Monday, July 26, 2010

Market Outlook---July 27, 2010

Dealer’s Diary
The key benchmark indices suffered losses to hit fresh intraday lows as European stocks moved off highs as US index futures fell. The market hovered around the negative zone near the flat line in early trade, shedding initial gains. Stocks slided lower in morning trade and the market was range bound in early afternoon trade. The market hit a fresh intraday low in mid-afternoon trade and the trend prevailed in late trade. The Sensex and Nifty were down by 0.6% each. BSE mid-cap and small-cap indices also ended the trade in red, down by 1.0% and 0.8%, respectively. Among the front liners, Bharti Airtel, TCS, Infosys, HDFC Bank and ITC gained between 1–2%, while Maruti Suzuki, Hero Honda, Jaiprakash Associates, SBI and DLF lost between 3–12%. Among mid caps, Lakshmi Machines Works, MVL, IFCI, KGN Industries and S.Kumar Nation gained between 3–5%, while Indian Bank, United Breweries Holdings, REI Agro, Jubilant Foodworks and Whirlpool were down by 5–12%.

The trend deciding level for the day is 18069/5431 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18145–18270/5454– 5488 levels. However, if NIFTY trades below 18069/5431 levels for the first half-an-hour of trade then it may correct up to 17945 – 17869/5396 – 5374 levels.

Economic and Political News
• Investment norms for FDI-funded companies likely to be relaxed
• Japan to lend Rs88.5cr for Delhi-Mumbai corridor
• Moody’s upgrades India’s sovereign currency rating
Corporate News
• Fortis Healthcare divests entire stake in Parkway to Khazanah for S$3.95 per share
• Reliance Media World signs 5yr Delhi Metro Rail Corporation Mandate
• DLF to buy Dubai world in JV

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