Monday, July 19, 2010

Market Outlook----July 20, 2010

Dealer’s Diary
The key benchmark indices opened on a negative note, tracking weak cues from global markets. However, the markets soon moved higher from lower levels on account of buying interest among PSU and banking stocks and positive sentiments from Chinese markets. The recovery was, however, shortlived and markets tumbled to trade in the negative zone. Markets became volatile and moved in a narrow band thereafter. Finally, markets reversed early trends and ended on a flat note. The Sensex and Nifty ended lower, down by 0.2% and 0.1%, respectively, while BSE mid-cap and small-cap indices outperformed the Sensex, closing up by 0.2% and 0.1%, respectively. Among the front liners, NTPC, Rel Comm., Hindalco, L&T and HDFC were up nearly by 1–3%, while ITC, Sterlite, DLF, Maruti and Hero Honda declined by 1–3%. Among mid-caps, Shree Global Trade, BF Utilities, United Brewries, Andhra Bank and Gujarat Fluo. were up by 6–20%, while Whirlpool, State Bank of Travancore, Gee Kay Fin., Zydus Wellness and Kirloskar Bros. were down by 3–5%.

Markets Today
The trend deciding level for the day is 17930/5386 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18004 – 18079/5410 – 5433 levels. However, if NIFTY trades below 17930/5386 levels for the first half-an-hour of trade then it may correct up to 17855 – 17781/5362 – 5338 levels.

Economic and Political News
• SEBI panel recommends raising open offer trigger to 25%
• Fuel consumption rises 1.7% to 12.09MT in June
• IMF to boost lending resources by US $250bn to US $1tn to prevent future crises
• Lending rates likely to go up after Sept: ICICI Bank
Corporate News
• ONGC submits viability report of 9 gas blocks to DGH
• BHEL bags Rs2,665cr order for Chhattisgarh thermal power plant
• Vardhaman Textiles to spin off steel business
• Nalco eyes Afghanistan's mining sector

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