Wednesday, February 10, 2010

Market Outlook—February 10, 2010

Dealer’s Diary
The market pared gains soon after a firm start triggered by higher Asian stocks. The market slipped into the red in early trade as US index futures fell. It moved between the positive and negative terrain after recovering sharply from the intraday lows in mid-morning trade. The market re-gained positive zone in afternoon trade. It reversed gains to hit fresh intraday low in late trade. Banking, capital goods, FMCG, healthcare and power stocks fell. The BSE Sensex was down by 0.8%, while NSE Nifty was down 0.7%. The BSE Mid-cap remained almost flat, while Small-cap indices were up by 0.1%. Among the front-liners, Hindalco Industries, HDFC Bank, Sterlite Industries, Grasim Industries and Hero Honda were up by 0.8-1.7%, while Mahindra & Mahindra, SBI, Tata Steel, Sun Pharma and L&T were down by 1.8-3.4%. In the Mid-cap segment HMT, Apollo Tyres, Glaxosmithkline Consumers, REI Agro and Emami were up by 6-11%, while Monsanto India, Chambal Fertilizers, IBN18 Broadcast, Nagarjuna Fertilizers and Patni Computers were down by 3-7%.
The trend deciding level for the day is 15985/4777 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16078–16234/4807–4856 levels. However, if NIFTY trades below 15985/4777 levels for the first half-an-hour of trade then it may correct up to 15829–15736/4728–4699 levels.
Economic and Political News
India Inc to pay Rs21,000cr more if excise goes up 2%
RBI to replace BPLR with Base rate from April’10
Government developing infrastructure projects worth Rs2.24 lakh cr
Corporate News
NIIT Tech bagged Rs228cr government project
Hero Honda eyes Rs800cr facility in Gujarat
ArcelorMittal will hike its stake in Uttam Galva to 33.7% by Feb’10

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