt by half in 2-3 years. (Mint)

* DS KULKARNI DEVELOPERS: Maharashtra government notifies company's Pune project.

* EDUCOMP SOLUTIONS: Has sought shareholders' approval to raise up to $250 mln and restructure $78.50 mln foreign currency convertible bonds.

* EMAMI: Is considering entry into packaged foods and premium toiletries. (DNA)

* GAIL INDIA: The company and Uttarakhand Jal Vidyut Nigam plan to set up two 350-500 MW gas-based power plants in the state.

* GAYATRI PROJECTS: Is planning to sell stake in a 22-bln-rupee highway project in Andhra Pradesh to Megha Engineering. (DNA)

* GODREJ CONSUMER PRODUCTS: Expects to add revenue of over 15 bln rupees in 3-5 years as it leverages synergies from integration of Godrej-Sara Lee. (Mint)

* HINDUSTAN ZINC: Cuts zinc price by 2,300 rupees per tn to 115,600 rupees; cuts lead price by 1,100 rupees per tn to 129,700 rupees.

* HCL TECHNOLOGIES: Signs a five-year contract with Xerox Corp to provide product engineering services.

* INDIABULLS REAL ESTATE: Has been served notice to stop work on its commercial and residential project at Elphinstone Mills in Lower Parel Maharashtra Pollution Control Board. (HT)

* INDIAN OIL CORP: Has held back advance tax payment for Apr-Jun on delay in fuel price revision and uncertainty on subsidy sharing. (BS)

* JYOTHY LABORATORIES: Private equity Apax Partners is close to a deal to buy stake in the company. Broad agreement on price of 330 rupees per share. (ToI)

* LARSEN & TOUBRO: Private equity Capital International is leading a race to buy below 5% stake in arm L&T Finance for around 4 bln rupees. (ToI)

* MAHINDRA & MAHINDRA: Is planning to set up a new plant, probably in Punjab, to make farm equipments. (HBL)

* NAGARJUNA FERTILISERS AND CHEMICALS: Promoters will up their stake by 13% through circuitous route for 300 mln rupees instead of current valuation of 1.75 bln rupees. (ET)

* NTPC: Trading arm has been given the mandate to carry out cross border electricity trade between India and Bangladesh. (HBL)

* NIIT TECHNOLOGIES: To host data centre for Delhi airport cargo complex.

* ODYSSEY CORP: Has entered into film distribution business by acquiring the exclusive theatrical rights of three films.

* OIL AND NATURAL GAS CORP: Plans to invest $7.7 bln to develop its gas fields in KG basin, is scouting for a partner. (ET)

Government has appointed three independent directors on the company's board clearing way for its FPO. (PTI)

*ORACLE FINANCIAL SERVICES SOFTWARE: Cognizant Technology and Capegemini are among bidders in talk to buy financial services business unit of the company. (ET)

* POWER FINANCE CORP: To pay 1.50 rupees per share final dividend.

* SAKSOFT: Has signed a 50:50 joint venture with SOFGEN India called Sofgen Testing Services to offer software testing services in the T-24 core banking space.

* SIEMENS: Mobility unit gets 1.65-bln-rupee order from Delhi Cargo Service Center to set up cargo handling equipment at Delhi airport.

* STANDARD INDUSTRIES: Peninsula Mega City will develop a 62.25 acre land of the company in Navi Mumbai and pay 1.13 bln rupees over five years.

* STATE BANK OF INDIA: 200-bln-rupee rights issue is likely in Oct-Dec.

Head says bank officials will study liquidity before acting on rates.

Looking to increase its focus on improving asset quality, will have one deputy-managing director focussing on non-performing asset management.

Monday, Jun 20

Stocks To Watch: Reliance Infra, Reliance Comm, TCS, Cadila, retail

Monday, Jun 20 - Morning brief for the stock market:

BIG PICTURE

* Pranab says RBI's monetary measures if "extended" may hurt growth

* RBI Chakrabarty says to hike rates more if needed to curb inflation

* IMF cuts US 2011 econ growth forecast to 2.5% vs 2.8% earlier

TOP EVENTS TODAY

* Jan-Mar earnings to be detailed by Bimetal Bearings.

* FY11 earnings to be detailed by Prime Focus.

* Annual General Meet of: Kew Industries, LG Balakrishnan & Bros, Responsive Industries, and State Bank of India.

* Board Meetings of: Prime Focus, RPP Infra Projects, and Xpro India Prito to consider dividend.

+ Nelcast to consider stock split.

+ Abirami Financial Services to mull making loans to and invest in

bodies corporate and to provide guarantees and securities.

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Jun 17: FII (3.90), DII (0.353)

* Institutional net buy/(sale) in bln rupees, Jun 16: FIIs (4.23), MF 0.446

* FII NSE futures net buy/(sale) in bln rupee, Jun 17: index (2.99), shr (1.38)

* Sensex 17870.53, down 115.35 points; Nifty 5366.40, down 30.35 points

* Crude: $93.01/bbl; Rupee: 44.86/$1; Gold: $1,539.10/ounce; 10-yr yld: 8.27%

WEEKLY SECTOR OUTLOOK

* AUTO: Seen tailing broad market.

* BANKS: Seen weak on expected margin dip after RBI rate hike.

* CAPITAL GOODS: Seen range-bound with a slightly weak bias.

* CEMENT: Seen under pressure on monsoon, SFIO probe.

* FMCG: Seen range-bound tracking broad market.

* INFORMATION TECHNOLOGY: Seen down on global growth worries.

* OIL: State-owned oil retailers seen up; Reliance Ind may hit new lows.

* PHARMACEUTICAL: Seen trading in a range with downward bias.

* STEEL: May slip on slower industrial growth.

* TELECOM: Seen weak on global economic worries.

OUTLOOK

*Share indices are likely to open flat to slightly up tailing gains in most overseas markets on hopes European officials may reach a consensus on financial aid to debt-laden Greece.

GLOBAL STOCK MARKETS

* US: Indices ended mixed on Friday, with the Dow Jones and S&P 500 indices ending firm on news that France and Germany agreed on a deal to support the debt-ridden Greece.

* ASIA: Key Asian markets were trading slightly higher on hopes European officials would manage to chart out a mutually agreeable deal on rescuing debt-ridden Greece as France and Germany showed inclination to support the same.

SECTOR NEWS

* AVIATION: Air India has not paid May salaries to its 33,000 employees and 7,000 casual workers. (Mint, Mon)

* CAPITAL GOODS: BHARAT HEAVY ELECTRICALS, LARSEN & TOUBRO, NTPC plan to recruit 4,000 employees to take their staff strength to over 50,000 by March. (BL, Sat)

* CHEMICALS: Denmark-based Hempel plans to set up a plant in Maharashtra to manufacture paints with an investment of 1 bln rupees. (BL, Sat)

* CORPORATE: Market capitalisation of the Tata group has overtaken that of Reliance Industries and Reliance ADAG group put together. (PTI, Mon)

* ECONOMY: IMF cuts global 2011 econ growth forecast to 4.3% vs 4.4% earlier.

IMF keeps India 2011 econ growth forecast unchanged at 8.2%.

GDP base may be shifted to 2011-12 (Apr-Mar). (ET, Mon)

* ENERGY: Petroleum ministry has pulled up GAIL (INDIA) and oil retailers for bidding to get gas pipeline projects when gas availability is uncertain. (NW18)

The government wants to increase the exposure norms of Indian banks to fund power sector. (Mint, Mon)

* EXPORT: The government Friday notified the extension of Duty Entitlement Pass Book scheme for exporters by three months to Sep 30.

* FMCG: Companies are tightening advertising and marketing spends to maintain margins. (PTI, Mon)

* HEALTHCARE: UK's Actis plans to sell its 80% stake in Gujarat-based Sterling Hospitals. (var, Mon).

* INDUSTRY: Land acquisition for Posco's steel project in Gobindpur and Dhinkia villages in Odisha has been postponed due to stiff resistance from villagers. (BS, Mon)

* MONSOON: India Meteorological Department says monsoon reaches parts of eastern Uttar Pradesh and Vidarbha while covering entire Bihar, Jharkhand, and Odisha.

* POLICY: A two-member committee set up by the West Bengal government may allow corporates to acquire up to 5 ha without seeking the government's permission. (ET, Sat)

* PUBLIC SECTOR: Cabinet to soon take up the proposal of granting conditional 'Maharatna' status to BHARAT HEAVY ELECTRICALS and GAIL (INDIA). (HT, Sat)

* REAL ESTATE: ICICI Venture Funds Management Co plans to raise 7.5-10.0 bln rupees for its second real estate fund, the India Advantage Fund. (var, Sat)

* REGULATORY: SEBI may finalise takeover rules by June-end; trigger point for making an open offer may be raised to 25% from the current 15%. (HT, Sat)

SEBI says merchant bankers, underwriters, and registrars to an issue need not take the prior approval before effecting a change in their constitution or status.

SEBI has directed companies to dematerialise their entire promoter shareholding by Sep 30.

* RETAIL: The government has reached a consensus to allow foreign direct investment in multi-brand retail, but with stiff riders. (BS, Sat)

* TAX: Finance Secretary Sunil Mitra said the total tax refund target for the 2011-12 (Apr-Mar) is seen at 1.05 trln rupees.

* TELECOM: CBI is examining new set of documents to determine Essar Group's holding in Loop Telecom. (ET, Mon)

CBI is likely to probe dual technology policy and the way it was implemented by former telecom minister A. Raja. (FE, Mon)

STOCKS

* ACKRUTI CITY: Private equity firm Milestone Capital Advisors has invested 1 bln rupees in one of the company's residential projects. (Mint, Sat)

* APOLLO HOSPITALS ENTERPRISE: Group may hive off its pharmacy business into a separate entity in 18 months. (HBL, Mon)

* ARVIND: Plans to add two new overseas brands to its portfolio in 2011-12 (Apr-Mar). (BL, Sat)

* BHARAT HEAVY ELECTRICALS: Its electronics division has won a 620-mln-rupee turnkey contract from Karnataka Power Corp to set up a 5-MW solar power plant. (BL, Sat)

* CADILA HEALTHCARE: Its indirect subsidiary Zynesher Pharmaceuticals USA LLC signs pact to buy assets of US-based Nesher Pharmaceuticals Inc.

* GRASIM INDUSTRIES: And BOMBAY DYEING AND MANUFACTURING CO have been dragged to Competition Commission of India for allegedly abusing their dominant position. (FE, Mon)

* GREAT EASTERN SHIPPING CO: Has sold and delivered its 1989-built Suezmax crude carrier Jag Lakshya' to the buyers.

* IDBI BANK: Has raised deposit rates in two maturities by 25 basis points each, but has maintained a status quo on loan rates "for now".

* INFRASTRUCTURE DEVELOPMENT FINANCE CORP: To raise at least 1 bln rupees through 25-month bonds.

* LANCO INFRATECH: May go slow on expansion of its Andhra Pradesh gas-based power plant due to domestic gas supply shortage. (BS, Sat)

* MANAPPURAM GENERAL FINANCE& LEASING: Is planning a non-convertible debenture issue in July. (HBL, Mon)

* MAX INDIA: Has got board approval for acquisition of 16.37% stake in Max Healthcare Institute from Warburg Pincus group for 1.4 bln rupees.

* NATIONAL ALUMINIUM CO: Is planning to acquire up to 30% stake in a coal supplier in Indonesia. (FC, Mon)

* NHPC: Is looking at submitting a revised detailed project report for two of its projects in Myanmar by Dec. (Mint, Sat)

* NTPC: Coal ministry may warn the company that two more of its coal blocks may be de-allocated if not developed immediately. (PTI, Mon)

* OIL AND NATURAL GAS CORP: Cabinet has approved the merger of the company's Russian arm with Sistema promoted Bashneft and Russneft. (ET, Mon)

* PSL: Plans to enter the port construction business and invest up to 5 bln rupees in building a jetty at the Kandla port in Gujarat. (ET, Sat)

* RELIANCE COMMUNICATIONS, RELIANCE INFRASTRUCTURE: To be excluded from the Sensex from Aug 8. SUN PHARMACEUTICAL INDUSTRIES and COAL INDIA to replace the shares in the index.

* RELIANCE INDUSTRIES: Is believed to have hired STATE BANK OF INDIA, Bank of America, and Citigroup, among others, to raise around $1.1 bln debt. (PTI, Sat)

* RELIANCE POWER: Company's Krishnapatnam ultra mega power project is facing hurdles because of several reasons. (var, Mon)

* SIEMENS: Acquires 16% stake in US-based solar power company Semprius. (BL)

* SPICEJET: Kal Airways Pvt Ltd, one of the promoters, has pledged 20.70 mln more shares of the company on Jun 3.

* STANDARD INDUSTRIES: In pact with Peninsula Mega City Development to develop 62.25 acres of land near Ghansoli in Navi Mumbai.

* TATA CONSULTANCY SERVICES: Income Tax department has asked the company to pay 6.56 bln rupees relating to the assessment year 2007-08. (FE, Sat)

* TATA MOTORS: Chairman Ratan Tata has said that by 2020 the company should be "more mature". (PTI, Mon)

* TATA STEEL: Company's joint venture Tata Steel Minerals Canada in pact to develop New Millenium Iron Corp's direct shipping iron ore project in western Labrador and north-eastern Quebec. (BL, Sat)

* TIMKEN INDIA: US parent is likely to make an open offer for 20% shares of the company. (DNA, Mon)

* UNION BANK OF INDIA: Chairman and Managing Director M.V. Nair says high interest rates may pressure credit offtake in 2011-12 (Apr-Mar) and the bank may revisit its credit growth target for the year, if necessary.

* VISAGAR POLYTEX: Gets shareholders' approval to issue up to 446,400 warrants at 112 rupees each.

* WIPRO: Promoter Rishad Premji, son of Chairman Azim Premji, sold 260,000 shares of the company at an aggregate value of 110.28 mln rupees.

Sun 19th June: Are we heading towards 5200 levels ????

India’s Inflation rose to a higher than expected 9.06% in May, highlighting the limits of successive rate increases in taming price rise and raising the central bank’s monetary tightening cycle could now run longer than previously thought. High inflation is something that India will have to live with but our outlook on India is more constructive than the consensus at present.

Domestic equities are likely to trade with a weak bias next week on lingering nervousness that Greece may default on its sovereign debt and on concerns over slowing recovery in the US economy China’s Central Bank raised the reserve ration by 50bps on Tuesday for the ninth time since Oct to curb inflation, which is running at its fastest pace in almost three years.

The market is not doing well due to fears that Greece may default on its debt and US economy is slowing down. Also, inflation is still a lingering concern, and continuous rate hikes by the central bank will keep corporate earnings weak in coming months. So all in all, it’s a bleak situation for India Inc and the markets.

Indices tanked more the 2% in a week. Midcap stocks closed down 1.2% while Smallcap Index 1.4%. IT Index closed down 4.45%. Bankex 1.1% after the 0.25bps bike in the Repo Rate. Oil & Gas down nearly 5%, Auto Index 2%. Ril ind was one of the major losers in the Nifty Index which tanked nearly 8.2% in week, after rumor’s that there is some problem in the books of the Company and some gas issues. IDFC closed down 10%, Wipro 6.5% while Tcs closed down 6%. On the other side ADAG stocks gained. Rcom surged 3%, Ril Infra 6.5% and Bpcl 3.5%. On the Midcap side A2Z surged 20%, Sks Micro fin gained 16%, Philips 11%.

As mentioned in the earlier article also, that the Indian markets are under pressure and we may witness selling pressure in the coming week. Nifty below 5450 levels looks weak to me. And it happened the same. Nifty close down at 5366 levels.

On Tuesday, I had posted an article about the Nifty on www.technicalsvishaldangaich.blogspot.com. Attached with that was the chart of the Nifty which clearly indicates that there was no hope for the Nifty to close above 5600 levels and the Nifty will continue its downtrend. The Article states “NIFTY: Will the Nifty extend its lossing streak, to complete the Head & Shoulder Pattern. Yes I think so!!!!

Head and shoulder pattern is in the formation of the Nifty Daily price chart. That indicates that the Nifty may tank below 5300 levels to make a low of 5177 or lower than that also. But Historically we have seen that Nifty finds good support and resistance levels at 5200 levels, so decesive break out below that only can decide the trend below that.

If we check Nifty levels through Fibonacci Theory from the High of 6338.50 (5^th Nov 2010) to 5177.70 (11^th Feb 2011). Nifty bounced back to find stiff resistance at 61.8% retracement levels and since then its been falling. Nifty on its downward movement, took support at 23.6% retracement levels for sometime only. Now, after some rally, Nifty faced resistance at 38.2% & once again it is at the 23.6% retacement levels. Close below the same will take the Nifty to 5350. Close below 5350, we may see Nifty at 5200 levels very soon.

Upside movement in the Nifty is capped as off now. Break out of the H&S pattern seems to be difficult. There are more bad news than the Good news in the mkt. 0.25-0.75 bps rate hike is on the cards in the near future, as the inflation is very high. For upside movement Nifty should close above 5600-5620 levels. “ See chart NO. 1.

On Wednesday Nifty closed below its 23.6% retracement levels, its 5DMA and 20DMA also triggering panic selling in the markets. Selling was seen in the frontline stocks where RIL Ind closed down at its 52 week low.

I still feel that the markets are in a Bear grip and the Nifty can come down to 5200-5177 levels. See Chart No. 2.Bank, Automobile and the Real estate stocks should further weaken as the rise in the Inflation is still a major concern in India that may lead to more rate hike in the near future.

Last Weeks Call

Sell Bajaj Auto below 1320 SL 1331. Did not trigger the sell price

Sell Hero Honda below 1713 SL 1724. Made a low of 1708. SL triggered.

Sell JSW Steel below 898 SL 902. Made a low of 861.

Buy Punj Lloyd above 66.20. Made a high of 72

This weeks call

Sell Acc below 959 SL 963.

Sell Andhra bank below 132.80 SL 133.80.

Buy Bharti Airtel close above 385 SL 380.

Sell Cipla below 328 SL 331.

Buy Hind Petro above 390.