Sunday, March 7, 2010

Market Outlook---March 8, 2010

Dealer’s Diary
The key benchmark indices eked out marginal gains in what was a volatile trading session. The market opened on a firm note, tracking gains in Asian stocks. The market cut gains in early afternoon trade, after the government sought an additional spending plan for the current year. The market regained strength in mid-afternoon trade as world stocks rose. The market pared gains in late trade. The Sensex and the Nifty closed the trading session in the green with gains of 0.1% and 0.2%, respectively. The BSE Mid-cap and Small-cap indices outperformed the benchmark indices and closed in the green with gains of 0.6% and 0.8%, respectively. Among the front-liners, DLF, Hero Honda, Bharti Airtel, Sun Pharma and JP Associates were up by 1-4%, while Tata Motors, Wipro, BHEL, Hindalco and NTPC were down by 1-2%. In the mid-cap segment, Puravankara Projects, Pipava Shipyard, Firstsource Solutions, Petronet LNG and Prakash Industries were up by 6-12%, while Eicher Motors, Sterlite Technologies, Simplex Infrastructures, MRF and National Fertilizer were down by 3%.
The trend deciding level for the day is 17009/5092 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17083–17171/5116–5142 levels. However, if NIFTY trades below 17009/5092 levels for the first half-an-hour of trade then it may correct up to 16921–16848/5065–5041 levels.
Economic and Political News
• Govt. grants coal linkages to 11 new power units
• LIC aims 20% growth in investment
• Direct Tax Code draft in 3 months
Corporate News
• BSNL scraps US $10bn mega GSM tender
• Essar set to buy US co. Trinity coal for US $600mn
• Adani power shortlisted for Kosovo project

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