Tuesday, February 2, 2010

Market Outlook—February 3, 2010


Dealer’s Diary
Key benchmark indices extended losses to fresh intraday lows in late trade as investors turned cautious ahead of the opening of the large follow-on public offer (FPO) of state-run power generation firm NTPC. The market pared gains as some Asian stocks reversed gains and US index futures fell. Attempts at a recovery proved futile as heightened volatility pushed the markets to close near the day’s lows. The BSE Sensex and NSE Nifty closed in the red losing 1.2% and 1.4% each. The BSE Mid-cap and Small-cap indices outperformed the benchmark indices with losses of 1.2% and 0.8% respectively. Among the frontliners, HDFC, Hindalco Industries, Sun Pharma and ONGC were up by 0-2%, while Jaiprakash Associates, Grasim Industries, Reliance Communications, M&M and NTPC were down by 3-4%. In the Mid-cap segment, Spice Communications, Emami, National Fertilisers, HT Media and KGN Industries were up by 5-17%, while Tulip Telecom, Anant Raj Industries, Bajaj Hindusthan, Thomas Cook and Andrew Yule were down by 5-6%.
The trend deciding level for the day is 16273/4865 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16,417–16,670/4,916–5,002 levels. However, if NIFTY trades below 16,273/4,865 levels for the first half-an-hour of trade then it may correct up to 16,020–15,876/4,779-4,728 levels.
Economic and Political News
Air India to hive off cargo business by April 1
Govt extends stock limit for sugar till September
Private equity firms set to raise $2 bn till June
FinMin not keen to allow banks to issue tax-free infrastructure bonds
MSME Min seeks Rs 5,500 cr
Corporate News
Siemens to invest Rs 1,600 cr in India
NTPC may miss FY2010 capacity addition target
ITC to open nine more Fortune hotels this year
Zylog acquires Canada-based Brainhunter for Rs 150 cr
BEL to get Rs 4,279 cr IAF order for Akash missiles

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