NANO FOR RENT

Car rental firm Carzonrent and Tata Motors have inked a pact to launch an initiative in the Delhi/NCR region, under which customers would be able to hire a Tata Nano car for self drive at just Rs. 399 per day.
As part of the ‘Myles City Drive’ initiative, Tata Motors would supply 200 Tata Nano Twist cars to Carzonrent fleet for self-drive service in the Delhi/NCR region.
Under the initiative, Delhi-based Carzonrent would also offer the Nano cars to customers on a hourly basis at Rs. 99 and also for a whole month at a rent of Rs. 6,999.
Customers would also be able to book the car online as well as rent directly from the company’s 43 operational centres across the Delhi/NCR region.
Vij said the Myles City-Drive with Nano Twist is aimed at empowering customers and to enjoy everyday life a little more.
Carzonrent, which started Myles (self drive) initiative last year, currently has a fleet of around 600 vehicles under the vertical.
The company currently offers various cars ranging from Mahindra e20 to Mercedes-Benz under the self drive initiative across 16 cities in the country.

EXTERNAL DEBT $346.6 bn IN Q1

The country's international investment position (IIP) has deteriorated during the June quarter as net claims of non-residents rose USD 12.6 billion to USD 346.6 billion following a sharper rise in the value of foreign-owned assets in the country vis-a-vis rise in the value of residents' financial assets abroad. "Net claims of non-residents on the country, as reflected by the net IIP, rose USD 12.6 billion to USD 346.6 billion at the end of the June quarter from the previous quarter," the Reserve Bank has said.
This change in the net position shows a USD 22.9 billion increase in the value of foreign-owned assets in the country vis-à-vis a USD 10.4 billion increase in the value of residents' financial assets abroad, the RBI said.
However, the ratio of the country's international financial assets to international financial liabilities improved to 58.7 per cent in the June quarter from 59.1 per cent in the March quarter.
On an annual basis, the numbers deteriorated much faster as net IIP in June 2013 quarter stood at USD 313.4 billion, an increase of USD33.2 billion. In the September quarter of FY14, net IIP had stood at a USD 302.7 billion while the same was USD 318.8 billion in the December 2013 quarter. Similarly, residents' financial assets abroad, too, rose USD 10.4 billion in Q1 to USD 492.8 billion from USD 482.4 billion in Q4 of FY14. On an annual basis, assets rose by USD 58.3 billion from USD 434.5 billion. This stood at USD 436.7 billion in Q2 of FY14 and at USD 458.9 billion in Q3 of FY14. As per the RBI data, deterioration in net IIP was due to a sharper spike in the value of foreign-owned assets in the country vis-a-vis the increase in the value of residents' financial assets abroad. The net IIP measured as financial assets of residents are claims on non-residents and gold/bullion held as reserve assets less financial liabilities of the residents to non-residents. The IIP shows the value and the composition of the financial assets of residents that are claims on non-residents, and gold/bullion held as reserve assets; and the liabilities of residents to non-residents. On the composition of external financial assets and liabilities, RBI said the reserve assets continued to have the dominant share of 64.2 per cent in the overseas financial assets, followed by direct investment abroad at 26.2 per cent. The share of direct investment stood at 29.8 per cent, portfolio investment at 24.3 per cent, loans at 21.5 per cent, and currency and deposits at 12.7 per cent. The share of non-debt liabilities rose marginally to 46 percent in Q1 from 45.5 per cent in the previous quarter.

SAMVAT FORECAST, 2071 :: 2014- 15

Samvat  2070 has ended the year at a high level of  7996 (up from 6317 last year) recording  a rise of more than 25%. Market had come out of the long term consolidation and appears to be heading for a record bull run. This is mainly because of the change of guard at the centre and a Government of Single party with absolute majority, (first of its kind after 1989). In view of the stable Government, lot of reform measures can be expected which would lead to country’s economic development over long term.

Now, let us analyse what is in store astrologically, for the next Year.

Let us see how the markets can be in the Next Samvat year 2071. On the
basis of Planetary position at the time of Diwali (New year),  and the
transiting planets  during the year the following indications are available
astrologically.

Samvat Year rises in Simha  Lagna with luminaries (Sun and Moon) placed in 3^rd and Jupiter in Cancer in the 12^th , Saturn in 3^rd in Libra and Rahu and Ketu placed in Virgo and Pisces. Mars is placed in Sagittarius in 5^th.  However,  Mercury, the lord for Trade and Commerce is exalted and in retrograde position in Virgo.  

 

Infra and Realty push can be expected from last week of December.  November 2014, January, 2015, May 2015 are expected to be quite volatile wherein traders need to be highly cautious. Financial sector reforms / measures might not go through smoothly for some more time. Global cues might not be favourable in general and our market  has to go up based on domestic cues mainly.

Important dates / period to watch in this Year  based on time cycles are 21.12.2013, 10.2.15, 124.15, 5.6.15, 28.6.15, 30.8.15, 19.9.15, 21.10.15;

Sensitive dates based on transit of planets :: 11.8.15, 9.12.14, 8.4.15; 23.12.14, 15.6.15, 18.9.15;

Sensitive dates based on important aspects between slow moving  planets :: 10.11.14; 13.11.14; 15.1.15; 1.2.15; 11.3.15; 15.5.15, 15.7.15, 3.8.15, 26.9.15, 25.7.15,

Technically, Nifty is expected to face  resistance around 8435, 8705, 9150, 9850 and find support around  7555, 7285, 6845, 6130   during the year.

While  global cues, FII inflows and Government  policies including Monetary policy of the central bank , Business environment, Currency fluctuation  are  expected to play pivotal role in shaping the economy and in turn stock market,  forthcoming year will be mainly influenced by Governmental Reform Push , which can be expected to be generally favourable. Fundamentally  too Nifty EPS has gone up from 345 last year to 385. If next year’s rate of growth improves, PE multiple would go up Based on the expected growth, Nifty can be expected to be between 8600 and 9400 based on conservative and optimistic estimates by next Diwali. In view of the proactive Government and the reform push, buying is recommended on every reasonable decline. 

 

SENSEX BIDS GRAND GOOD BYE TO SAMVAT 2070

Samvat year 2070 ended with a bang as Sensex today soared 212 points to finish at one-month high and Nifty jumped 68 points to close just shy of 8,000 mark on optimism festive sales will boost earnings and hopes that Modi government will unleash more economic reforms. The Hindu Samvat year 2070 saw Sensex flaring up by 5,547.87 points or 26.12 per cent, its biggest gain in last five Samvat years. In Samvat year 2065, it had gained 8,813.26 points or 103.57 per cent. Investors in BSE listed stocks gained nearly Rs 25 lakh crore in Samvat year 2070. In a firm but range bound trade today, buying was seen across the board as all 12 BSE sectoral indices closed with gains between 0.06 per cent and 2.97 per cent. Auto, capital goods and pharma counters took the lead in the surge. Second-line stocks also attracted good buying, indicating renewed support from retail investors. "The optimism on the street was mainly due to sustained recovery in the global markets and positive momentum from the reform measures announced by the government recently," said Jayant Manglik, President-retail distribution, Religare Securities. The benchmark S&P BSE Sensex resumed strong with a wide upside gap of over 200 points in line with firm Asian cues. It later moved in a narrow range of over 100 points before ending at one-month high of 26,787.23, logging a rise of 211.58 points or 0.80 per cent. Previously, it had closed at 27,206.74 on September 22, 2014. In straight four sessions, Sensex has gained 787.89 points or 3.03 per cent. The broad-based 50-issue CNX Nifty of the NSE also rallied by 68.15 points, or 0.86 per cent, to end at almost one-month high of 7,995.90. It touched an intra-day high of 8,005.00. "We understand that the consumer buying has been good in the run-up to the festive season leading to buying of select stocks. Capital goods stocks also performed well as they responded to the government actions related to coal block auctions," said Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities. Meanwhile, the provisional data released by the stock exchanges showed Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 32.40 crore yesterday.

OIL @ $ 82.50

Oil prices slipped today after enjoying a recent upturn in line with a global equities rebound, while analysts said investors will now be keeping an eye on the US Federal Reserve's next policy meeting. However, oversupply and lingering concerns about demand in key markets are capping gains and keeping prices at multi-year lows. US benchmark West Texas Intermediate for November delivery eased 31 cents to close at USD 82.50 a barrel. Brent North Sea crude for December fell four cents to USD 86.18. WTI is stuck around levels not seen since mid-2012, while Brent is at a four-year low. Crude sank in line with worldwide markets last week on fears about the strength of the global economy as China, Europe and Japan struggle to kickstart growth. However, bargain-hunting and indications of loose central bank monetary policies for some time have supported a rebound this week, with US stocks surging for three straight sessions. Adding to downward pressure on oil prices is a supply glut from increased output of shale in the United States, and price-cutting by major producers such as Saudi Arabia. Tetsu Emori, fund manager at Astmax Asset Management in Tokyo, told AFP: "The market seems to have factored in the supply-demand gap and is looking for oil's bottom. "It's difficult for traders to move now ahead of the (Fed policy meeting) next week and amid speculation over the European Central Bank, including reports that (it) could expand its easing programme." Reports yesterday said the ECB could expand its bond-buying scheme to include corporate notes as well as covered bonds and asset-backed securities. The Fed will hold its next policy meeting next week, with investors closely watching to see if it will bring an end to its own bond-buying programme and give any hints about its plans for interest rates.

NIFTY OUTLOOK FOR 21 & REVIEW

MIDSESSION BETTER...CLOSING SUBDUED

Nifty                               7879  +99

Nifty opened with an upside gap following reform measures in Energy sector viz., Diesel regulation and Gas Priicng and traded in a narrow range to close with a gain of more than 1%. IT index declined while other inices closed in the green. Nifty would get into short term bullishness if it closes above 7910. Nifty spot is expected to encounter resistance at 7920,, 7955 and find support at 7840, 7800 for Tuesday. While Global cues  and  Funds flow  are expected to broadly guide the market movement, based on the present market position, market can be expected to be generally better in the midsession and remain subdued towards close.
PRE FESTIVE RALLY

Diwali seems to have come early to Dalal Street as benchmark Sensex today zoomed 321 points, its best single-day gain in over a week, on back of much-awaited fuel reforms and hopes of Modi government going ahead with further economic initiatives after BJP's wins in state polls. Buying in auto, capital goods, banking, refinery and power sector shares lifted markets. Overall, 1,600 counters ended in the green. From 12 BSE sectoral indices, as many as 10 barometers ended up while IT and Teck closed in the red. Positive global cues also bolstered sentiments here. Rupee was last trading at 61.30 levels against US dollar. The 30-share Sensex resumed strong at 26,434.16 on firm Asian cues after positive trends on Wall Street last Friday. It hovered in a positive terrain throughout the day in a range of 26,517.90 and 26,368.94, before ending at 26,429.85 -- a sharp gain of 321.32 points or 1.23 per cent. Last Friday, it has risen by 109.19 points or 0.42 per cent. Today's rise was its best since 390.5-point jump on October 9. The broad-based 50-share CNX Nifty also rose by 99.70 points, or 1.28 per cent, to end at 7,879.40. "Participants were optimistic from the early trade on hopes for additional reforms after Narendra Modi's party won election in one state and emerged as single largest party in the other. Additionally, measures taken by the government in the past two days, like deregulating diesel prices and raising the cost of natural gas also aided the sentiment," said Jayant Manglik, President-retail distribution, Religare Securities. Stocks of state-owned oil marketing companies BPCL, HPCL and Indian Oil hogged the limelight and surged up to 7.38 per cent as diesel deregulation will sharply cut subsidy burden of these companies. Sensex constituents ONGC and GAIL ended in positive terrain with gains up to 5.44 per cent. Tata Motors, Mahindra and Mahindra and Maruti Suzuki were among big gainers in auto space on expectations of higher sales on account of ongoing festive season and hopes diesel deregulation will fuel demand for vehicles. Japanese stocks led a rally in Asian stocks today after after solid US data and earnings reassured investors worried about the health of the world economy. Key benchmark indices in Japan, China, Taiwan, South Korea Hong Kong and Singapore were up 0.42 to 3.98 per cent. European stocks, however, dropped in their afternoon trade on tepid financial results of some bluechips. Key indices in France, Germany and the UK were off by 0.53 per cent to 0.85 per cent.

WEEKLY ASTRO TECHNICAL GUIDE FOR NIFTY

CLOSE TO STRONG SUPPORT….!!!

Planetary Position ::  During the current week Moon would be transiting  from Pubba  in Leo to Chitta  in Libra.

Sun transits in Chitta   in Libra.

Mercury , in Retrograde motion, transits  in Chitta   in   Virgo  and would be  in retro motion till 25^th October.

Venus transits in  Chitta in Libra.

Mars  transits in   Moola constellation in Sagittarius .  

Saturn transits in Visakha constellation in Libra and in  Gemini Navamsa .  

Jupiter transits in Aslesha constellation in Cancer and in  Aquarius navamsa ..

Venus Sun conjunction (generally referred to as Sukra Moudhyam) depresses values and is generally bearish and Mercury retro motion gives scope for dual movement. Statistics / information during Mercury retro period is generally misleading and unreliable. Grand Square involving Uranus and Sun / Venus is complete and should result in lower volatility and put an end to sudden and swift fluctuations.

Nifty Outlook for Next Week :: (20.10.2014 to 23.10.2014) …  

NIFTY :: 7780 (-80) (Bullishness only above 7925….)

Nifty’as Bearishness continued for the Fourth week and is close to strong support level of 7675. Though Nifty closed below 7800 mark, it is close to 100days’ EMA of 7675 and could offer strong support. With WPI inflation under control, RBI could cut the Bank rates and kick start the downward interest cycle. With falling crude oil prices, diesel deregulation is also on cards With improving macro fundamentals, market can be expected to do better over Medium / long term and Nifty is presently in consolidation mode and market is expecting big bang reforms after the formation of Government in Maharasthtra. Budget exercise also appears to have begun with certain changes in finance ministry officials. Favourable macro economic factors such as falling crude oil prices, lower inflation would positively affect corporate earnings with a lag effect. As market had run up ahead of fundamentals, it is presently in consolidation mode. Much awaited correction in IT index has commenced as TCS Q2 results did not meet market expectation. Further, PSU Bank stocks were beaten down disproportionately due to NPA concerns and are in pullback mode. SEBI’s ban on DLF and promoters from accessing capital market had affected Realty sector stocks. Next  Budget should really be path breaking if the present Government  is fully committed to growth and reforms. Coal block allocation cancellation has affected mining  and related activity and could affect GDP too consequentially. Similarly Gas pricing matter too is affecting economic activity . These Two issues need to be sorted out spur economic growth.

Nifty closed the week  below 50 DMA and appears to have taken support around 100 DMA and might consolidate around the present level. Global cues appear to be distinctly weak and could drive down our market. However, Nifty would get out of the bear grip only if it closes above 7925.

20DMA, 50DMA, 100DMA and 200 DMA are placed at about 7940, 7915, 7740 and 7100 respectively and would

act as supports / resistances. Nifty needs to close decisively above 50 DMA to resume short term uptrend.

Based on the present Government’s agenda, Infra  and Power sectors could come out of their problems soon . Stocks of promoters with proven record may be preferred in these sectors.

Investors need to accumulate quality stocks while traders need to be ever vigilant

Nifty continues to be above 200 DMA and 50 DMA too is above 200 DMA (Golden Cross) suggesting that the long term bullish trend is intact.   Nifty is quoting at a PE of about 20.15, which is about 15% above the long term PE multiple.  Hence, further upside (  8500+ is possible  before next Budget)  

in view of the  stable and performing Government  at the centre as earnings would go up becauseof favourable atmosphere .  IF Nifty stays around the present level for the next Six months, trailing PE could come down to less than 19.50 also making a case for another upmove.

Market is usually ahead of fundamentals and fundamentals need to catch up with the present valuations which could take some time .

Strong long term support would be around 7100

level and Medium term support is 7700.

Technical Levels ::

For the coming week, Nifty spot is expected to face

resistance at 7870,  7955, 8050 and find support at 7690, 7605, 7520.

Minor resistances may be found at 7840, 7890, 7920, 7970  and minor supports at 7715, 7665, 7640 and 7590.

For short term Nifty is bearish  with strong support at 7670 and would become bullish on a close above 7925.  

Advice for Traders ::

With weak global cues, Nifty fell for the Fourth week and is close to 100 DMA. It could consolidate between 50DMA and 100 DMA . In view of the correction for Four weeks, and Diwali sentiment , downside appears limited (subject to global cues). However, short term downtrend would get arrested only on a close above 7925. With a long weekend, it could attract profit booking at higher levels too.  

SMART PHONE IMPORTANT PART OF LIFE FOR INDIANS

Tech-savvy Indians have emerged as the most hooked on to gadgets globally with as many as 95 per cent finding their smartphones "critically important" while 75 per cent use their smartphone or tablet to book a hotel, says a survey by leading online travel firm Expedia. "The findings clearly suggest an increasing dependency on the mobile platform. 95 per cent Indian respondents feel that their smartphone is very or of critical importance to their daily life," Vikram Malhi, MD, Asia, Expedia said. He further said that Indians lead in app booking and data roaming plans globally.
"In fact, 75 per cent of Indians who have used their smartphone or tablet to book a hotel have booked a hotel stay using a mobile app (the highest of any country), he said.
The survey highlights the maturation of Indian traveller who is fast moving up the ladder of travel apps and is no longer hooked with conventional modes of bookings, the findigs said.
This survey was conducted from August 25 to September 17, this year among 8,856 employed adults aged 18 years of age and older across 25 countries.
The research further said that India has the second highest number of Google Glass owners at 6 per cent after South Korea at eight per cent.
Google Glass is a type of wearable technology, developed by Google with the mission of producing a mass-market ubiquitous computer.
India, it further said, has the highest number of Smartwatch owners globally, with 18 per cent of them owning/using the device. The survey also says that 85 per cent of Indians currently have and use a laptop--fourth highest in the world after Denmark (89 per cent), Austria (86 per cent ) and Norway (86 per cent), it said. Indians rank second highest in carrying laptops with them on leisure trips (47 per cent ) after UAE (48 per cent), the survey says.
"India ranked fifth in number of people saying they always bring their smartphone with them on leisure trips, with 88 per cent of Indians who have at least one mobile device saying they always travel with their smartphone on leisure trips, and 38 per cent say they always travel with a tablet," it says.

DHANTERAS JOSH IN MARKETS

Top stock exchanges NSE and BSE have decided to extend the trading session for Gold Exchange Traded Funds on Tuesday till 7 PM on account of Dhanteras - a day considered auspicious for buying gold.
Besides, both the bourses have decided to waive off the transactions charges for all trades in gold ETF securities on that day.
In separate notices, NSE and BSE said that they would conduct "an extended live trading session on Tuesday, October 21, 2014" in Gold ETF securities "on the auspicious occasion of Dhanteras".
After the regular market hours from 9:00 AM to 3:40 PM, trading in gold ETFs will resume at 4:30 PM on October 21 and continue till 7 PM, the exchanges said.
The Gold ETFs track the metal's prices and each unit of these securities is generally equivalent to one gram of gold.
It is considered auspicious to buy valuables like gold on occasions like Dhanteras, Diwali and Akshay Tritiya in India.
Returns from Gold ETFs are linked to the domestic price of physical gold but spare the investors from the trouble of buying and keeping the yellow metal in physical form.
Gold ETF of -- Axis Mutual Fund, Birla Sun Life Mutual Fund, Goldman Sachs Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, IDBI Mutual Fund and Kotak Mutual Fund -- are some of the securities that would be available for trading on Tuesday.
BSE and NSE have informed their members that all unmatched pending orders of Gold ETF securities at 3:30 PM would be cancelled and not carried forward to the extended trading session.
"Members would remain logged in to the trading system after the end of post closing session at 4:00 pm and would no need to log in again for the extended trading session at 4:30 pm," BSE said in its notice.
"All trades done on Tuesday, October 21, 2014 during the normal as well as extended trading sessions would be merged and settled on October 27, 2014 as per existing settlement schedule," it added.

HEALTH INSURANCE INDUSTRY TO TOUCH Rs.65,000 CRORES

Insurance companies, both life and non-life, are bullish on their plans of making it big on the health insurance segment, which is one of the fastest growing businesses for them, and have set a target of more than trebling the business to Rs 65,000 crore by FY'20. Health insurance is the fastest growing insurance product for insurers. Last year, the industry did around Rs 18,000 crore and hopes to do Rs 20,000 crore business this fiscal, which should touch Rs 65,000 crore by FY20, General Insurance (PSU) Association chairman G Srinivasan told PTI. State-run New India Assurance, the largest player in the health cover space, has already filed for a new product under health insurance segment with the sectoral regulator Irda.
"We have already filed for a new product under health insurance segment with the Irda and we are waiting for the approval for launch. It's a top-up policy which provides cover beyond a level upto which the cover is being already being provided," Srinivasan, who is also the chairman and managing director of New India Assurance, said. He was speaking on the sidelines of an event organised by the National Insurance Academy in Mumbai. "The customers will be free to pay premium up to Rs 30 lakh a year under the proposed plan. One can have this top-up plan not only in case if one is our customer but those from outside can also buy this product," Srinivasan said. New India did a Rs 3,200-crore business in the health segment last year and this year it is eyeing Rs 3,600 crore. In the first half the company has already achieved Rs 1,800 crore of business, he added.

Private sector general insurer Cholamandalam MS plans to do business of over Rs 200 crore this fiscal in the category. "We are likely to see Rs 210 crore business from health segment, while our total premium may touch Rs 2,100 crore this fiscal," Cholamandalam MS General Insurance managing director SS Gopala Rathnam said, adding the company is looking at increasing the health insurance business to Rs 1,000 crore per annum over the next four years from now. For Tata AIG General Insurance, the focus is on group insurance. "Even though our focus continues to be on individual health insurance, we will go for group cover if we are able to get the right premium," Tata AIG General Insurance chief executive officer K K Mishra said.
Reliance General Insurance is more focused on retail health insurance. "One fourth of our business comes from health insurance segment. Our focus will continue to be on retail health insurance," Reliance General Insurance chief executive Rakesh Jain said. Even life insurers are also there in the space and there is a clear-cut demarcation now. Health insurance products having maturity period of up to three years are being sold by general insurers, while life insurers are selling longer term products, Srinivasan said.
The health insurance market has emerged as a significant component of non-life insurance sector and experiences a significant growth because of huge potential of the market coupled with new products efficiency which insurance players are bringing in," Insurance Brokers Association president Sohanlal Kadel said.