Wednesday, May 12, 2010

Market Outlook---May 13, 2010

Dealer’s Diary

The key benchmark indices ended the trading session flat amid high volatility. The market opened firm, but slipped into the red in afternoon trade, weighed by data showing lower-than-expected growth in industrial production in March, 2010. Gains from Reliance Industries and positive cues from the European indices pulled the market into the green in mid-afternoon trade. However, a fall in US index futures saw the market pare its gains in the closing session of trade. The Sensex and Nifty ended the session almost flat, up by a marginal 0.3% and 0.4%, respectively. The BSE Mid-cap index was up by 0.1%, while the Small-cap index was down by 0.3%. Among the front-liners, ITC, Wipro, SBI, Tata Power and RIL were up by 1-2%, while Bharti Airtel, M&M, JP Associates, BHEL and ACC were the down by 1-8%. In the Mid-cap segment, Bajaj Finserv, Zuari Industries, Jubilant Organosys, Blue Star and Berger Paints were up by 4-8%, while Gee Kay Finance, Onmobile Global, Gammon India, Hindusthan Natural Glass and Gujarat NRE Coke were down by 4-6%.


The trend deciding level for the day is 17159/5143 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17290 – 17383/ 5187 – 5217 levels. However, if NIFTY trades below 17159/ 5143 levels for the first half-an-hour of trade then it may correct up to 17065 – 16934/ 5113 – 5069 levels.

Economic and Political News

• FM pegs 2010-11 GDP growth at 8.4%
• Capital flows pose risk, RBI says all options open
• Steel consumption up 9.6% in April
Corporate News

• Cadila Healthcare gets nod for H1N1 vaccine in India
• Educomp bags Rs50cr order from Bihar
• R power may build gas-fired plant in AP

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