Tuesday, June 22, 2010

Market Outlook---June 23, 2010

Dealer’s Diary

The key benchmark indices slumped to fresh intraday lows in late trade as European stocks extended losses and US index futures turned negative. Reliance Industries edged lower in volatile trade, while metal, banking and IT stocks fell. The market dropped in early trade as most Asian stocks fell. It trimmed losses before weakening once again in morning trade. Intraday volatility was high as traders rolled over positions in the derivatives segment. Both the Sensex and Nifty closed down by 0.7% each. The BSE mid-cap index closed down by 0.02%, while the small-cap index closed up by 0.1%. Among the front-liners, HUL, ITC and Tata Power were up by 3–5%, while Sterlite Industries, ACC, Jaiprakash Associates, Jindal Steel and Tata Steel were down by 2–3%. Among the mid-caps, Sterlite Technologies, Karnataka Bank, Dishman Pharma, Essar Ship Ports and Geekay Finance were up by 5–8%, while Kwality Dairy, KGN Industries, Yes Bank, DB Corp. and HCL Infosystems declined by 3–5%.

The trend deciding level for the day is 17781 / 5327 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17837 – 17924 / 5344 – 5371 levels. However, if NIFTY trades below 17781 / 5327levels for the first half-an-hour of trade then it may correct up to 17694 – 17639/ 5300 – 5284 levels.

Economic and Political News
• Government to take up new SEZ requests on July 13
• Murli Deora hints at fuel price increase
• Auto, taxi fares up in Delhi; Mumbai may follow suit
Corporate News
• Reliance Industries to pay US $1.35bn for 45% stake in Pioneer field
• Tata Steel's Rs15-lakh-crore Jamshedpur expansion plan gets MoEF nod
• GVK's 800MW power project in AP to be built by Hyundai, L&T
• Sun settles patent row over Parkinson's drugs with Orion
• Steel Exchange to set up Rs315cr power plant

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