Sunday, March 14, 2010

Market Outlook---March 15, 2010


Dealer’s Diary
The market witnessed bouts of intraday volatility. Stocks pared gains soon after hitting 1-1/2 month highs at the onset of the trading session. The market regained strength in morning trade but trimmed gains in mid-morning trade. The key benchmark indices recovered from the day's lows and provisionally closed flat after moving between the positive and negative terrain throughout the day. Higher European stocks helped late recovery on the domestic bourses. But the market ended off the day's high as strong industrial production data for January 2010 reinforced expectations of a rate hike by the Reserve Bank of India. Industrial output was up by a robust 16.7% yoy in Jan 2010. IT, Realty and Banking stocks fell. The Sensex closed down by 0.01%, while the Nifty gained by 0.1%. The BSE Mid-cap and Small-cap indices also closed down by 0.2% and 0.4% respectively. Among the front-liners, Hindalco, Bharti Airtel, Tata Power, ITC and Mahindra and Mahindra were up by 1-3%, while HUL, Sun Pharma, RCom, BHEL and HDFC Bank were down by 1-4%. In the Mid-cap segment, Monnet Ispat, Novartis India, IBN18 Broadcast, Infotech Enterprises and Indusind Bank were up by 4-8%, while REI Six Ten Retail, Shree Renuka Sugars, M&M Financials, Bannariamman Sugars and Sobha Developer were down by 4-7%.
The trend deciding level for the day is 17179/5139 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17232–17297/5156–5175 levels. However, if NIFTY trades below 17179/5139 levels for the first half-an-hour of trade then it may correct up to 17114–17062/5120–5103 levels.
Economic and Political News
·         Forex reserves up at US$278.4bn
·         Manufacturing leads industrial output growth to 16.7%
Corporate News
·         NMDC FPO sails through; FIIs, retail stay away
·         Bharati Shipyard buys another 3% in Great Offshore
·         Triveni Engineering announces demerger of steam turbine biz
·         McNally Bharat bags Rs.245.4cr SAIL order

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