Monday, June 7, 2010

Market Outlook---June 8, 2010

Dealer’s Diary

The benchmark indices witnessed a gap-down opening following cues from weak Asian and US markets last week. The markets traded in a narrow range for most part of the morning session. However, mild recovery ensued in early afternoon trade on reports that monsoon has arrived after being stalled by a cyclone last week. The market extended gains led by banking stocks along with recovery in European stocks and positive US futures. The Sensex and Nifty ended the day with losses of 2.0% each. Mid-cap and small-cap indices outperformed the Sensex and closed lower by 1.4% and 1.5%, respectively. Among the front-liners, Reliance Communication, ACC and Hero Honda were up by 0–5%, while DLF, Hindalco, Tata Steel, Tata Motors and Sterlite were down by 4–6%. In the mid-cap segment, REI Agro, Astrazeneca, BOC India, Gillette and Alfa Laval were up by 6–15%, while Rajesh Exports, Mcleod Russel, JM Financial, Whirlpool and Usha Martin were down by 5–6%.

Markets Today

The trend deciding level for the day is 16846 / 5057 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17005 – 17229 / 5110 – 5186 levels. However, if NIFTY trades below 16846 / 5057 levels for the first half-an-hour of trade then it may correct up to 16622 – 16463 / 4981 – 4928 levels.

Economic and Political News

• Govt. sets up Technical Advisory Group to reform tax structure
• GST bill to come up in monsoon session: Asim Dasgupta
• Govt. proposes windfall (bumper profits) tax on iron ore miners
Corporate News

• KSK Energy Ventures inks PPA With Gujarat Urja Vikas Nigam Ltd.
• IL&FS Transport JV achieves financial closure for Gurgaon metro
• Neyveli Lignite commissions lignite-based power plant at Rajasthan
• ARSS Infra bags Rs415.6mn order from Northeast Frontier Railway, Guwahati

No comments: