WTI at Two-Year High on Concern Syria Unrest Will Spread

WTI crude surged to the highest price since 2011 on concern that conflict in Syria might spread to other parts of Middle East and threaten oil supplies. Futures gained as much as 2.1% in New York, extending yesterday’s 2.9% advance. Britain, France and United States stepped closer to military strike against Syria, laying the legal groundwork to justify action after the country allegedly used chemical weapons. Brent of London might rise as high as $150 per barrel if conflict causes supply disruptions, as per Societe Generale SA. National Oil Corporation of Libya said output might have dropped below 200,000 barrels per day, the lowest since 2011 uprising against Muammar Qaddafi.
Phil Flynn, Senior Market Analyst, Price Futures Group, Chicago said Syria fears dominated as traders pondered the “what if scenarios”. For October delivery, West Texas Intermediate climbed as much as $2.31 to $111.32 per barrel in electronic trading on NYME (New York Mercantile Exchange), the highest intraday price since 3rd May 2011. For October settlement, Brent advanced as much as 2.2% or $2.54 to $116.90 per barrel on London-based ICE Futures Europe Exchange after settling on Tuesday at the highest since 25th February. European benchmark crude was set at a premium of $5.77 to WTI from $5.35 from yesterday.
Syrian Unrest
Brent might rise briefly to $150 per barrel if the conflict in Syria spills over into other parts of Middle East, causing supply costs. Michael Wittner, Head of Oil Market Research at Bank’s New York-based said the concern is that attack on Syria will reverberate through the region, increasing the spill over into other nations and resulting in a bigger supply disruption elsewhere. Any armed response against Syria would be narrowly focused on the country’s weapons capabilities and wouldn’t be aimed at depositing President Bashar Al-Assad, United Kingdom and United States officials said. As per data from International Energy Agency, Middle East accounted for 35% of international oil output in the initial quarter of 2013.
Military Strike
Jeffrey White, Former Analyst at Defense Intelligence Agency said Tomahawk cruise missiles are likely to be introduced at night against hundreds of Syrian targets if America and allies launch a military strike in retaliation for the use of chemical weapons. Libyan oil production fell to 1/8th of its capacity as protests over pay and allegations corruption spread to fields operated by Repsol SA and Eni SPA. American gasoline supplies shrank by 1.13 million barrels past week. An Energy Information Administration report today might show stockpiles slid by 1.38 million barrels as per median estimate of 12 analysts in a Bloomberg News survey.
Crude inventories increased 2.47 million barrels. The report from EIA, the statistical arm of Energy Department will perhaps show that supplies gained by 750,000 barrels. API in Washington collects stockpiles information on a volatile basis from operators of pipelines, bulk terminals and refineries. Government needs those reports be filed with EIA for its weekly survey.

NASDAQ Shutdown Forces SEC’s White Into Fight With Market Perils

A 3-hour shutdown of NASDAQ Share Market marks the first test of Securities & Exchange Commission Chairman Mary Jo White’s ability to push through stronger technology safeguards for electronic trading. Mary, a former prosecutor who lacks a background in market regulation responded to the failure by vowing to finish a rule proposed in March to need exchanges to test the reliability of their technology. Exchanges want to limit the number of systems covered by the rule and how much info they have to report about glitches. SEC has grappled with how to enhance market stability since 2010 flash crash, when $862 billion in equity was erased in 20 minutes before share prices recovered.

Andrew M. Klein, Partner at Schiff Hardin LLP and Former Director of markets and trading at SEC said Mary needs to be convinced these guys, all of them take this with utmost seriousness. NASDAQ is starting to look like you cannot be stopped from having these issues and it needs to stop. White signaled in her Senate confirmation hearing in March that she would scrutinize the dispersed, high tech and high speed marketplace, so that it can be optimally and wisely regulated.

Connectivity Issue                                    

NASDAQ said its failure this week stemmed from a connectivity issue between the network and exchange, known as securities information processor, which offers data about prices and quotes. SIPs or such systems are owned by 2 most significant operators – NYX (NYSE Euronext) and NDAQ (NASDAQ OMX Group Inc.). The rule proposal of SEC called Regulation SCI would need exchanges, clearing firms and SIPs for adopting policies to prevent failures, stress test their systems to make sure trading continues through a disruption, including a natural disaster or software glitch. The rule would also cover exchange competitors called alternative trading systems such as dark pools.

No Competition

SEC warned in its March proposal that SIPs could be vulnerable to glitches as there is virtually no competition amongst market data feeds offered to the public, which could lead to little incentive in ensuring high quality product with minimal disruptions. David Easthope, Research Director for securities and investment group at Celent, San Francisco said if you are thinking about investing in your budget for technology, you are going to invest in things, which bring in revenue not necessarily things, which are infrastructure or shared services across the industry.

Software failures have mounted as stock trading becomes more dispersed across multiple alternative trading venues and 13 United States equity exchanges. Larry Tabb, Chief Executive Officer at Westborough, Massachusetts based financial market consultant, Tabb Group LLC said the demand for faster dissemination of market data has forced exchanges to accelerate the movement of information through high speed proprietary data feeds and SIPs.

Faster Systems

Tabb said the way you wind up getting software to speed up is you take out all the protection. Exchanges are resisting Regulation SCI as they worry it will be used to fine them for software glitches which are impossible to eliminate. The rule would replace a voluntary program created after 1987’s share market crash and would expand SEC’s oversight to more systems, including those which support surveillance and regulatory compliance. James J. Angel, Finance Professor at Georgetown University’s McDonough School of Business in Washington said Reg SCI fundamentally gives provides SEC the ability to ding any exchange for any problem.

White’s Response

On 22^nd August, Mary White said that she would work to advance the proposal that passed SEC unanimously on 7^th March. She also said she would convene a meeting of exchange executives and other market participants for accelerating ongoing efforts to further reinforce our markets. Michael Piwowar, SEC Commissioner who joined the agency in August yesterday advised caution on advancing the regulation. Regulation SCI may or may not have contemplated what ultimately caused these disruptions. Thus, we should reconsider the assumptions underlying the Regulation SCI proposal before moving forward with further rulemaking.

Limiting Reports

Exchanges also want SEC to limit the rule to systems which support clearance, trading, order routing, market data and settlement in real time. They also say the commission should adopt materiality threshold to limit the number of system intrusions or compliance failures that must be reported to the regulator. The problem is finding a device to prevent this and recognize the truth of what the industry based message is, that you can’t have this kind of technology-based elaborate system and expect no failures.

CNX Nifty Futures Are Little Changed After Yesterday’s Rally

Indian Sensex stock index futures were little changed after equities rebounded on Thursday. For August delivery, SGX CNX Nifty Index Futures fell 0.1% to 5410.5 in Singapore. The underlying Nifty Index on NSE (National Stock Exchange) jumped 2% to 5408.45 on Thursday. Standard & Poor’s 500 BSE Sensex surged 2.3% to 18,312.94, climbing after its steepest 4-day retreat since 2009. Bank of New York Mellon India ADR Index of American traded shares rose 1.5%. RBI (Reserve Bank of India) said the country’s monetary and economic policies must preserve financial stability as the prospect of reduced Fed stimulus contributes to a slide in the rupee. Weakness in rupee could stoke already high consumer price inflation.

Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio Limited said that economic weakness and issues in rupee against dollar continue to be the main concerns right now. Duvvuri Subbarao, Governor at Reserve Bank and Palaniappan Chidambaram, Finance Minister held coordinated briefings in New Delhi on Thursday to try to soothe investors’ nerves. Excessive pessimism is unwarranted, economic expansion will pick up as year progresses and rupee’s drop has overshot appropriate levels.

Record Low

The officials said, India has no intention of imposing capital controls. Last week, Reserve Bank cut the amount Indian firms can invest abroad without approval and said residents can remit $75,000 per financial year down from $200,000. Rupee touched an unprecedented low on Thursday as concern the Federal Reserve will taper stimulus prompted investors to pull billions of dollars from emerging markets. The 2^nd largest aluminum manufacturing company of India, Hindalco Industries Limited might move. The company is seeking enhanced terms on as much as $2.7 billion of debt as projects funded by rupee loans start. The 3^rd biggest economy of Asia might expand 5.5% in the year to March 2014, as per Central Bank estimates. The ten-year average is around 8%. Auto sales have dropped for 9 straight months through July, whereas industrial production fell 2.2% in June.

Corporate Earnings

Weak currency and economic slowdown is hurting company earnings. Anand Kumar and Jyotivardhan Jaipuria, Analysts at Bank of America Corporation said combined profits for 30 firms in Sensex increased 1.4% in 3 months ended June, unlike an estimate of 5.8% before reporting season. Around 47% of Sensex firms, which posted earnings for June quarter missed analyst estimates; that compares with 43% in 3 months ended December and 27% for March quarter. Sensex lost 5.7% in 2013 and trades at 13 times projected annual earnings unlike 9.8 times of MSCI Emerging Markets Index. Global investors sold a net $118 million of Indian shares on 21^st August; that pared this year’s inflow to $12.1 billion.

BSE Sensex, Nifty Flat; Jet Airways Crashes 9 Percent

The market opens on a stable note as it seems to be quite relaxed ahead of the RBI credit policy review. The Sensex is up 79.32 points at 19257.25 while the Nifty is up 9.00 points or 0.15% at 5817.40. About 193 shares have advanced, 81 shares declined, and 29 shares are unchanged.

ITC Holdings Corporation, Tata Motors, Wipro, Jindal Steel and GAIL are the most significant losers in Sensex. Ahead of mid-quarter review of monetary policy today, SBI (State Bank of India) said if apex bank can’t reduce CRR rate that’s a must for lending rate cuts by banks, they need to pay interest on cash reserves, which banks park with monetary authority. Pipavav Defence bags contract worth Rs. 1160 crores for building 2 offshore vessels for European client. Stock is up 0.9% on Bombay Stock Exchange. Incidentally, many analysts expect Reserve Bank of India to hold rates during its mid-quarter monetary policy review.

Kotak Securities, brokerage house has updated its rating on Reliance Industries from reduce to add and increased price target from Rs. 855 to Rs. 870, on the hopes of higher margins and volumes in the refining and petrochemical business. The beginning of significant capex cycle (more than $15 billion) in its main businesses will be translating into two margin enhancements for petrochemical and refining categories and one growth in volumes for exploration and production and petrochemical categories. Amongst midcap shares, Punj Lloyd, Balrampur Chini, Opto Circuits, Future Retail, Jet Airways and Guj Flourochem are major losers.

A day after Congress Party revamped its organization, it is now expected that Sonia Gandhi, UPA Chairperson and Manmohan Singh, Prime Minister will be reshuffling the Cabinet today. Nifty is down 6.65 points at 5801.75, while Sensex is down 1.08 points at 19,176.85. Jet Airways crashes around nine percent as government deferred clearance of Etihad’s proposal for purchasing 24% shares in domestic airline.

Mahindra & Mahindra has announced the multi-structured deal entering into stock swap with CIE Auto of Spain purchasing 13.2 percent shares in CIE Automotive. The organization will be funding this purchase through selling shares in 3 group companies to CIE. Mahindra Forgings is up 2.47%, while Mahindra Ugine Steel Company is up 9.97%. Maruti Suzuki, Tata Steel, Sun Pharma, Hindalco and Mahindra & Mahindra are some top gainers in Sensex. In the meantime HUL (Hindustan Unilever Limited) and Wipro are on the downside in opening trade.

Mr. Agam Gupta, Standard Chartered Bank stated that rupee could reinforce marginally on the rate cut and on the positive trade data. The bank expects 25bps Repo rate cut; nonetheless the risk of no rate cut is high because of current rupee depreciation. The range for rupee is seen between 57.40/57.90/USD. Japanese markets were up almost two percent, while trade in rest of equity markets of Asia was subdued ahead of this week’s Federal Reserve policy meeting. In commodities, Brent Crude hit 9-month high, increasing above 105dpb (dollars per barrel). From precious metals space, gold is hovering around 1388 dollars an ounce.

 

BSE India Tips

Share tips are also known as intraday share/stock tips or stock tips in Indian stock market. Money making is the primary and most significant objective of all investors in any commodity or stock market world over. Trader’s success or trading strategy is judged by the amount of return it generates. If you are seriously planning to invest in Indian share market then it is important for you to do a bit of homework, meaning you need to research in best possible ways. You need to get precise information so that it helps you to get best shares possible. You can also make good efforts to know how to get precise BSE India tips.

BSE India tips, NSE tips, guidelines and suggestions have always been handy for both seasoned and novice traders and investors. NSE (National Stock Exchange) is one of the major stock exchanges in the country, one more being BSE (Bombay Stock Exchange). Index applied by NSE is called nifty. Several activities and operations of National Stock Exchange are performed under directive of SEBI (Securities Exchange Board of India) that was founded by the Government of India to govern all exchanges in India. This suggests that you can’t be fooled by trading in BSE or NSE stock market.

Besides stock market, traders also opt for commodity market, which consists of NCDEX (National Commodity & Derivatives Exchange) and MCX (Multi Commodity Exchange). Thus several commodities tips are also sought by traders to taste success in such markets. MCX market comprises metals, which include copper, gold, zinc, silver, lead and aluminum. You will also find numerous agencies in the market, which provide BSE India tips, MCX tips and advices on intense analysis basis to make investment in specific metal. They have professionals who have in-depth knowledge of market movements and create analysis by researching international markets also.

Coming back to nifty tips, they are principally based on or concerned with news updates on NSE, top gainers and losers, stock charts, real-time nifty stats and more. BSE India tips and NSE tips assist investors and traders in making knowledgeable decisions by making watchful studies of market trends. By making most of share tips, novice investors derive significant advantages by getting the complete scenario of the market. Nonetheless, you should realize that investing money in commodity or share markets involves huge risk. For instance, you might get disturbed witnessing downturn in the stock market.

BSE India Tips and NSE Stock Tips for profitable investment decisions:

Traders should have fair knowledge of Indian stock market to be proactive and take control of their financial investments. Hence, NSE and BSE India tips are fundamentally for those who are not able to do proper stock market research because of lack of time.

NSE Stock Tips and BSE India Tips can help you understand the market and develop sound investment plans for commodity trading and share market trading.

You can also opt for few stocking broking firms, which provide tips for its customers.

It is not always essential that NSE Stock Tips and BSE India Tips that are offered by broking companies are credible enough to do stock trading. For this, you also need to open stock trading and Demat account with reputed broking firm, so that you can depend on their stock tips and advice.

Once you start NSE and BSE stock trading, it is beneficial that you should have minimum knowledge about stocks.

You can also look for multiple broking companies for BSE India Tips and NSE Stock tips, as different broking firms provide different advantages and services.

Always follow Indian stock market

Never hesitate to ask for the advice of a professional

Always keep n mind, this is your hard earned money. So you need to take care of it and be cautious at every level, if you are taking calls from professionals too.

Get an idea about today’s SENSEX and NIFTY

Everyone wants to know about markets and most of us are so curious that we want to know the road ahead for the markets before investing our money into it. So here is a brief report about the road ahead for the SENSEX and the NIFTY.

SENSEX:

The SENSEX has witnessed a minor pullback during yesterday’s session. We believe that any dips towards the 20700 levels should be viewed as a good buying opportunity. Sustenance above the 20700 levels or above its near term EMA will see the index heading towards the 21200 levels. We expect the SENSEX to trade broadly in a range of 20700—21200 levels. A break below this level will trigger a pullback to the 20500 levels.

The IT, Consumer durables and Banking indices closed the session with cuts of over 1%. The Health care index closed the session with a gain of 0.65%.

We had recommended buying Prism Cement at `59.50 to the subscribers of our product Delivery calls section. The stock saw a smart rally during yesterday’s session of trade to register a high of `64.40. We   booked part profits at `64 levels, generating a handsome return of 7.5% to our clients.  We are still bullish on Prism and holding our positions for the target of `69/70 levels.

Today’s supports for the SENSEX are placed at the 20750 and 20600 levels whereas resistances are placed at the 21000 and 21200 levels.

NIFTY:

The NIFTY has witnessed a minor pullback during yesterday’s session. We believe that any dips towards the 6230–6200 levels should be viewed as a good buying opportunity. Sustenance above the 6200 levels or above its near term EMA will see the index heading towards the 6350 levels. We expect the NIFTY to trade broadly in a range of 6250—6350 levels. A break below this level will trigger a pullback to the 6150–6180 levels.

We had recommended buying Pun Lloyd to our clients in our product Equity Intraday stock calls section at `128.10 levels. We booked full profits at `130.40 levels fetching a profit of `4600/- per lot to our subscribers of the above product.

We recommend subscribing to our Product Equity Intraday stock Calls section to avail more profitable trading calls.

Today’s supports for the NIFTY are placed at the 6200 and 6230 levels whereas resistances are placed at the 6350 and 6375 levels.

For regular updates just click here: Devang Visaria.

Trading report about SENSEX and NIFTY

SENSEX:

The SENSEX is facing immediate resistance around 20450 levels.  Any sustained close above the 20450 levels will see the index making a move past the highs of 20855 levels registered in the month of October. We reiterate that the rising gap from 20100 levels will act as a crucial support zone for the SENSEX and any dip towards these levels should be considered as a good buying opportunity. A break below the 20100 levels will see a decline to the recent lows of 19780 levels.

We had recommended buying ACC to our clients in our product Equity Trading Calls Section at 1000 levels. The stock was seen consolidating between the ranges of 980—1025 levels for few weeks before giving a breakout from this range on the back of robust volumes. We booked part profits at 1033 levels whereas full profits were booked during yesterday’s session at 1047 levels.

We recommend subscribing to our Product Equity Trading Calls section to avail more profitable trading calls.

Today’s supports for the SENSEX are placed at the 20250 and 20100 levels whereas resistances are placed at the 20450 and 20550 levels.

NIFTY:

NIFTY (6117.55) SU—6040—6070 Re—6150—6170. Any sustained close above the 6150 levels will see the index making a move past the highs of 6284 levels registered in the month of October. A break below the 6040 levels will see a decline to the recent lows of 5940 levels.
We recommend buying Chambal Fertilizers. The stock, after taking support at its short term moving averages has seen a smart rally during yesterday’s session and also closed above its downward sloping trendline. This move was accompanied by robust volumes. The RSI indicator on Daily chart is also in buying mode. We recommend buying now & again on dips to 81.50–82 levels for a target of 88 and/or 92 levels with a stoploss placed below 79.80 levels.  We have already recommended buying the stock to our clients at 83 levels.
We recommend subscribing to our Product Delivery Calls section to avail more profitable trading calls.
Today’s supports for the NIFTY are placed at the 6040 and 6070 levels whereas resistances are placed at the 6150 and 6170 levels.

Report has been generated based on the share market tips given by Devang Visaria.