Monday, May 3, 2010

Market Outlook---May 4, 2010

Dealer’s Diary

The key benchmark indices ended a choppy trading session lower, halting a two-day advance, as weak global stocks weighed on investors' sentiment. High beta infrastructure stocks declined on selling pressure. Metal stocks declined, as copper prices fell on concerns that monetary tightening in China will crimp demand for the metal. But IT pivotals were off the day's low, on bargain hunting after an initial setback triggered by a fall in ADRs last Friday. Banking and financial shares declined on fears that the RBI may resort to further monetary tightening to counter the soaring inflation. Auto shares, however, survived the broader market decline, on robust sales figures in April 2010. The Sensex and Nifty closed down 1% each. The BSE Mid-cap and Small-cap indices closed lower by 0.4% each. Among the front-liners, Hero Honda, RCom, Maruti Suzuki, Wipro and TCS were up by 0.1-1%, while Reliance Infra, Hindalco, Sterlite, HUL and Tata Motors were down by 2-3%. In the mid-cap segment, HSBC InvestDirect, Tulip Telecom, Dish TV India, UCO Bank and Vijaya Bank were up by 4-15%, while South India Bank, Central Bank, Nagarjuna Constructions, Gujarat NRE Coke and BF Utilities were down by 4-12%.


The trend deciding level for the day is 17423 / 5237 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17500 – 17614 / 5264 – 5306 levels. However, if NIFTY trades below 17423 / 5237 levels for the first half-an-hour of trade then it may correct up to 17309 – 17232 / 5196 – 5169 levels.

Economic and Political News

• Govt. to chart two-year plan for financial inclusion
• Sebi asks rating agencies to disclose methodology, fees
• Tax holiday over, but Himachal investments continue
Corporate News

• Torrent power slashes fuel surcharge by 6 paise
• Glenmark, Sanofi in outlicensing deal
• Jaiprakash Associates' cement sales up 57% in April’2010

No comments: