Thursday, March 18, 2010

Market Outlook---March 19, 2010


Dealer’s Diary
The Sensex slipped into the red soon after initial gains, hitting a fresh day's low in mid-morning trade. The market recouped its entire losses later. The Sensex hit a fresh intraday low in afternoon trade as Asian stocks fell. The key benchmark indices surged to the day's highs at the fag end of trade after global rating agency Standard & Poor's (S&P) revised India's rating outlook to stable from negative. S&P affirmed the 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on India. Capital goods, FMCG stocks fell. Auto stocks were mixed. Banking and metal stocks rose. Stocks were volatile as traders rolled over positions in the derivatives segment from the March 2010 series to the April 2010 series, ahead of the expiry of the near-month March 2010 contracts on Thursday, 25 March 2010. Both the Sensex and Nifty gained 0.2% and 0.3%, respectively, while the BSE Mid-cap and Small-cap indices also gained 0.4% and 0.1%, respectively.

The trend deciding level for the day is 17495/5239 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17572–17626/5263–5280 levels. However, if NIFTY trades below 17495/5239 levels for the first half-an-hour of trade then it may correct up to 17442–17364/5222–5197 levels.

Economic and Political News
·         Govt. likely to infuse Rs9,500cr in banks in 1QFY2011
·         3G airwave race gathers pace, bids in April’10
·         Food inflation eases, headline index expected to rise
·         India to sign trademark protection treaty
·         Glenmark unit gets USFDA nod for hypertension drug
·         ArcelorMittal in stake buy talks with Bhushan Power
·         NTPC, IOC plan JV for biodiesel, lubricants

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