Sunday, July 25, 2010

Market Outlook----July 26, 2010


Dealer’s Diary
The market opened quiet and rallied before coming off the day's high in afternoon trade, following a weak Europe opening. Profit taking emerged after the key benchmark indices hit their 29-month highs at the onset of the trading session. The market became volatile in afternoon trade after European indices opened low, ahead of the stress test results of 91 European banks. The market breath turned weak towards the end of the trade session in contrast to a strong breadth earlier in the day. The Sensex and Nifty closed by 0.1% each. BSE midcap and small-cap lost 0.3% and 0.5%, respectively. Among the front liners, Bharti Airtel, BHEL, ITC, Infosys and SBI gained between 1–4%, while Jaiprakash Associates, ONGC, DLF, NTPC and Sterlite Industries lost between 1–2%. Among mid caps, United Breweries, Alstom Projects, BF Utilities, Shriram City and UCO Bank were up by 5–14%, while ING Vysya Bank, Praj Industries, IFCI, Thermax and National Fertilizers were down by 4–6%.

The trend deciding level for the day is 18154 / 5454 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18214 – 18298 / 5473 – 5496 levels. However, if NIFTY trades below 18154 / 5454 levels for the first half-an-hour of trade then it may correct up to 18071 – 18011 / 5430 – 5412 levels.

Economic and Political News
·         Indian telecom user base up ~18mn in June 2010
·         SEZ units cannot avail IT exemption on DTA sale: MOC
·         Rs2,245cr FDI proposals approved
Corporate News
·         LSE approves de-admission of Gateway Distripark’s GDR from trading
·         RPG flagship eyes Rs2,000cr solar project in Rajasthan
·         SBI raises US $1bn in overseas bonds issue
·         Wockhardt gets US FDA approval for generic version of ToprolXL

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