Thursday, June 17, 2010

Market Outlook --- June 18, 2010

Dealer’s Diary




The market opened flat and traded volatile through the entire session on Thursday. The key benchmark indices propelled to new one- and a- half month highs in late trades, as worries about Euro-zone sovereign debt retreated after a largely successful Spanish bond auction. All sectoral indices ended in the green. The Sensex and Nifty closed with gains of 0.9% and 0.8%, respectively. However, the BSE Mid and Small-cap indices underperformed the benchmark indices ending with gains of 0.4% and 0.6%, respectively. Among the frontliners, L&T, Tata Motors, Jaiprakash Associates, RCom and Jindal Steel were up by 2–3%, while Hero Honda, HUL, Tata Steel, SBI and BHEL ended 0–1% lower. Among the Mid-caps, Lakshmi Mach, Indraprastha Gas, Gujarat NRE Coke, Indiabulls Finance, and Gee Kay Finance were up by 5–11%, while Religare Enterprises, Kwality Dairy, Sadbhav Engineering, Anant Raj Industries and Monsanto India declined by 4–7%.



Markets Today

The trend deciding level for the day is 17553/5256 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17711– 7806/ 5305 – 5335 levels. However, if NIFTY trades below 17553/ 5256 levels for the first half-an-hour of trade then it may correct up to 17459–17300/ 5226 - 5177 levels.



Economic and Political News

• GDP likely to grow 9.2% this fiscal: CMIE

• Food inflation eases to 16.12% in early June

• RBI, Rangarajan talk of freeing interest rates

Corporate News

• Reliance industries may acquire 26% stake in Pipavav Shipyard

• Religare to buy boutique AMCs in US and merge the corpus to reach US $40bn

• Mindtree bags UID deal to develop applications

No comments: