NIFTY TRADING ABOVE 7400 MAY LEAD TO SHORT COVERING.

      Indian markets are expected to open on positive note on favorable domestic & international cues. U.S. stocks gained for a third day on Friday and Asian markets today are also trading mostly in green. The market may remain volatile this week as traders roll over positions in the F&O segment from the near month May 2014 series to June 2014 series. The near month May 2014 derivatives contract expire on Thursday, 29 May 2014. After BJP led NDA landslide victory in the recently concluded Lok Sabha election, investors are expecting measures from the incoming government to revive the Indian

economy. There are expectations that Narendra Modi will be in a position to replicate the economic success he enjoyed in Gujarat state when he takes over as the country's Prime Minister.

MOVERS & SHAKERS

Ashok Leyland : Shares in Ashok Leyland zoomed 13.67%, hitting 4.5-year high at Rs 32.85 per share on Friday Friday on the back of March quarter earnings. It reported a net loss of Rs13 crore, adjusted for exceptional gain on account of sale of non core assets, which is much-lower-than expectations.

Jain Irrigation : Shares of Jain Irrigation surged 10.58 % hitting 25-month high at Rs 122.30 per share on Friday. Investors are lapping up the midcap stock as its March quarter net profit jumped 39 % to Rs 75.34 crore, driven by higher sales.

JK Lakshmi Cement: Shares in JK Lakshmi Cement jumped 3.28 % on Friday as it reported strong revenue growth (21 %) in March quarter, on the back of higher volumes while margins expanded 470 basis points sequentially at 17.3 %.

RBI COUNTER

DAILY LAF TENDERS: One set of 1-day reverse repo (at 7.00%) and 1-day repo (at 8.00%). Bids for repo tender may be submitted between 0930 IST & 1030 IST, and reverse repo between 1900 IST and 1930 IST.

MARKETS

Call  : Seen opening higher at 8.10-8.20% Mon on likely demand for funds from banks. 1-day call: 7.90-8.20% vs 6.00% two-day call Sat.

Bonds : Seen steady on Mon due to improved appetite for gilts from FIIs. 10-year bond yield: 8.59-8.68% vs 8.64% Fri.

Rupee : Seen opening largely unch Mon. Importers' dollar buys may weigh. Global cues, shares eyed. Range: 58.25-58.85/$1 vs 58.52/$1 Fri.

Stocks: Seen opening marginally higher tracking firm global cues. Nifty range 7300-7420; Friday-end 7367.10, up 90.70 points.

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