Tuesday, June 1, 2010

Market Outlook---June 2, 2010


Dealer’s Diary

The benchmark indices edged lower in opening trade, tracking weak Asian stocks. However, the market came off the lower level in mid-morning trade on strong macro economic data but weakened again with the Sensex hitting a fresh intraday low in early afternoon trade. In late trade, the market extended losses on weak global cues as the slowdown in Chinese manufacturing growth sharply pulled down world stocks. The market breadth was weak and the Nifty fell below the psychological 5,000 mark. The Sensex and Nifty closed with losses of 2.2% and 2.3%, respectively. BSE mid-cap and small-cap indices also closed lower by 1.3% and 1.0%, respectively. Among the front-liners, Maruti, Cipla and ACC were up by 0-2%, while Jaiprakash Associates, Sterlite, Hindalco, Tata Steel and RCom. were down by 4-6%. In the mid-cap segment, Hindusthan National Glass, JM Financial, Bank of Maharashtra, Chambal Fertiliser and Wockhardt were up by 5-14%, while Sobha Developers, Texmaco, REI Six Ten Retail, Fortis Health and Century Textiles were down by 5-7%.


The trend deciding level for the day is 16611/ 5006 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16904 – 17236/ 5051 – 5132 levels. However, if NIFTY trades below 16611/ 5006 levels for the first half-an-hour of trade then it may correct up to 16279 – 15987 / 4925 - 4880 levels.

Economic and Political News

·         Govt. hikes price of natural gas by more than double to US $4.20 per mmBtu
·         Govt. gets Rs67,719cr for 3G spectrum from 9 telcos
·         India's exports rose by over 36% in April 2010
Corporate News

·         ITC raises stake in Leela to 10%
·         R-Infra wins Rs2,960cr Delhi-Agra project from NHAI
·         Hero Honda raises bike prices by up to Rs1,000
·         SAIL cuts prices by up to Rs1,500/t

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