Stock Market News and Morning Tips For 12 March 2015

Market News: Gold futures closed lower in the domestic market on Wednesday in the midst of continuing fears of an interest-rate hike by the US Federal Reserve. Further, a stronger dollar reduced the appeal of the bullion as an alternative asset. Stronger dollar makes the precious metal expensive for those holding other currencies, thus reducing demand. Gold may extend a decline today as caution persists ahead of key data this week including retail sales, consumer sentiment, industrial production and jobless claims which may signal further momentum in the world’s biggest economy, likely forcing the Fed to bring forward its timeline for an interest rate lift-off. At the MCX, Gold futures for April 2015 contract closed at Rs 25,685 per 10 gram, down by 0.90 per cent after opening at Rs 25,950, against the previous closing price of Rs 25,919. It touched the intra-day low of Rs 25,653 till the closing.

Morning Calls

OPTION: IDEA 165 CALL HIT 1ST TGT 6.25 CMP 6.30 BOOK PART PROFIT 

FUTURE: BUY IRB INFRA ABOVE 244.75 TGTS 246.25/248.75/252.25 SL 242.75 

CASH: BUY IRB INFRA ABOVE 243 (CMP-242.90) TGTS 244/247/252 SL 241 

ULTRA CASH: BUY NAUKRI ABOVE 852 (CMP-850.15) TGTS 860/870 SL 842 

ULTRA OPTION: BUY UCO BANK 70 CALL ABOVE 2.15 (CMP-2.10) TGTS 2.65/3.65 SL 1.65 

EQUITY HNI: BUY CARERATING ABOVE 1564 (CMP-1561.55) TGTS 1579/1599 SL 1549 

CASH: BUY INDUSINDBANK ABOVE 902.50 (CMP-901.40) TGTS 909.50/916.50/926.50 SL 893.50 

ULTRA CASH: BUY GODREJCP (GODREJ CONSUMER PRODUCTS LIMITED) ABOVE 1150 (CMP-1148.40) TGTS 1160/1180 SL 1140 

OPTION: BUY ADANIPORTS 310 CALL ABOVE 12 (CMP-11.90) TGTS 13/14.50/17 SL 10.50 

FUTURE: SELL LUPIN BELOW 1870 TGTS 1860/1846 SL 1880 

EQUITY HNI: BUY THERMAX ABOVE 1290 (CMP-1288.95) TGTS 1302/1315 SL 1278 

FUTURE: BUY AXIS BANK ABOVE 595 TGTS 598/603/610 SL 591

Chana prices closed higher 0.41 per cent on Wednesday at the National Commodity & Derivatives Exchange Limited (NCDEX) as the traders enlarged their holdings in the commodity on account of the good demand in the market. At the NCDEX, chana futures for April 2015 contract closed at Rs. 3,668 per quintal, up by 0.41 per cent, after opening at Rs. 3,655 against the previous closing price of Rs. 3,653. It touched the intra-day high of Rs. 3,693.

Moreover, the restricted arrivals of the commodity in the physical market due to lower estimated output also influenced the chana prices.

India is the largest producer of chickpea followed by Pakistan, Turkey and Iran. India produces around 6 to 8 million tonnes and contributes around 70 per cent of the total world production.

Mustard Seed prices closed lower by 0.15 per cent on Wednesday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a result of the profit booking by the traders on account of the weak crushing and export demand of mustard meal. At the NCDEX, Mustard Seed futures for April 2015 contract closed at Rs. 3,373 per quintal, down by 0.15 per cent, after opening at Rs. 3,380 against the previous closing price of Rs. 3,378. It touched the intra-day low of Rs. 3,364

Sentiment weakened further due to the sluggish export demand as a result of the weak demand for the commodity. EU-27 accounts to about 34 per cent of worlds RM seed production, others major producers are China (23 per cent), Canada (19 per cent), India (14 per cent), Australia (3 per cent), Ukraine (2 per cent). India produces 5.5 million MT to7 million MT annually.

Jeera prices closed lower by 2.53 per cent on Wednesday at the National Commodity & Derivatives Exchange Limited (NCDEX) on account of a surge in the supply from the producing regions in the midst of a decline in the export demand. At the NCDEX, jeera futures for March 2015 contract closed at Rs. 14,260 per quintal, down by 2.53 per cent, after opening at Rs. 14,625 against the previous closing price of Rs. 14,630. It touched the intra-day low of Rs. 14,095. Global output of Jeera is around 2.2 lakh MT per year, of which India produces about 1.5 lakh MT per year.

India exports Jeera mainly to the US, UK, UAE, Japan, Brazil, Bangladesh, Singapore and many other countries. Other Major exporters are Syria and Turkey.

Barley prices closed higher by 0.34 per cent on Wednesday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a result of strong demand from beer and cattle-feed making industries against restricted supply in physical markets. At the NCDEX, barley futures for April 2015 contract closed at Rs. 1,175 per quintal, up by 0.34 per cent, after opening at Rs. 1,173 against the previous closing price of Rs. 1,171. It touched the intra-day high of Rs. 1,180.

The consumption demand for Barley in India mainly comes for malt, poultry and animal feed. Barley malt is majorly used for the production of alcoholic beverages in the country.

Maize prices ended lower by 0.31 per cent on Wednesday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a result of heavy selling activity by the traders on account of higher global supplies and weak offtakes from the local buyers. At the NCDEX, maize futures for March 2015 contract closed at Rs. 1,281 per quintal, down by 0.31 per cent, after opening at Rs. 1,277 against the previous closing price of Rs. 1,285. It touched the intra-day low of Rs. 1,277.

Sentiment weakened further as a result of a decline in the demand for the commodity from bio-fuel making industries tracking the weak global markets.

USA, China and Brazil are the top three maize producing countries in the world while the prominent exporters of maize are USA, Argentina and Brazil. Chief importers are Japan, EU, Malaysia, Taiwan, Indonesia etc.

Copper prices ended lower in the domestic market on Wednesday after Industrial production in China fell more-than-expected last month signaling improving industrial activity in the region which raised the demand outlook for the metal. In a report, National Bureau of Statistics of China said that Chinese Industrial Production fell to 6.8 per cent, from 7.9 per cent in the preceding month. Sentiment weakened further due to the surge in the copper stockpiles at the London Metal Exchange (LME) on account of the weak demand for the commodity. LME copper stocks rose by 1975 metric tonnes to 327425 metric tonnes as on March 11, 2015. However, losses were curbed after data showed that China's factory output grew less than expected in the first two months of the year, adding to pressure on policymakers to introduce broad-based stimulus measures which raised the demand outlook for the metal. Copper prices may decline as investors now look ahead to upcoming US data which may determine the health of the world’s largest economy. At the MCX, Copper futures for April 2015 contract closed at Rs 365.05 per 1 kg, down by 0.72 per cent after opening at Rs 369.30 against the previous closing price of Rs 367.70. It touched the intra-day low of Rs 364.40 till the closing.

Crude oil closed lower in the domestic market on Wednesday after US crude oil inventories rose more-than-expected last month indicating that the demand for the commodity in US is weak. In a report, Energy Information Administration said that US Crude Oil Inventories rose to a seasonally adjusted annual rate of 4.512M, from 10.303M in the preceding month. However, losses were limited with investors focused on demand prospects to ease a persistent glut in global supplies and expectations that OPEC will keep global supply levels constant through its meeting in June. At the same time, major importers such as China and India are being eyed for demand as they take steps to cut interest rates. Oil may decline today as EIA data shows a record build-up in inventories. At the MCX, Crude oil futures, for the March 2015 contract, closed at Rs 3,000 per barrel, down by 1.99 per cent, after opening at Rs 3,069, against the previous close price of Rs 3,061. It touched an intraday low of Rs 2,990 till the closing.