Sunday, February 21, 2010

Market Outlook---February 22, 2010

Dealer’s Diary
The benchmark indices dropped in choppy trade, after the US Federal Reserve raised its discount rate from 0.5% to 0.75%, effective from February 19, 2010, for the first time since the financial crisis. Weakness prevailed on the bourses in morning trade. A bout of volatility was witnessed in the second half of the trading session. The market staged a strong intraday rebound in mid-afternoon trade after a sharp slide in afternoon trade. The BSE Sensex recouped nearly all the intraday losses in late trade. However, the intraday rebound proved short-lived. The market once again lost ground towards the close of the trading session. The BSE Sensex and NSE Nifty closed down by 0.8% and 0.9%, respectively. The BSE Mid-cap and Small-cap indices also closed in the red, down by 1.4% and 1.6%, respectively.
The trend deciding level for the day is 16189/4846 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16304–16417/4886–4928 levels. However, if NIFTY trades below 16189/4846 levels for the first half-an-hour of trade then it may correct up to 16077–15962/4805–4764 levels.
Economic and Political News
RBI cuts ceiling rate on export credit
Iron ore exports decline 11% in December, 2009
Telecom MNP expected to be launched by May first week
Corporate News
Renuka Sugars buys Brazil’s Equipav SA for Rs1,530cr
Sun Pharma's cancer drug application gets EMA backing
Great Offshore gets board's nod for raising Rs 1,750cr

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