Market Outlook---June 25, 2010

Dealer’s Diary

The market edged higher in early trade, tracking firm Asian stocks. The market pared gains after hitting a fresh intraday high in early afternoon trade and slipped into the red in afternoon trade as European stocks declined. Immense volatility was witnessed in the last one hour of trade as traders rolled over positions in the derivatives segment as the near-month June 2010 derivatives contracts expired on June 24, 2010. US Federal Reserve's more downbeat language on US economic growth weighed on investor sentiments globally. The Sensex and Nifty closed down by 0.1% each. However, BSE mid-cap and smallcap indices closed up by 0.1% and 0.2%, respectively. Among the front-liners, HUL, L&T, Hero Honda, ITC and HDFC were up by 1–2%, while Reliance Infrastructure, ICICI Bank, Maruti Suzuki, TCS and Sterlite Industries were down by 1–2%. Among mid-caps, REI Six Ten, Hindustan Oil, TVS Motor, Godrej Properties and Godrej Industries were up by 7–12%, while MVL, Kwality Dairy, BGR Energy, Honeywell Auto and Patni Computer declined by 3–6%.

Markets Today

The trend deciding level for the day is 17736 / 5318 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17840 – 17949 / 5351 – 5382 levels. However, if NIFTY trades below 17736 / 5318 levels for the first half-an-hour of trade then it may correct up to 17627–17523 / 5287–5254 levels.

Economic and Political News

·         RBI permits zero-coupon NCDs

·         Top US senator to visit India to advance Indo-US ties

·         Oil extends losses on demand concerns

·         Govt. to release less sugar in open market during July

Corporate News

·         Petronet LNG may not buy spot LNG cargo till December

·         HCL Corp. has sold 2.5% stake in HCL Tech for Rs580cr

·         Alstom JV with BHEL, NPCIL to supply equipment for nuclear project

Shree Renuka Sugars to pay 25% less for Equipav