Thailand’s Inflation Holds at 3%, Supporting Case for Higher Interest Rate
Thai inflation held at 3 percent last month after accelerating in December, supporting the central bank’s case to raise borrowing costs again.

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S. Korea raises key rate, moves against inflation
South Korea’s central bank Thursday unexpectedly raised its key interest rate to curb inflation, joining others in Asia and beyond, while the government announced its own steps to control rising prices.

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John Hancock Advisers, LLC Provides Statement on Additional Auction Rate Preferred Lawsuit and Related Matters
John Hancock Advisers, LLC announced today that on August 30, 2010, a shareholder derivative complaint was filed in the Superior Court of The Commonwealth of Massachusetts, Suffolk County, with respect to John Hancock Tax-Advantaged Dividend Income Fund , a leveraged John Hancock closed-end fund. Â The complaint is substantially similar to the one that was filed by the same law firm with respect …

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   Federal Reserve slashed the interest rates to target 0.25% to 0%..It is to fight deflation or  recession. It was the trump card used to revive economy.Free money supply can create demand and increase the consumption.It can help sinking economy.But can it have kick start  effect to the problem and place economy on the fast track.The answer is no.It can do no miracles in short run.Free money supply can boost the demand not the confidence.Investors will not invest money somewhere because they get it at free interest rate.Investors look for returns.One will invest only if he is confident of making money on investment not just because it’s free money.Borrower has to pay the principle amout back if not interest.Nobody will take a risk of investing particularly if there is going to be a depreciation of invested asset.People will look for surety and would not like to take the unnecessary risk unless and until confidence revives.Fed and U.S.Government have to be prepared to take more actions on SOS basis and be ready with alternative plans as interest rate trump card has been already used.Restoring investors confidence is the need of hour.

Traders were cautious and tried to book profits.they expect something more has to be done to kick start the economy.Depriciating dollar will only help commodities prices and emerging markets.Wait and watch was the policy before jumping on to the bandwagon.Redumption pressure in January are also feared by them.Emerging market Government are also expected to cut the interest rates further to catch up with Fed

BSE Sensex (8891.61) and Nifty (2763.65) closed 0.5% and 1.0% up respectively last week. Nifty put call ratio was 1.40. Nifty March 2700 put option added open interest Support for Sensex is at 8670 and for Nifty 2690.Resistance for Sensex is at 9200 and Nifty is at 2860. Inflation was at 3.36 v/S 3.92 last week. Crude oil was at 44$.Reduction in excise duty and service tax by two percentage declared by the Government helped the ailing sentiment and market survived despite the downgrade of India’s outlook by Standard & Poor’s (S&P). GDP Q3 Nos at 5.3% were much below expectations and for the first time in last 16 quarters has come below 7%.Reliance Industries board will meets on 2nd March 2009 to mull the merger with RPL. Merger ratio within 17 to 24 shares is being speculated by the market participants. ACC and Powergrid added open interest. MRPL and BhushanSteel shaded open interest. Huge position was build up at IFCI March call option strike price 20 and Powergrid March call option strike price 100. Good build up was also seen at Reliance Industries March put option strike price 1260 and ICICI Bank March put option strike price 320.

Tactics for Future Option players.

1)NagarjunaFertilizer(15.40) Lot Size-21000 Shares
Buy one call option of March strike price 15@1.20 Rs.
Sell one call option of March strike price 20@0.15 Rs.
Premium .Paid=1.20*21000=25200.00 Rs.
Premium Received=0.15*21000=3150.00 Rs.
Net Premium Paid=25200-3150=22050.00Rs.
Maximum Profit=20-15=5*21000=105000.00-22050.00=82950.00 Rs.
Maximum Loss=22050.00 Rs.
Break-even=16.05 Rs.

2)TataSteel(171.50) March future-Lot Size 1528 shares.
Buy one lot March future @171.50
Sell one call option of March strike price 190@4.90 Rs.
Premium Received=4.90*1528=7487.20Rs.
Max Profit==190-171.50=18.5*1528=28268.00+7487.20=35755.20 Rs.
Max loss=Unlimited.

Trading Idea

1)HDFC Bank(889.50)Buy this stock in decline and trade.
2)Alok Textiles(16.10)Buy this stock in decline and trade

Trend of Major Stocks

STOCK TREND Days WeeklyTrend MonthlyTrend

BHEL.NS Bulllish 8 Rising Rising
ICICIBANK.NS Neutral 1 Falling Rising
INFOSYSTC.NS Bulllish 3 Falling Rising
ITC.NS Bearish 1 Rising Rising
MARUTI.NS Bulllish 3 Rising Rising
SBIN.NS Neutral 1 Falling Rising
TATASTEEL.NS Bulllish 2 Falling Rising
TCS.NS Bulllish 3 Falling Rising

Technical indicators of major Stocks

MFI=Money Flow Index
RSI=Relative Strength Index
ADX=Directional Momentum Index

STOCK CLOSE MFI-21 RSI-14 ADX-14

BHEL.NS 1403.85 53.62 52.08 12.85
ICICIBANK.NS 327.55 27.89 33.68 23.2
INFOSYSTC.NS 1231.25 52.09 50.1 20.79
ITC.NS 183.05 59.58 57.83 18.15
MARUTI.NS 677.3 67.63 67.23 25.13
SBIN.NS 1025.3 40.88 35.29 25.88
TATASTEEL.NS 172.8 64 45.25 19.31
TCS.NS 483.1 54.26 45.29 15.93

Website narendranainani.blogspot.com.

India Rate Increase Is Unlikely Before End of July, Nomura Says
June 16 (Bloomberg) — India’s central bank may refrain from raising its benchmark rate before a July 27 meeting as money-market rates have already climbed following license-fee payments by phone companies, according to Nomura Holdings Inc.

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National Bank Financial Group Increases its Prime Rate National Bank Financial Group (TSX: NA) increases its prime rate from 2.25% to 2.50%, effective June 2, 2010. read more Read more on SYS-CON Media

Canada Raises Policy Rate, First in G-7 After Global Recession June 1 (Bloomberg) — The Bank of Canada raised its key interest rate from a record low today, the first Group of Seven country to do so since last year’s global recession, and said further moves will be “weighed carefully” against future growth in Canada and elsewhere. Read more on Bloomberg

BSE Sensex (10099.91) and Nifty (3077.50) closed 4.2% and 5.3%  up last week.Nifty put-call ratio was 1.03. Support for Sensex is 9750 and for Nifty 2960.Resistance for Sensex is 10525 and Nifty is at 3220.Inflation was also under control at  6.84 v/s 8.00 last week.Crude oil was at 33$.CBOE Vix Volatility  Index was down to 45.Market recovered from low levels on interest  rate cut by Federal Reserve targetting 0.25% to 0%.Better than expected inflation nos. also boosted the sentiment.Despite bad news like Satyam-Maytas deal worth $1.6 billion  being called off due to pressure from all quarters  as it was viewed as only beneficial to the  promoters of group company,Possibility of inquiry against Reliance ADAG group companies like RNRL and REL for violation of FEMA law by Enforcement Director the  market was able to absorb it and move higher.Expectation of furthure interest rate cut by Reserve Bank Of India and due expiry of Future Option series on 24th December will make market volatile. . Small Buying of FII was visible..Nifty 3000  put option  added open interest.RNRL and SUZLON   added open interest.Reliance Industries and India Cement  lost open interest.

Strategy for Future Option players.

1)NTPC(182.20) Lot Size-1625 Shares

   Buy one call option of January month strike price 180@11.15 Rs.

   Sell  one call option of January month strike price 190@7.10 Rs.                                          a

   Premium Paid=11.15*1625=18118.75 Rs.

   Premium Received=7.10*1625=11537.50 Rs.

   Net Premium Paid=18118.75-11537.50=6581.25 Rs.

   Maximum Profit=190-180=10*1625=16250.00-6581.25=9668.75 Rs.

   Maximum Loss=6581.25 Rs.

   Break-even=184.05 Rs.

2)IDBI(70.00) January  month future-Lot Size 1200 shares.

    Buy one lot  January month @70.00

    Sell  one call option of  January month strike price 70@6.50 Rs.

    Premium Received=6.50*1200=7800.00  Rs.

    Max Profit==6.50*1200=7800..00 Rs.

    Max loss=Unlimited.

Trading Idea

1)TCS(513.55)Buy this stock in decline and trade.         

2)Allahabad Bank(50.05)Buy this stock in decline and trade.

Trend of Major Stocks

            STOCK                        TREND          NO.OF Days   Weekly          Monthly

                                                                                                  Trend             Trend

            ICICIBANK.NS         Bulllish  3          Rising                           Rising              

            INFOSYSTC.NS        Bulllish  4          Rising                           Falling             

            ITC.NS                        Bulllish  2          Rising                           Rising              

            MARUTI.NS               Bulllish  5          Rising                           Falling             

            SATYAMCOM.NS    Bearish 3          Falling                         Falling               

            SBIN.NS                     Bulllish  2            Rising                          Rising               

            TATASTEEL.NS         Neutral      1          Rising                          Rising               

            TCS.NS                      Bulllish       2  Rising                            Rising 

Technical indicators of major Stocks

MFI=Money Flow Index

RSI=Relative Strength Index

ADX=Directional Momentum Index

STOCK                          CLOSE       MFI-21 RSI-14 ADX-14         

ICICIBANK.NS         472.8        66.9            66.99   20.8           

INFOSYSTC.NS        1191.3      63.64          49.85   20.37

ITC.NS                       179.05     57.66           59.11   12.37

MARUTI.NS               549.4       69.02           55.22   27.84

SATYAMCOM.NS    162.7       16.3             28.18   37.28

SBIN.NS                     1287.45   55.37           58.16   17.19

TATASTEEL.NS         229.1      65.76            59.25   25.72

TCS.NS                      513.55     60.36            49.07   14.44

Website narendranainani.blogspot.com.

Bank of Korea Keeps Interest Rate at Record-Low 2% (Update2) May 12 (Bloomberg) — The Bank of Korea kept its benchmark interest rate unchanged for a 15th month as policy makers faced risks from the European debt crisis alongside signs that the domestic economic recovery is strengthening. Read more on Bloomberg