Sunday, April 25, 2010

Market Outlook---April 26, 2010

Dealer’s Diary

The Indian markets opened strong in contrast to weak Asian markets and fall of European markets in the previous session post news of Greece’s worse than expected deficit. Volatility was evident as markets gave up early gains only to rise swiftly again by mid-session. Markets witnessed another sharp sell-off from day’s highs to touch intra-day lows. While buying resumed from lower levels in final session, markets stayed extremely choppy and closed with fair gains. The Sensex and Nifty closed with gains of 0.7% each. The BSE Mid-cap and Smallcap indices underperformed the benchmark index as they gained 0.3% and 0.5% respectively. Among the front-liners, ICICI Bank, Jaiprakash Associates, L&T, M&M, and DLF were up by 2-3%, while ACC, Bharti Airtel, Sun Pharma, Wipro and Hero Honda were down by 1-2%. In the Mid-cap segment, Sterlite Technologies, Religare Enterprises, State Bank of Jaipur, SKF India and HSBC Investdirect were up by 6-12%, while Indiabulls Financials, Shree Renuka Sugar, Shriram City, REI Six Ten and Triveni Engg were down by 3-4%.

Markets Today

The trend deciding level for the day is 17651/ 5295 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17769–17843/ 5320–5336 levels. However, if NIFTY trades below 17651/ 5295 levels for the first half-an-hour of trade then it may correct up to 17577–17459/ 5279–5254 levels.

Economic and Political News

• Govt. hike cane FRP by 7% to Rs139quintal
• Govt. to infuse Rs15,000cr in PSU banks in 2010-11
• Fin. Min. may block PSBs from teaser rate play
Corporate News

• NTPC plans to raise US$500mn through ECB
• IFC to invest US$60mn in Apollo Tyre
• EID Parry buys GMR’s agri-business arm

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