Trading IDeas

Buy TATA Communication above 394 for a tgt of 407 429 Strong support at 350

Buy Canara bank if it breaks 394 Tgt 397 410 430

Nifty Technical View

Nifty has closed below 5 EMA after phenomenal after the European opening and saw a good recovery.

Now as per my TA you we have closed below 5 EMA which is at 5012 and 71.6% retracement also as show in charts attached above.

We can see rally tommorow as asian markets should open higher but if 5012 above are not sustained than we can again down to a levels of 4700
4920 which is 20 SMA hold the key below that we will again enter in a downtrend.


Weekly Levels to be watched.

Weekly Pivot:4962

Weekly Resistance:5028 5116 5227

Weekly Support:4830 4719 4632

UAE: Dubai Government calls for debt restructuring by state companies

Got this report on Dubai Crises from JM Read this for Clarity on Dubai Crises.


The Dubai Government announced yesterday that it has asked investors to extend the maturity of upcoming debt amortisations of two of its state-owned companies, Dubai World and its real estate development arm Nakheel, until 30 May 2010. Subsequently, the Dubai government has authorised Dubai Financial Support Fund to “restructure Dubai World with immediate effect”.

Dubai World is a 100% state-owned holding company that owns Nakheel (100%), a real estate developer; DP World (77%), one of the world’s largest port operators and a listed company; Drydocks World (100%), a shipbuilding and maintenance company; and Limitless LLC (100%), a real estate developer which owns various assets in Europe, Africa, Asia and the Middle East. The government of Dubai also owns a number of other entities directly or through other structures.

The upcoming bond amortisations of Dubai World are in the attached table. We calculate that in 2010, Dubai World and its subsidiaries will be redeeming about $7.8bn in the reminder of 2009 and 2010 and another $6.8bn in 2011. The most pressing redemption is the $3.52bn sukuk bond of Nakheel, which will be due on December 14, 2009 – a bond which is owned widely by overseas and GCC investors. Altogether, Dubai’s total outstanding debt stock is believed to be around $80bn and S&P estimates that the total debt amortisations of the Emirate will approach $50bn over the next three years, of which $21.9bn is owed by quasi-sovereigns between now and end-2011.

Dubai World (incl. subsidiaries) debt maturity schedule
Name	Date	Amount (USD mn)
Nakheel	14-Dec-09	3520
Limitless	31-Mar-10	1200
Nakheel	13-May-10	980
Dubai World	19-Jun-10	2100
Nakheel	11-Jan-11	1200
Dubail World	19-Jun-11	1950
Dubail World	19-Jun-11	450
Palm District Cooling	20-Jul-11	500
Port, Free Zone World	29-Sep-11	150
Port, Free Zone World	29-Sep-11	853
Dubai Drydocks	11-Oct-11	1700
Total		14603
Source: Reuters

COMMENT: Technically, this does not constitute a sovereign default, since there are no sovereign guarantees on Dubai World and its subsidiaries; in fact, the government issued a decree earlier this year stating that it will not underwrite liabilities of Dubai World. But it was the government rather than the company that announced the standstill yesterday, and investors can be forgiven for regarding the finances of the emirate and of its wholly-owned subsidiaries as not clearly distinguishable. Dubai CDS has widened sharply to 570bps and the nominal value of Nakheel bonds collapsed to 70 from previous 110.

We have been arguing that Dubai’s financing problems will have to be resolved within the broader federative structure of UAE, leaning heavily on Abu Dhabi's vast resources. Despite the distressing developments of the past 24 hours, this still remains to be the case. Dubai launched a UAE backed $20bn bond program back in February 2009 and so far tapped about $15bn from the Central Bank of UAE ($10bn) and various Abu Dhabi banks ($5bn). This implicit federative support has helped Dubai government successfully raise another $2bn from private investors in October. What the events of the past 24 hours shown is that a generic Dubai bailout will probably not be available. The UAE authorities seem more inclined to act prudently and restructure outstanding liabilities of quasi-sovereign entities that may be facing significant solvency issues, rather than paying out creditors of the quasi-sovereign entities in full and on time.

As for Dubai World and Nakheel, the details of a potential restructuring are not known; it is not even clear which subsidiaries of Dubai World will be restructured, if at all. The latest developments surrounding Dubai World and Nakheel have obviously raised serious questions over the credit quality of both the sovereign and various quasi sovereign entities in Dubai.

The way in which the UAE authorities handle the problem will clearly be important for investor confidence, as it will set a precedent for Dubai. The situation remains fluid, but taking into view the huge reputational risks involved and also the amount of leverage that currently exists in emirate we believe that the UAE authorities will be more likely to try and secure an orderly restructuring of outstanding liabilities of the two firms.

The problem is that it may be technically difficult to engineer a voluntary restructuring of short-term liabilities in the coming few days, before December 14, when Nakheel’s $3.5bn sukuk bond will mature. In that case, we may well be looking at a technical default, unless UAE authorities announce a credible alternative (re)financing plan in due course.

Buy Ranbaxy if it Breaks 434

Buy Ranbaxy if it Breaks 434 for a tgt of 437 445 457

Bharti Airtel Long term Charts

IF we see the long term charts of Bharti Airtel it now has 2 supports at 267 the low which made recently and one more at 238 levels.The Rectangle which i have mentioned should be used to accumulate the stocks of bharti and if 238 breaks buy around 200 levels and forgot about the stock in your portfolio for coming 3-4 years.You will see your at least double. With the emergence of 3G and 4G in India telecom space the volumes will increase and that will increase the profitability of the company.

Trading Ideas

Buy Berger paints above 63 for a tgt of 66 and 70

Buy Bharat Electric once it crosses 1660 for a tgt of 1683 1720

Nifty Technical View

Nifty continued with its winning streak third week in a row with 1% gain on weekly basis.It made a u turn in the afternoon session on friday and closed up with 62 point gain,But was unable to breach the resistance of 5080 as shown in charts attached above.

FII and DII were net sellers on friday after such a good up move.Coming week is an expiry week so accept lots of volatility.My guess is if 5080 does not break on upside than we can go down till 4850.


Nifty Weekly Pivot: 5,021

Nifty Weekly Resistance: 5080 5,109.7 5,167.3

Nifty Weekly Support:4,875.3 4,963.7

Buy CROMPTON GREAVES if it breaks 415.6

Tgt 419 422 429

Nifty Technical View

NIfty is unable to cross the 5070 levels.Now point to ponder over is SMA cross over of 20 and 50 which is giving a bearish indication to me.

Also the Trendline near 5010 if breaks can see a serious unwinding of longs.

PUTS OI has deresed indicating shorted puts are geeting covered .IS it a prelude of a fall

Levels to be watched out:

Pivot 5048.8

Resistance 5087.5 5112.7 5151.3

Support 5023.6 4985.0 4959.8

Nifty Weekly Technical View

Nifty Daily Charts shows the trendline got broke in the 12 day fall we have seen but it again got up the trendline within 3 weeks so it can not be considered as violation in trendline and on going correction in the bull market.

Now whats next we are facing resistance at 5030 levels continuously in past 3 trading sessions.So that comes out to be resistance and can be considered stop loss for the shorts.

Momentum is fading in past couple of trading sessions. Now longs should protect there profits with a stop loss around 4940 levels.As nifty has closed above all its averages so it would be advisable not to short nifty now.Wait for some sign of weakness than short.



Levels which needs to be watched out

Weekly Pivot:4936

Weekly Support:4939 4875 4853 4708

Weekly Resistance:5030 5081 5164

Buy HDFC above 1742

Buy HDFC above 1742 for a tgt of 1756 1770 Support 1701

Trading Ideas

Buy Renuka once it crosses 220 for a tgt of 229 235 245 sl 195


Buy Tata Power if it breaks 1350 for a tgt of 1364

M&M with a technical look

M&M Stock is making a new High and institutional are quiet bullish on it.Looking technically at this stock is taking support at its trend line (Shown as green color in the chart)Stock is an ideal candidate to be bought on dips.

But one point of concern is Negative divergence which is observed in RSI and MACD.But to bring to user note that indicator can remain in negative divergence for a long period of time.

On upside the stock can touch 1150 touching the upper band of trend line,

For tomorrows perspective stock is a buy above 1014 for a tgt of 1037 1067 1090 Support is at 983 961

Nifty corrected from 61.8% retracement level

Nifty made low of 4542 and made a high of 5184 if we take fibo levels 61.8% it come around 4940 which is at level where we fall from today and we took support at 50% retracement level 4866.Next support comes around 4789.

Levels to be watched out tomorrow Buy Nifty above 4896

Resistance at 4932.9 4984.1 5020.5

Support at 4845.3 4808.9 4757.7

Primal Health-care Range Breakout above 408

Primal Health-care Range Breakout above 408 for a tgt of 414 421 430.


ACC Stocks at its 200 MA keep an eye on it Support is at 200 DMA

Pivot:717 Resistance at 725 731 739

Trading Ideas

Maruti Suzuki Unable to cross 50 SMA which is at 1523,If that is crosses can see 1546 1560 and if not can see 1503 1480 1392

RIIL - Buy above 964 Resistance at 993 1042 Suupport at 871

Buy HDFC Bank above 1652 For a tgt of 1670 1686 Support at 1623 1607

Buy Andhra Bank above 116 for a tgt of 120 123 126

Nifty Weekly Technical View

Nifty Weekly 5 EMA is at 4860 Levels which will prove as Resistance as of now. Support at 20 Week SMA at 4700.As mentioned in previous Week 20 Weekly SMA will provide as a support and nifty.Previous Week Post


Now looking at the Daily Charts of Nifty, We have closed above 5 EMA but resitance is now at 4830 which is both Pivot Resistance and 13 D EMA.

So Right now 4834 and 4860 will be immediate resistances and once crossed we can head towards 4930 4970

Nifty 4 day below 50 SMA

Nifty has remained 4 days below 50 SMA now again today is 4 day closing below 50 SMA so i am accepting a bounce back tomorrow. Above 4610 we can accept 4683 4802. Support at 4491 4419.

We will see a sharp bounce in coming days.

Trading Ideas

Support seen at 1536-40.If that is broken 1504 and 1467

Resistance seen at 1604 1641

Nagar Construction Support seen at 143 Resistance at 154 159 165

Buy above 1056

Resistance:1102 1135 1181

Support:1023 977

Nifty Weekly Technical View

IF we take the Fibo retracement Level from the high 5181 and low of 3912 we now stand at 38.2% Retracement level.A Bounce can be accepted till 50 SMA of 4858.

Weekly Pivot 4,811

Weekly Resistance: 4,934.5 5,157.0

Weekly Support:4,465.5 4,588.8

20 Week SMA which was Resistance will now become a support lets see?