Saturday, October 31, 2015

Weekly Review - 02.11.2015

Dear All,

Elections in Bihar :-

Bihar election on lime light. A win on Bihar - looks more important for MODI - to pass important bills like GST. Even a Negative Exit Poll Results may trigger some sort of Selling - in a already nervous mounted market.

Results are not encouraging :-

Markets were likely disappointed by the results of a few banks / capital goods / other companies, which failed to meet expectations.
Among Q2 corporate earnings, SBI, Tata Steel, Cipla, BHEL, Tata Motors, ONGC, DLF, Indian Oil Corporation, Ashok Leyland, Bank of Baroda will announce the results in the coming week.

Automobile companies will be in focus as companies will start announcing monthly sales volume data for the month of October.

MAT on FPI's :-

FPI's are still waiting for the clarity on MAT. In the past ten days, about half a dozen FPIs have received letters from income-tax assessing officers asking them to clarify on whether they have a PE in India.

The recent notices have been received by FPIs who were among those that had approached the Dispute Resolution Panel, an alternative resolution mechanism, on the MAT issue. The offshore portfolio investors who were under the impression that the Shah panel report would end the MAT controversy, are now trying to figure out whether these notices from the assessing officers could prolong the dispute.

Since the CBDT press release said that FPIs would be exempt from MAT only if they don't have PE in India, the DRP would want to examine whether the FPIs have a PE in India. It would be interesting to see how tax authorities analyse the existence of PE in India since FPIs generally operate from abroad and have agreements with independent third parties in India such as brokers and custodians.

Global Data's Ahead :-

The Nikkei India Manufacturing Purchasing Managers' Index (PMI) data for the month of October 2015 is due on Monday.

On the global front, China's Caixin Manufacturing PMI, US Nonfarm Payrolls report, US Unemployment Rate report will be unveiled next week.

Lets go to Technical's..

>>> Nifty Weekly Chart <<<

>>> Click the chart to see on full screen <<<

Almost a 290 Points fall in a week time. Price closed below 50,25 & 15 WMA, may test 100 WMA on the downside or even the channel bottom.

>>> Nifty Daily Chart <<<

>>> Click the chart to see on full screen <<<

We created short on nifty from 8320. 50 DMA may support Price, if fails, price may continue to fall.

>>> Nifty Hourly Chart <<<

>>> Click the chart to see on full screen <<<

8055 tested. As I have warned many times on whatsapp, if breaks below next week, expect fall to continue.

>>> Bank Nifty Daily <<<

>>> Click the chart to see on full screen <<<

Resisted @ 18030. Friday price managed to hold 50 DMA and Support 17175. If managed to hold, expect some recovery, Else fall to continue.

>>> Bank Nifty Hourly <<<

>>> Click the chart to see on full screen <<<

Getting support from 17175 or channel, if holds expect recovery to test 50 hma before next fall.

>>> LICHSGFIN - Follow Up <<<

>>> Click the chart to see on full screen <<<

LICHSGFIN - is a follow up again. We rolled over - our Short position. As per above chart, if the support line breaks, fall to continue.

>>> YESBANK - Profit Booked <<<

>>> Click the chart to see on full screen <<<

Booked Profit Rs.13500/-

>>> M&M - Profit Booked <<<

>>> Click the chart to see on full screen <<<

Profit Booked Rs.12500/-

>>> SIEMENS - Follow Up <<<

>>> Click the chart to see on full screen <<<

>>> Performance for the month end of Oct, 2015 <<<

>>> Click the image to see on full screen <<<

Many calls are hidden, since its rolled over to next month. Since next month lot size are changing, we have shown loss in oct month as per existing lot size. New or monthly clients subscription period has been extended as per. For details of calls and our service, email us to