MCA's early warning system detects 160 corporate frauds

The Government has found financial irregularities in 160 companies--a whopping 30 of them owned by it--thanks to the early warning system that was put in place last year.

After the nearly Rs 10,000-crore Satyam fraud last year, the Ministry of Corporate Affairs (MCA) in September had developed an early warning system (EWS) to detect corporate frauds.The software-based fraud detecting system scans firms based on 10 financial parameters set by the ministry.

"We have asked the Registrar of Companies to inspect the books of about 130 companies based on the preliminary findings of the EWS and some 30 PSUs would be referred to the Comptroller and Auditor General," an official source told media.

The sources said the EWS has detected discrepancies like fund diversions in own subsidiaries as well as other firms, irregularities in filing balancesheets, and asset-liability mismatch.

"There are some blue-chip companies against which the EWS has given out alerts and we are also carrying out inspections, both invasive and non-invasive, of their books as per Sections 209 and 234 of the Companies Act," the official said without divulging the names of the companies in question.

With the early warning system, the corporate affairs ministry sources said, unusual developments are looked into by scrutinising the quarterly results of companies, their public announcements, filings with exchanges, tax returns, and media reports among others.

On the effectiveness of the system to prevent a Satyam- like fraud which went on undetected for years, corporate affairs minister Salman Khurshid had earlier said,"essentially I put it like a medical test...lipid profile test to tell if your lipid profile is going wrong so that we step in immediately."

The objective of the EWS would be to develop a permanent system for scanning everybody, he said.

However, the system will monitor those information "which the public has the right to know, which are in the public domain and which can give indications of performance...after all that's how people judge performance in the marketplace," the minister had said.

As you drench yourself in the colors of friendship and love,
May this Holi replete your days ahead;
With colors of togetherness, warmth ‘n ecstasy,
To keep u glowing with new vigor all year through.

Wishing you and your Family a Very Happy and Colorful Holi

Bernanke delivers blunt warning on U.S. debt

With uncharacteristic bluntness, Federal Reserve Chairman Ben S. Bernanke warned Congress on Wednesday that the United States could soon face a debt crisis like the one in Greece, and declared that the central bank will not help legislators by printing money to pay for the ballooning federal debt.

Recent events in Europe, where Greece and other nations with large, unsustainable deficits like the United States are having increasing trouble selling their debt to investors, show that the U.S. is vulnerable to a sudden reversal of fortunes that would force taxpayers to pay higher interest rates on the debt, Mr. Bernanke said.

"It's not something that is 10 years away. It affects the markets currently," he told the House Financial Services Committee. "It is possible that bond markets will become worried about the sustainability [of yearly deficits over $1 trillion], and we may find ourselves facing higher interest rates even today."

It was some of the toughest rhetoric to date about the nation's fiscal and budgetary woes from the Fed chief, who faces a second round of questioning Thursday before a Senate panel.

READ FURTHER FOR RELATED STORY:http://www.washingtontimes.com/news/2010/feb/25/bernanke-delivers-warning-on-us-debt/

FII SOLD 595 CR IN F& O
FII BOUGHT 616 CR IN CASH
DII bought 326 CR
SGX NIFTY CLOSED@ 4857/4810(MADE AN INTRADAY LOW OF 4806)
VIX-29.55
$ INDEX- 80.97(PREV CLOSE-80.91)

NS VIEWS:
RES:4884-4910-4930
SUP:4835-4803-4772

BUY ABV 4862,SELL BELOW 4846
TOMM NIFTY MAY OPEN WITH NEGATIVE BIAS(OR EVEN GAP DOWN)ON WEAK GLOBAL CUES, NIFTY MAY FIND STRONG SUPP NEAR 4803-4797..AAND MAY PAUSE IN RANGE TILL BUDGET SPEECH STARTS..MAY SEE STRONG RECOVERY FROM 4803 ,BUT IF BUDGET DOES NOT TURN OUT TO BE MARKET FRIENDLY THEN EXPECT MORE SELL OFF COMING TO 4772-4748...IF BREAKS 4748..THEN SWIFT FALL TO 4685-4635.
BUT IF RECOVERS ON POSITIVE VIEWS IN BUDGET THEN ABV 4835 MAY SEE 4860-4884-4910

BUY NF NEAR 4803 WITH SL 4772..FOR TGTS 4860-4884..IF GOES BELOW 4748 AND SUSTAINS BELOW IT THEN SHORT WITH SL 4772 FOR TGTS 4718-4685-4635

CAUTION IN ALL TRADE IS ADVISABLE AND PLEASE TRADE WITH STRICT SL AS MARKETS CAN BE VERY VOLATILE TOMMORROW

Two things always in Life to be remembered...
Don't take any decisions when you are Angry...
& Don't make any promises when you are Happy..

FII SOLD 747 CR IN F& O
FII BOUGHT 486 CR IN CASH
DII SOLD 155 CR
SGX NIFTY CLOSED@ 4862/4879(MADE A HIGH OF 4896)
VIX-30.40
$ INDEX- 80.71(BULISH 4 EMERGING MKT)

NS VIEWS:
RES:4897-4929-4949
SUP:4835-4803-4782

BUY ABOVE 4866,SELL BELOW 4852

TOMM NIFTY MAY OPEN WITH +VE BIAS(OR GAP UP)NEAR 4897 & IF SUSTAINS ABOVE THAT MAY SEE STEADY UPMOVE TILL 4949 WITH SOME INTRA CORRECTIONS NEAR 4910 &4929 LEVELS...TILL NIFTY DOES NOT CLOSE THE OPENING GAP IT IS BUY ON EVERY DIPS INTRADAY...KEEP LONG POSITION OPEN WITH TSL.
BUT IF DOES NOT MOVE ABOVE 4910-15,THEN CAN BE SHORTED WITH SL 4929 FOR TGTS 4884-4860-4835...BELOW THAT EVEN 4805 MAY BE TESTED

UNWINDING IN 4800 AND 4900 CE OPEN INTEREST AND ADDITION IN O.I IN 4800 AND 4900PE SUGGEST BULLISH SENTIMENTS FOR TOMM,BUT BEING DERIVATIVE EXPIRY DAY NIFTY IS AT MERCY OF OPERATORS.
TOMMORROW ALSO ECONOMIC SURVEY REPORT WILL BE DECLARED

IF NIFTY MOVES PAST ABOVE 4930 AND CLOSE ABOVE IT FOR 2 DAYS THEN MAY SEE TGTS OF 5032-5077 IN FEW DAYS & IF NIFTY DOES NOT CLOSE BELOW 4860 THEN MAY EXPECT 5322 IN MARCH SERIES

Ten people who speak make more noise than ten thousand who are silent

FII BOUGHT 238 CR IN F&O
FII BOUGHT 551 CR IN CASH
DII SOLD 180 CR
SGX NIFTY CLOSED@ 4880/4836( MADE A LOW OF 4816,..IN MARCH T+1 SERIES SGX NIFTY MADE AN INTRADAY HI OF 4940 AND LOW OF 4820)
VIX-30.99
$ INDEX-80.98(AT DAYS HI)

NS VIEWS:
RES:4884-4912-4930
SUP:4835-4803-4782
TOMM NIFTY MAY OPEN WEAK AND MAY TRADE IN 4803-4884 RANGE,
SELL BELOW 4861 FOR TGTS 4835 AND 4803,BUY ABV 4877...FOR TGTS 4884 /88AND 4908/12

TOMM NIFTY MAY OPEN NEAR 4835-27 RANGE AND MAY DRIFT LOWER NEAR 4803/4798 LVLS,WHERE STRONG BUYING IS EXPECTED..
HERE BUY NF OR 4800CE WITH 20 PT STOPLOSS FOR TGTS 4835-4860-4884
IF THAT DOES NOT SUPPORT AND BREAKS THEN ANOTHER ROUND OF FALL MAY SEE NIFTY DRIFTING LOWER TO 4775-82 AND 4747-52 LEVELS..
IF 4747 IS HELD AND DOES NOT BREAK THEN EXPECT SHARP UPMOVE TO 5032-5077 IN COMING DAYS

IN INTRADAY CHARTS NIFTY IS MAKING A SYMMETRICAL TRIANGLE PATTERN WITH BREAKAWAY POINTS AT 4888 AND 4849 FOR 100 POINTS RANGE EITHER SIDE,FOR TGTS 4988 AND 4749..ABV 4930 AND BELOW 4798 NIFTY MAY SEE FAST MOVE TOWARDS RESPECTIVE TGTS.
A fine is a tax for doing wrong. A tax is a fine for doing well.

FII BOUGHT 911 CR IN F&O
FII SOLD 102 CR IN CASH
DII BOUGHT 117 CR
SGX NIFTY CLOSED @ 4855/4857
VIX-32.13
$ INDEX-80.61(PREV CLOSE-80.72)

NS VIEWS:
RES:4870-4897-4920
SUP:4835-4811-4788
TOMM NIFTY MAY OPEN FLAT AND MAY TRADE IN 4835-4897 RANGE,
BUY ABV 4861 AND SELL BELOW 4848

HAVE STRONG SUPP NR 4822-4835 RANGE,BELOW THAT NIFTY MAY TURN WEAK,IF TAKES SUPP NEAR THESE LEVELS THEN STRONG BOUNCE CAN BE EXPECTED FOR TGTS 4920-4953

MAY SEE SOME RES NEAR 4884-4893,IF COULD NOT BREAK ABV THESE LEVELS THEN MAY SEE SEVERE FALL IN COMING DAYS,IF BREAKS AND TRADE ABV 4897-4903 THEN EXPECT SHORTCOVERING FOR TGTS 4920-4953

EXPECTING NIFTY TO TRADE WITH HUGE VOLATILITY TILL BUDGET DAY NOW

WEEKLY ANALYSIS (FROM 22/2/2010 TO 26/2/2010):
RES:4930-4973-5032
SUP:4805-4747-4675
NEXT WEEK BEING DERIVATIVE EXPIRY ON 25TH AND UNION BUDGET ON 26TH MAY MAKE NIFTY VERY VOLATILE IN RANGE OF 4747-4930,BREAK OF THESE LEVELS MAY GIVE FURTHER DIRECTION TO MKTS.
TILL NIFTY DOES NOT CLOSE BELOW 4777 IT IS IN SHORT TERM UPTREND AND IF IT DOES NOT BREAK 4747 AND MOVES ABV 4930 WITH VOL WILL FORM AN INV HEAD & SHOULDER PATTERN IN NIFTY DAILY CHARTS FOR TGTS OF 5150-5180 IN COMING DAYS POST BUDGET.

NS VIEWS (22/2/2010)
RES:4862-4884-4920
SUP:4820-4803-4777
TOMM NIFTY MAY OPEN FLAT & MAY TRADE IN 4820-4920 RANGE...BUY IF NS TRADE ABV 4862 OR IF NIFTY FALLS THEN BUY ANY DIPS NEAR 4820-4803 WITH SL 4777 FOR TGTS 4920
ANY CLOSE ABV 4871 MAY MAKE NIFTY LOOKS BULLISH FOR 4930-4973 IN COMING DAYS

FII SOLD 1010 CR IN F & O,
FII BOUGHT 18 CR IN CASH,
DII SOLD 397 CR,
SGX NIFTY CLOSED @ 4844/4898
INDIA VIX-31.90
DOLLAR INDEX-80.76(MADE AN INTRADAY HIGH OF 81.43)

WEEKEND READING:

Next wave of bankruptcies coming: Grant

Thornton

Distressed investors should brace for another wave of bankruptcies as early as this year as more corporate debt payments come due, a senior partner at Grant Thornton said on Thursday.

Debt extensions have helped put off various crises and postponed some distressed situations or even bankruptcies. As the economic recovery stretches, however, more corporate pain can be expected, said Harris Smith, a managing partner with Grant Thornton's private equity group based in Los Angeles.

"I think it's a matter of time before the bankruptcies start increasing again," Smith told Reuters. "People thought everything was getting better, but it perhaps it isn't.

for more:http://in.reuters.com/article/businessNews/idINIndia-46287120100218

FII SOLD 48 CR IN F & O,
FII SOLD 351 CR IN CASH,
DII SOLD 123 CR,
SGX NIFTY CLOSED @ 4884/4918
DOLLAR INDEX-80.515(TODAY RETESTED PREVIOUS HI OF 80.835 BUT COULD NOT BREAK ABOVE IT,MAY SEE SOME CORRECTION IN COMING DAYS FOR TGTS 79.65-78.47 WHICH MAY SEE SOME UPMOVE IN EQUITIES AND COMMODITIES MKTS)

NS VIEWS:
RES:4911-4947-4968
SUP:4873-4856-4838
TOMM NIFTY MAY OPEN FLAT AND MAY TRADE IN 4873-4911 RANGE FOR SOMETIME MAKING TRIANGLE PATTERN BE4 GIVING ANY BREAKOUT,MOST PROBABLY MAY BE ON UPSIDE ABV 4911 FOR TGTS 4947 ,ABV THT IF MOMENTUM CONTINUES CAN TGT 4968
4863-56 RANGE MAY GIVE STRONG SUPP TO NIFTY IF FALLS BELOW 4873

BUY NIFTY 4900 CE OPTIONS NEAR 40-45 RANGE FOR TGTS 150+..SL 20

STOCKS TO WATCH FOR UPMOVE ARE UNITECH,SUZLON,REL CAPITAL,ASTRA MICRO,
ATLAS CYCLES,ALPS IND,RUCHI INFRA,OCL IRON,

NS VIEWS:
RES:4931-4953-4973
SUP:4888-4863-4846
TOMMORROW NIFTY MAY OPEN FLAT AND MAY TRADE IN 4930-4888 RANGE FOR SOMETIME.
BUY ABV 4920,SELL BELOW 4908,

BREAKOUT OF RANGE MAY GIVE 4953-4973 AND 4863-4846,THERE IS VERY STRONG CHANCE OF HUGE VOLATILITY IN INTRADAY TRADE TOMM WITH LARGE SWINGS ON BOTH SIDES.

THERE IS HIGH PROBABILITY THAT NIFTY MAY RETEST LOWER LEVELS OF 4860-40 TOMMOROW BEFORE MAKING ANOTHER STRONG UPMOVE.
BUY NEAR 4860-40 WITH SL BELOW 4818

DOLLAR INDEX TRADING AT DAYS HIGH OF 80.61 (MADE LOW OF 79.61)WHICH MAY BE BEARISH FOR ASIAN EMERGING MARKETS

SGX NIFTY CLOSED @ 4908/4907

INDIA VIX-29.04 SUGGESTS INSTABILITY AND VOLATILITY

TODAY NS TRADED IN 4791-4880 RANGE WITH CLOSE AT 4855,

TODAY SGX NIFTY CLOSED @4878/4895 WITH A HIGH OF4954.5,

DOLLAR INDEX@79.74 WHICH IS POSITIVE FOR ASIAN EMERGING MARKETS,

TOMMORROW NIFTY MAY OPEN WITH POSITIVE BIAS AND MAY MOVE UPTO 4899,IF TRADE AND SUSTAIN ABV THAT 4919-4929 MAY COME IN QUICK TIME,SOME RISKY SHORTS CAN BE OPENED THERE FOR TARGETS OF 4830-4846 WITH SL ABV 4939,NIFTY IS A BUY AGAIN NEAR 4846-4830 FOR TGTS 4953-4994-5032 IN FEB SERIES BEFORE BUDGETS.
IF 4939 SL IS HIT THEN REVERSE TRADE FOR TGTS 4953-74 WITH SL 4919

IN COMING DAYS NIFTY MAY SEE STRONG VOLATILITY AFTER BEING IN SHORT RANGE SINCE LAST 4 DAYS.
TILL NIFTY IS MAKING HIGHER HIGHS AND HIGHER LOWS THESE VOLATILITY MAY FAVOUR BULLS.TILL NIFTY DOES NOT FALL BELOW 4757-4722 RANGE POSITIONAL LONGS CAN BE HELD FOR TGTS 4858-4939-4994 IN COMING DAYS BE4 EXPIRY.

NS VIEWS:
FOR 16/2/2010:
RES:4816-4842-4978
SUP:4791-4777-4752

BUY NF ABV 4804 WITH SL 4791
SELL BELOW 4791 WITH SL 4804

FII BOUGHT 291 CR IN F & O.
FII BOUGHT 196 CR IN CASH
DII SOLD 114 CR
INDIA VIX-28.81
SGX NIFTY CLOSED @ 4793/4790.5
NIFTY 50 ADV/DEC-19(16.6PTS):31(41.47 PTS)
DOLLAR INDEX-80.435

FOR NEXT WEEK NIFTY HAS STRONG SUPPORTS NEAR 4777,IF BREAKS BELOW 4777 CAN SEE 4722 IN QUICK TIME,ABV 4846 NIFTY MAY MOVE UPTO 4878 AND THEN WILL FACE RES NEAR 4913-4919 RANGE,WEEKLY TGTS CAN BE 4994 WITH HUGE INTRADAY VOLATILITY.

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