Tuesday, July 20, 2010

Market Outlook---July 21, 2010

Dealer’s Diary
The key benchmark indices jumped in early trade on firm Asian stocks, which rose following strong overnight US markets. Market breadth was strong as all BSE sectoral indices were in green, but key benchmark indices reversed the initial gains in the afternoon session as European stocks fell and US index futures tumbled. The Sensex finally closed below the psychological 18,000 mark after crossing that level in early trade. The Sensex and Nifty closed down by 0.3% each. BSE mid-cap and small-cap indices closed in line with the Sensex, down by 0.3% each. Among the front liners DLF, Sterlite, Wipro, L&T and TCS gained 0–2%, while Jaiprakash Associates, Tata Motors, RCOM, HDFC and ICICI lost 1–2%. Among mid-cap, Bayer Corp, Madras Cement, Himadri Chemicals, HCC and SKF India were up by 4–6%, while Shree Global Trade, Indian Metals & Ferro Alloys, Mindtree, Gee Kay Finance and BOC India declined by 4–6%.

The trend deciding level for the day is 17922 / 5379 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17996-18114/ 5405-5442 levels. However, if NIFTY trades below 17922 / 5379 levels for the first half-an-hour of trade then it may correct up to 17804-1773 / 5340-5317 levels.

Economic and Political News
• New WPI series to be used from August, says industry secretary
• ISMA expects sugar stocks to increase to 5.9mn tonnes in 2009–10
• Inflation to fall to 5–6% by December end, says government
• DTC, GST bills likely in monsoon session, says revenue secretary
• Bill to replace ULIP ordinance soon, says Ashok Chawla
Corporate News
• NHPC to sign three projects in Orissa within a month
• ADAG increases stake in Fame India to 15.88%
• Balrampur gets BIFR approval for merger with Indo Gulf sugar unit
• Dhanalakshmi Bank raises Rs380cr via QIP

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