Kingfisher Airlines Ltd is out of the lower circuits and is currently trying to move above Rs.7, on the new found optimism, that the required funding for the airlines would come from the UB Group and also the debt of the company has come down substantially during the last few days, due to the selling of the shares by the Banks (which were kept as collateral against the loans taken by the KFA Ltd). This will also have a positive effect on the interest cost on the company. It has already clocked in huge volume and this rise shows that there is an appetite for the scrip in the market. I think the retail investors are picking up the scrip of this once reputed airline for some positive development in the coming days. It seems the competitors of the Kingfisher Airlines Ltd tried to use the media to their own benefit, for the reasons best known to all. One of its group company UB Holding Ltd has already hit the upper circuits at Rs.40.60. CMP: Rs.6.80.
Yesterday, the markets performed better than expected. A reasonably flat opening was followed by sustained buying which took Nifty to around 5700 mark. The bulls were in full charge of the things and there was total absence of intraday correction---Nifty_Spot closed with a gain of 121 points. Inability of the bears to break 5475 (Nifty_Spot) level and a rise above 5615 has turned the market trend upwards. Nifty has reentered the zone above 200 DMA. Shares from almost all sectors are participating in the up-move setting an immediate target of 5850 for Nifty. It seems that intermediate correction that started in February has come to an end and uptrend is likely to get resumed. The Investor can continue to hold with their Nifty longs, for a target of 5850 (spot), in the coming days. There could be intra-day correction, which should be used to build up long positions. Nifty_Spot is now trading at 5680, which I am sure will improve in the coming hours.
Resistance: 5750 / 5790
Support: 5670/ 5645
US Equities ended up 1% on Tuesday, after hitting five-month lows on Monday, buoyed by robust earnings by index majors and positive economic data.
In Asia most indices rose as robust earnings by select companies in the US and positive economic data triggered bargain buying. However, the Asian markets are now showing mixed trend.
Fundamentally speaking, the stock indices may trade with a positive bias as the Nifty closed above its crucial resistance of 5650 on Tuesday & higher then estimated profit reported by Reliance and HCL Tech. However, profit booking at higher levels may cap the upside.
Today, Reliance Mediaworks Ltd moved to Rs.51.80 and Reliance Broadcast Network Ltd to Rs.27.80. In case of Reliance Broadcast Network Ltd, there is a positive news: BIG CBS Prime has inked deals with distribution platform providers to expand its reach to 30 mln households.