Thursday, April 8, 2010

Market Outlook---April 9, 2010

Dealer’s Diary

The key benchmark indices slumped as weak global stocks and worries about the economic health of Greece triggered profit taking after the recent sharp surge in share prices. A spike in food price inflation also rekindled fears of a hike in key policy rates when the Reserve Bank of India (RBI) reviews its monetary policy on April 20, 2010. The market breadth, indicating the overall health of the market, turned weak in contrast to a strong breadth earlier in the day. Metal stocks fell as metal prices fell on the LME. Rate sensitive auto and banking stocks also fell. Capital goods stocks also declined. The Sensex and Nifty were down by 1.4% and 1.3%, respectively, while the BSE Mid-cap and Small-cap indices were also down by 0.4% each. Among the front-liners, Infosys, DLF, Wipro and TCS were up by 0.1-0.5%, while Hindalco, HDFC, ICICI Bank, Tata Motors and Bharti Airtel were down by 2-4%. In the mid-cap segment, Blue Star, Phoenix Mills, Lakshmi Machine, Jai Corp and Bayer Cropscience were up by 4-8%, while Welspun Gujarat, Usha Martin, Apollo Tyres, IRB Infra and Prakash Industries were down by 3-5%.


The trend deciding level for the day is 17785/5326 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17890–18066/5362–5420 levels. However, if NIFTY trades below 17785/5326 levels for the first half-an-hour of trade then it may correct up to 17609–17503/5269–5233 levels.

Economic and Political News

Govt. clears Rs4,355cr highway projects
Govt. stubs out foreign investment in tobacco
Food Inflation rose 17.7% for the week ended Mar 27, 2010

Corporate News

IOC raises Rs1,350cr through sale of oil bonds in secondary market
Cipla makes cancer drug cheaper—rolls out Bayer’s cancer drug
Suzlon bags Italian firm's order for 18 wind turbines
GSPC inks pact with Egypt for oil & gas exploration

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