Thursday, May 13, 2010

Market Outlook---May 14, 2010


Dealer’s Diary

The key benchmark indices opened well in the green, in line with early Asian indices and overnight US markets, which closed with strong gains. Volatility was high, as the markets witnessed a sharp rise and fall, with intermittent swings. After trading in a narrow range in the early session, the markets witnessed strong buying, which took them to the day’s highs. However, a sharp sell-off took the markets to the days’ lows in the end-session. A minor pullback enabled the markets to close above the days’ lows, but way below their highs for the day. The Sensex and Nifty ended the session with gains of 0.4% each. The BSE Mid-cap and Small-cap indices gained 1.2% and 1.0%, respectively. Among the front-liners, Tata Motors, M&M, DLF, Reliance Infra and JP Associates were up by 2-4%, while Tata Steel, Bharti Airtel, RIL, Wipro and Hindalco were down by 0-2%. In the Mid-cap segment, Godrej Consumer, Bajaj Finserv, Coromandel Intl, Hindusthan National Glass and Bajaj Holdings were up by 8-14%, while Gee Kay Finance, Onmobile Global, Allahabad Bank, Texmaco and Dalmia Cement were down by 3-10%.

Markets Today

The trend deciding level for the day is 17294 / 5180 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17348 – 17443 / 5212 – 5245 levels. However, if NIFTY trades below 17294 / 5180 levels for the first half-an-hour of trade then it may correct up to 17199 – 17145 / 5147 – 5115 levels.

Economic and Political News

·         Govt. lays ground for US $11bn push to infrastructure
·         Oversight body to plug breaches in FDI
·         Sino-Indian trade to touch US $60bn by December
Corporate News

·         OVL, IOC and OIL sign agreement for Venezuelan oilfield
·         Aban Offshore’s gas platform (Pearl), sank off Venezuelan coast
·         Gujarat NRE Coke to invest Rs1,000cr in AP plant

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