Tuesday, May 11, 2010

Market Outlook---May 12, 2010


Dealer’s Diary

The markets cooled off after strong run-up in the previous session. The markets opened in green, touching its intra-day high, in line with strong gains of US and few Asian markets. However, the indices slipped within moments of opening and slipped in the red. Except for a minor attempt of pull-back in the
mid-session, markets remained weak for the day. All the sectoral indices on the BSE closed in the red. The Sensex and Nifty closed lower by 1.1% each. The BSE Mid-cap and the Small-cap indices too closed lower by 1.0% each, indicating a market wide weakness. Among the front-liners, M&M, HDFC Bank, and Hero Honda were up by 0-2%, while Reliance Infra, Reliance Comm, Tata Steel, Hindalco and Bharti Airtel were down by 3-5%. In the mid-cap segment, National Fertilizers, Sobha Developers, Essar Ship Ports, RCF and Petronet LNG were up by 4-12%, while Piramal Health, Bajaj Hindustan, Gee Kay Finance,
Shree renuka Sugar and Jindal Saw were down by 4-7%.


The trend deciding level for the day is 17208 / 5156 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17312-17483 / 5186 - 5237 levels. However, if NIFTY trades below 17208 / 515 levels for the first half-an-hour of trade then it may correct
up to 17038 - 16934 / 5106 – 5076 levels.

Economic and Political News

·         Growing small cities to keep inflation high in FY11: Goldman
·         3G auction & proposed changes in 2G spectrum pricing to fetch Rs90,000cr
·         Punjab & Haryana seek higher MSP for Paddy

Corporate News

·         Bajaj Hind to transfer thermal power project to subsidiary
·         DLF pulls out of Chennai IT SEZ, seeks Rs700cr refund
·         GSPC to merge two of its gas distribution units

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