Sunday, June 27, 2010

Market Outlook---June 28, 2010

Dealer’s Diary

The markets opened flat with a negative bias and continued to trade lower on weak Asian cues. Later the markets slipped further on back of high selling pressure as investors awaited the outcome of the EGoM meeting on freeing of fuel prices. However, the domestic market managed to recover from the day’s low in early afternoon trade before a significant decline in the last session as the government gave its approval for deregulating fuel prices. Finally, Sensex and Nifty closed down by 0.9% and 1.0%, respectively. However, BSE mid-cap and small-cap indices performed relatively better and were down by 0.7% and 0.5%, respectively. Among the front-liners, ONGC, RCOM, Cipla, RIL and Maruti were up by 1–6%, while Sterlite Ind., ICICI Bank, M&M, Wipro and HDFC Bank were down by 2–3%. Among mid-caps, MVL, GTL Infra, Astrazeneca Pharma, Alstom Projects and Gee Kay Finance were up by 4–8%, while KGN Ind., Berger Paints, Andrew Yule, Karnataka Bank and Dishman Pharma declined by 3–6%.


The trend deciding level for the day is 17612 / 5283 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17677 – 17780 / 5306 – 5344 levels. However, if NIFTY trades below 17612 / 5283 levels for the first half-an-hour of trade then it may correct up to 17509 – 17444 / 5246 – 5223 levels.

Economic and Political News

• IMD revises monsoon forecast to 102% of LPA
• Govt. pumps Rs31.2bn capital in IDBI Bank
• Govt. to revise tax information exchange treaty with 65 countries
Corporate News

• M&M plans to invest Rs250cr in aerospace business
• Essar Oil gets 4 coal bed methane blocks
• Zenith Birla announces bonus shares
• MMTC invites bids to import 6,000 tonnes of edible oil

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