Tuesday, February 9, 2010

Market Outlook—February 10, 2010


Dealer’s Diary
The benchmark indices had a dull start after the US market suffered a severe setback yesterday, with the Dow sliding below the 10,000 mark. However, after a strong intraday rebound in morning trade, the market erased all its gains and slipped into the red briefly in mid-morning trade. Sustained buying demand in select pivotals and a rebound in Asian indices triggered a recovery in early afternoon trade. The BSE Sensex and NSE Nifty were up by 0.7% each. The BSE Mid-cap and Small-cap indices were up by 0.4% each. Among the front-liners, Grasim, ACC, Infosys, Wipro and Sun Pharma were up by 2-5%, while DLF, Hindalco, M&M, HUL and Maruti Suzuki were down by 1-2%. In the mid-cap segment HMT, STC, Patni Computers, National Fertilizers and BGR Energy were up by 6-11%, while Gujarat NRE Coke, Info Edge India, Petronet LNG, Parsvnath Developers and Indiabulls Real Estate were down by 3-6%.
The trend deciding level for the day is 16000/4781 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16137–16231/4822–4852 levels. However, if NIFTY trades below 16000/4781 levels for the first half-an-hour of trade then it may correct up to 15905–15769/4751–4710 levels.
Economic and Political News
Oil below $72 in Asian trade
Auto sales cross record 11 lakh units in January
Government mulls Rs50,000cr debt fund for infrastructure projects
Corporate News
ADAG firm hikes stake in Fame India by 2% through open market purchase
SAIL Bhilai unit set to return to normal production
L&T bags Rs582cr orders for execution of Electrical Projects

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