Thursday, February 4, 2010

Market Outlook—February 5, 2010

Dealer’s Diary

A late sell-off in the index pivotals pulled the key benchmark indices to the day's low. The market drifted lower in early trade, tracking weak Asian stocks. However, after a strong intraday rebound in mid-morning trade, the market once again lost ground in early afternoon trade. Fresh selling in mid-afternoon trade pulled the benchmark indices to the day's low. The BSE Sensex and the NSE Nifty fell by 1.6% and 1.8%, respectively. The BSE Mid-cap and Small-cap indices lost 1.9% and 1.6%, respectively. Among the front-liners, ONGC, ITC and Hero Honda were up by 0-1%, while Hindalco, Jaiprakash Associates, Tata Motors, DLF and Tata Steel were down by 4-6%. In the mid cap segment, United Breweries, P&G, KGN, Info Edge India and Mcleod Russel were up by 4- 6%, while CMC, JP Hydro, Prakash Industries, Polaris Software and Kingfisher Airlines were down by 6-7%.

Markets Today
The trend deciding level for the day is 16307/4870 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16426–16627/4907–4969 levels. However, if NIFTY trades below 16307/4870 levels for the first half-an-hour of trade then it may correct up to16106–15988/4808–4771 levels.

Economic and Political News

FDI inflows rise 10% to $1.5bn in December
Central Registry on cards to prevent home loan frauds
DoT raises entry fee for ISP licence
Decision on Parikh Panel report likely before Budget: Government
Corporate News
Israel court bars Sun from hiking stake in Taro
DB Realty fixes issue price at Rs468
Dalmia Cement raises stake in OCL India to 45.4%
Kiri Dyes and Chemicals acquire Germany-based Dystar Group

No comments: