Market Outlook

Dealer’s Diary

The market opened on a weak note, tracking lower Asian stocks and extended losses in mid-morning trade as RIL’s stock fell on the news of its acquisition of stake in EIH Ltd. Further, weak global stocks offset data showing robust GDP growth of 8.8% in 1QFY2011. However, the market staged a mild recovery after sliding to a fresh intraday low in afternoon trade. The intraday recovery gathered steam in mid-afternoon trade as European stocks and US index futures came off initial lows. High volatility was witnessed in late trade. The Sensex and Nifty closed down by 0.3% and 0.2%, respectively. The BSE mid-cap and the small-cap indices closed lower by 0.6% and 1%, respectively. Among the front liners, M&M, ITC, Maruti Suzuki, Tata Motors and Bharti Airtel gained 1–3%, while RCOM, Jaiprakash Associates, RIL, Jindal Steel and DLF lost 2–4%. Among mid caps, United Breweries, Emami, Radico Khaitan, KGN Industries and Marico gained 4–9%, while EIH, State Bank of Mysore, Rajesh Exports, State Bank of Travancore and State Bank of Bikaner & Jaipur lost 5–7%.

Markets Today

The trend deciding level for the day is 17936 / 5388 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18051 – 18131 / 5428 - 5453 levels. However, if NIFTY trades below 17936 / 5388 levels for the first half-an-hour of trade then it may correct up to 17856 – 17740 / 5363 - 5323 levels.

Economic and Political News

·         Government expects GDP growth to be more than the projected 8.5% in FY2011

·         Mines Ministry seeks cabinet nod for BGML revival through Nalco

·         Maharashtra ethanol makers to keep 50% alcohol for petrol blending

·         Cement firms cut prices by Rs2–4/bag

Corporate News

·         M&M terminates contract with US distributor for pick-ups

·         Royal Orchid to increase room tariff from October 2010

·         Tata Communications signs two-year deal with Malaysia-based Axiata

Market Outlook---August 31, 2010

Dealer’s Diary
Volatility was the order of the day as the market swung between gains and losses after the government tabled the much-awaited Direct Taxes Code bill in the Lok Sabha. The market surged in early trade, tracking gains in Asian stocks and gained strength in mid-morning trade. However, it came off the lower level in afternoon trade and regained the positive zone after turning negative for a brief period in mid-afternoon trade. Immense volatility was witnessed in the last one hour of trade as the Sensex alternatively swung between gains and losses. The Sensex and Nifty closed up by 0.2% and 0.1%, respectively. BSE mid-cap index closed up by 0.1%, while the small-cap index closed down by 0.1%. Among the front liners, Tata Steel, Bharti Airtel, ONGC, Hindalco Industries and Reliance Infrastructure gained 2–3%, while ITC, BHEL, TCS, L&T and Infosys lost 0–1%. Among mid caps, EIH, KGN Industries, Pipavav Shipyard, Baja Electricals and Aurobindo Pharma gained 4–11%, while Pfizer, HCL Infosystems, FDC, MVL and State Bank of Travancore lost 3–4%.

Markets Today

The trend deciding level for the day is 18070 / 5425 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18179 – 18326 / 5460 - 5504 levels. However, if NIFTY trades below 18070 / 5425 levels for the first half-an-hour of trade then it may correct up to 17923 – 17813 / 5381 - 5346 levels.

Economic and Political News
• Government approves 1000MW grid-connected solar power projects
• India largest recipient of World Bank loans in 2009–10
• MoEF expands terms of reference of Posco committee

Corporate News

• PNB raises fixed deposit rate by 25bp
• RCOM has appointed Prashant Gokarn as the head for its 3G business operations
• EdServ to raise Rs12cr via warrants issue
• ACIL enters into contract farming for 173 acres in Gujarat
• Mundra Port begins operations at Gujarat terminal

Market Outlook ---- August 30, 2010

Dealer’s Diary

The key benchmark indices slumped on worries over the pace of the US economy’s recovery. IT stocks fell after the Union Cabinet approved the new Direct Taxes Code bill, wherein it proposed a hike in MAT on book profits to 20% from the prevailing 18%. The market recovered from the lower level at the onset of the trading session. The intraday recovery gathered strength in morning trade as Asian stocks came off lows, led by recovery in Japanese shares. The market extended losses to hit fresh intraday lows in mid-afternoon trade as European stocks extended initial losses and slumped in late trade. The Sensex and Nifty closed down 1.3% each, while the BSE mid-cap and small-cap indices closed lower by 1% and 1.3%, respectively. Among the front liners, ONGC, Tata Steel, RCOM and ACC gained 0–3%, while DLF, Hero Honda, ICICI Bank, Tata Power and JP Associates lost 2–3%. Among mid caps, FDC, Ispat Ind., Eicher Motors, Havells and Escorts gained 3–11%, while J&K Bank, Jubilant Food., Great Offshore, Puravankara and MVL declined 5–7%.

Markets Today

The trend deciding level for the day is 18064 / 5432 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18183 – 18368 / 5472 - 5535 levels. However, if NIFTY trades below 18064 / 5432 levels for the first half an hour of trade then it may correct up to 17879 – 17759/5369 –  5329 levels.

Economic and Political News

·         Core infrastructure industries output up 3.9% in July 2010

·         Auto component industry to touch US $110bn by 2020: ACMA

·         Gujarat Government has earmarked Rs350cr for infra, tourism development

Corporate News

·         Jindal Power's Rs13,000cr project gets initial 'Green' nod

·         PFC to divest up to 20% through public issue: Government

·         TCS signs Rs130cr e-governance contract with Madhya Pradesh

Market Outlook --- August 27, 2010

Dealer’s Diary
The benchmark indices opened in the green amidst positive trend across Asian markets and overnight gains in US markets. The markets continued to trade in the positive zone in the morning trade, thereafter, as FMCG and banking stocks witnessed strong buying momentum. However, indices remained range bound at the onset of the afternoon trade, but soon extended morning gains following firm opening of the European markets. A sharp slide was witnessed in late afternoon trade as markets turned volatile and traded in the red ahead of the expiry of August futures. Finally, markets closed marginally higher with the Sensex and Nifty closing up 0.3% each. BSE mid-cap ended lower by 0.1%, while BSE small-cap was up 0.1%. Among the front liners, NTPC, DLF, ITC, SBI and HDFC gained 1-3%, while RCOM, Sterlite, RIL, HUL and JP Associates lost 0-3%. Among mid caps, Eicher Motors, Essar Shipping, Indusind Bank, Astrazeneca Pharma and FDC gained 3-14%, while State Bank of Mysore, State Bank of Travanacore, State Bank of Bikaner and Jaipur, MVL and Wockhardt declined 4-10%.

Markets Today
The trend deciding level for the day is 18216 / 5473 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18272 – 18317 / 5491 - 5505 levels. However, if NIFTY trades below 18216 / 5473 levels for the first half-an-hour of trade then it may correct up to 18170 – 18114 / 5460 - 5441 levels.

Economic and Political News
• Direct tax provisions cleared by Union Cabinet
• Commerce Ministry turns down rubber import duty cut
• Natural gas availability in India to increase by 52% by 2013-14
• Investment in real estate to touch US $300bn in 2010
• Food inflation eases to 10.05%
• Monsoon rains 29% above normal in the past week
• Government to soon notify fuel efficiency standards

Corporate News

• Tata Motors to raise up to Rs4,700cr: CEO
• ONGC to start gas production from KG Basin block in 2016-17
• Sona Koyo plans Rs80cr expansion by January 2011

Market Outlook----August 26, 2010

Dealer’s Diary

The markets edged lower at the onset of the trading session, following weak cues from the Asian markets. The Sensex hit a fresh intraday low in morning trade as the market extended initial losses. A strong intraday rebound was witnessed in afternoon trade as European indices opened in the green; however, the markets came off the higher levels later. A sharp slide in late trade pushed the key benchmark indices to the day's lows at the fag end of the trading session. The Sensex closed down by 0.7% and the Nifty closed down by 0.8%. BSE mid-cap and BSE small-cap also witnessed declines and closed down by 1.5% and 1.4%, respectively. Among the front liners, Sterlite Industries, ONGC, ITC, TCS and Infosys gained 0–1%, while DLF, Tata Steel, Hindalco, Cipla and Hero Honda lost 2–4%. Among mid caps, FDC, Ruchi Soya, Brigade Enterprises, Oriental Bank of Commerce and BASF India gained 2–7%, while BF Utilities, State Bank of Travancore, EIH, State Bank of Bikaner and Jaipur and IBN18 Broadcast declined 6–10%.

Markets Today

The trend deciding level for the day is 18216 / 5574 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18276 – 18372 / 5495 – 5527 levels. However, if NIFTY trades below 18216 / 5574 levels for the first half-an-hour of trade then it may correct up to 18120 – 18060 / 5441 - 5420 levels.

Economic and Political News

·         India to speed up trade talks with EU, Japan and Malaysia

·         Rs50,000cr infrastructure fund to be set up by early next fiscal: Montek Singh Ahluwalia

·         State firms not to counterbid for Cairn: Oil Ministry

·         Inflation a major concern: RBI

Corporate News

·         State Bank of Mysore to come with rights issue at Rs540/share with 3:10 ratio

·         Cummins India plans Rs750cr ramp-up

·         Mahindra & Mahindra to complete Ssangyong acquisition in 4 months

·         Religare promoters make 20% open offer in the firm at Rs457/share

·         Royalty rates on radio to shift to revenue sharing from fixed fee regime

·         Piramal Healthcare plans to sell Thane land: Reports

Market Outlook----August 24, 2010

Dealer’s Diary
The key indices opened positive but soon turned volatile and lost ground. However, the Sensex regained its positive zone in morning trade and continued to move in a narrow range thereafter. Fresh buying in select pivotals pushed the market to the day's high in early afternoon trade. The market once again slipped into the red in afternoon trade. The Sensex regained the positive zone later, but slipped into red at the fag end of the trading session before closing marginally positive. The Sensex closed with marginal gains of less than 0.1% and Nifty closed with gains of 0.2%. While BSE mid-cap gained 0.8%, BSE small-cap closed with gains of 0.9%. Among the front liners, JSPL, Cipla, Bharti Airtel, ONGC and ICICI Bank gained 2-3%, while Reliance Infra, ITC, Jaiprakash Associates, HDFC and HDFC Bank lost 1-2%. Among mid caps, State Bank of Mysore, State Bank of Bikaner and Jaipur, State Bank of Travancore, Radico Khaitan and Videocon Ind. gained 9-20%, while Sigrun Holdings, Shriram City Union, Shree Cement, Karnataka Bank and FDC declined 3-5%.

Markets Today
The trend deciding level for the day is 18412 / 5538 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18452 – 18495 / 5556 - 5568 levels. However, if NIFTY trades below 18412 / 5538 levels for the first half-an-hour of trade then it may correct up to 18369 – 18328 / 5525 - 5507 levels.

Economic and Political News
• Government extends sops to exporters
• Government confident of US $200bn exports in FY11
• Government extends DEPB policy by six months

Corporate News

• PSU oil companies could make counterbid for Cairn
• Adani Power to expand capacity to 16,000 MW by 2014
• M&M signs MoU to buy stake in Ssangyong
• Trent plans to invest Rs275cr in Star Bazaar over next three years
• ARSS Infra bags Rs103cr order from National Highways, Orissa
• Jubilant Organosys signs US $51mn CRAMS contract

Market Outlook ---- August 23, 2010

Dealer’s Diary

A bout of volatility was witnessed at the onset of the trading session as the key benchmark indices cut losses, soon after an initial slide. However, the intra-day recovery proved short-lived as the Sensex once again lost ground in morning trade, tracking weak Asian stocks. The market once again came off the lows in mid-morning trade as index heavyweight RIL bounced back. The market soon slipped into the red. Stocks moved in a narrow range in afternoon trade. The market remained subdued in mid-afternoon trade as European stocks reversed initial gains. Weakness persisted on the bourses in late trade. The Sensex and Nifty closed down by 0.3% and 0.2%, respectively. While, the BSE mid-cap index declined 0.1%, BSE small-cap index closed with gains of 0.1%. Among the front liners, DLF, L&T, Cipla, RIL and Hero Honda gained 1–4%, while Tata Motors, ICICI Bank, Wipro, HUL and ITC lost 1–3%. Among mid caps, Wockhardt, Jubilant Foodworks, BF Utilities, Gammon India and Brigade Enterprises gained 7–10%, while Chennai Petro, MVL, GSFC, HCC and Hindustan Oil declined by 4–7%.

Markets Today

The trend deciding level for the day is 18409 / 5530 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18457 – 18512 / 5547 – 5563 levels. However, if NIFTY trades below 18409 / 5530 levels for the first half-an-hour of trade then it may correct up to 18354 – 18306 / 5514 – 5497 levels.

Economic and Political News

·         GST set to miss April 2011 deadline as the bill will not be introduced in the parliament

·         DTC may moderate tax rates: CBDT Chairman

·         Orissa to move apex court over POSCO project

·         Apparel exporters ask government to provide more sops in FTP

·         Forex reserves down by US $4.6bn to US $282.8bn for the week ending August 13

·         FICCI demands additional duty sops for steel exports

Corporate News

·         JSPL resumes implementation of steel and iron ore mine project in Bolivia

·         BPCL buys stake in Australian shale gas fields

·         Tata Steel to invest Rs1,000cr in Orissa plants

·         Cairn-Vedanta deal may not get ministry’s approval

Market Outlook ---- August 20, 2010

Dealer’s Diary
The markets opened on a firm note, with the key benchmark indices hitting 2.5 year highs. Stocks extended gains in morning trades on firm Asian equities. The market ruled positive in early afternoon trades after the latest data showed that the pace of rise in inflation slowed early this month. However, in mid afternoon trades markets pared gains as the European stocks slipped into the red, soon after a firm opening. Frenzied buying in index pivotals saw the key benchmark indices hitting fresh highs. Stocks ended positive with the Sensex and Nifty closing with gains of 1.1% each. The BSE mid-and small-call indices closed with gains of 0.9% and 0.8%, respectively. Among the front-liners, ACC, ICICI, HDFC, JP Associates and Jindal Steel gained 2–5%, while ONGC, Tata Power, Tata Motors, Bharti Airtel and SBI lost 0–1%. Among the mid-caps, Wockhardt, MVL, Thomas Cook, Petronet LNG and Ruchi Soya gained 8–20%, while Shriram City Union Finance, Torrent Pharma, BF Utilities, Motherson Sumi and Nava Bharat Ventures declined by 3%.

Markets Today
The trend deciding level for the day is 18402/5521 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18528–18601/5564–5588 levels. However, if NIFTY trades below 18402/5521levels for the first half-an-hour of trade then it may correct up to 18329–18203/5497–5454 levels.

Economic and Political News
• World Bank approves loan of US $430mn for Mumbai Urban Transport Project
• Cheaper potato, onions pull down food inflation to 10.35%
• NTPC, Powergrid pull out of CWG sponsorship
Corporate News
• ADAG gets nod for exploration of Coal-Bed Methane in Madhya Pradesh
• Royal Orchid hotels plans to raise Rs150cr
• ONGC may have to pay US $13bn for Rajasthan block

Market Outlook ---- August 19, 2010

Dealer’s Diary

The benchmark indices opened flat in early morning trades and remained range bound through the morning session. The Sensex gained towards late morning trades and ruled positive through the post noon session. Towards close, markets surged as buying was witnessed in the IT, auto, metal and banking counters. The Sensex and Nifty ended with gains of 1.2% each. The BSE mid- and small-cap indices closed 0.9% and 0.7% higher, respectively. Among the front-liners, Hindalco, Tata Motors, HDFC, HDFC Bank and ONGC gained 2–5%, while RCOM, RIL, M&M, Cipla and NTPC lost 0–1%. Among the mid caps, Gujarat Narmada Valley, State Bank of Mysore, GSFC and State Bank of Travancore gained 7–9%, while Thomas Cook, Simplex Infra and Edelweiss Cap declined 4–5%.

Markets Today

The trend deciding level for the day is 18204/5461 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18340–18422/5506–5533 levels. However, if NIFTY trades below 18204/5461 levels for the first half-an-hour of trade then it may correct up to 18121–17985/5435–5390 levels.

Economic and Political News

·         RBI likely to hike policy rates in Sept review says D&B

·         Sebi proposes to double retail investment limit to Rs2lakh

·         More pension, insurance funds needed in infra: Mukherjee

Corporate News

·         ADAG eyes 26% stake in ICEX

·         Blackstone to invest $300 mn in Moser Baer Projects

·         Future Ventures files draft prospectus for Rs750cr IPO

Market Outlook----August 16, 2010

Dealer’s Diary
The market opened on a firm note after a strong debut of Indian travel agency MakeMyTrip on the NASDAQ on Thursday, August 12, 2010. Stocks extended gains as the BSE Sensex hit a fresh intraday high in early afternoon trade. The market came off the higher level, soon after hitting a fresh intraday high in afternoon trade. It further trimmed gains in mid-afternoon trade as index heavyweight Reliance Industries pared gains. The market came off the lower level in late trade. The Sensex and Nifty closed up by 0.5% and 0.7%, respectively. BSE mid-cap and small-cap indices gained marginally by 1.0% and 0.7%, respectively. Among the front liners, SBI, DLF, ITC, Maruti and Jaiprakash Associates gained 1–2%%, while Sterlite, RCOM, Reliance Infrastructure, M&M and Tata Motors declined by 1–4%. Among mid caps, Bombay Dyeing, Jet Air, Info Edge India, Patni Computer and Jai Corp. gained 8–12%, while KGN Industries, Essar Shipping, Edelweiss Cap, Indiabulls Power and Simplex lost 3–12%.

Markets Today
The trend deciding level for the day is 18159/5448 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18268–18369/5481–5509 levels. However, if NIFTY trades below 18159/5448 levels for the first half-an-hour of trade then it may correct up to 18058–17949/5420–5387 levels.

Economic and Political News
• Coal blocks to private firms through auction; Bill moved in RS
• Liquidity condition in economy easing says Government
• Over Rs12k cr of tax demands locked in court disputes says Pranab
Corporate News
• FIPB clears KKR's investment proposal in Dalmia Cement
• Food processing sector needs Rs1lakh cr investment in 5 yrs: MFPI
• NMDC buys land for Rs14,000cr Chhattisgarh steel project

Market Outlook ---- August 12, 2010

Dealer’s Diary

The key benchmark indices edged higher in the morning trade, driven by a solid surge in Tata Motors, triggered by its turnaround 1QFY2011 results. However, indices reversed initial gains on weak Asian stocks and as US index futures declined. Markets continued to decline on negative cues from Asia and Europe. Finally, the key benchmark indices slumped in late trade as US index futures tumbled as investors fretted about the pace and sustainability of the global economic recovery, with the Sensex and Nifty closing down by 0.8% and 0.7%, respectively. BSE mid-cap and small-cap indices closed down by 0.5% each. Among the front liners, Tata Motors, Jindal Steel, Tata Power, Hindalco and HUL gained 1–5%, while Tata Steel, HDFC, Wipro, Mahindra & Mahindra and ICICI Bank declined by 2–3%. Among mid caps, Tata Investment, United Breweries, Anant Raj Ind., Bajaj FinServ and Essar Shipping grew 5–11%, while Educomp, IVRCL Infra, Hathway Cables, Sigrun Holdings and Jubilant Foods lost 5–10%.

Markets Today

The trend deciding level for the day is 18126/5436 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18208–18347/5459–5498 levels. However, if NIFTY trades below 18126/5436 levels for the first half-an-hour of trade then it may correct up to 17987–17905/5397–5373 levels.

Economic and Political News

·         Centre to take up request for new SEZs on September 16

·         Government sanctions Rs4,764cr more for submarine project

·         Cement exports dip 29% at 2.3mn tonnes in 2009–10

·         Parliament allows Rs68,000cr extra spend on oil subsidy and social sector

Corporate News

·         Era Infra achieves financial closure of Rs1,100cr road project

·         IDFC raises Rs3,500cr via QIP, Preference issue

·         Ashok Leyland wins order worth US $26mn for 1,000 buses

Market Outlook---August 11, 2010

Dealer’s Diary
The key benchmark indices opened on a tentative note and had an indecisive morning session due to the softness on the Chinese bourses and other Asian peers. Indices hit fresh intraday lows in early afternoon trade, as Asian stocks fell led by a steep slide in Chinese equities. Selling pressure intensified in afternoon trade as European stocks dropped in early trade as well. To close with, benchmark indices ended in the negative terrain due to lack of buying activity at higher levels, with the Sensex and Nifty closing down by 0.4% and 0.5%, respectively. BSE mid-cap and small-cap indices closed down by 0.5% and 0.4%, respectively. Among the front liners, Tata Motors, JP Associates, HUL, L&T and ICICI gained 1–4%, while Sterlite Industries, Wipro, Hindalco, TCS and Mahindra & Mahindra declined by 1–2%. Among mid caps, Prism Cement, Zydus Wellness, Indiabulls Real Estate, Educomp and Berger Paints grew 5–7%, while Jai Corp, Motherson Sumi, Sigrun Holdings, HT Media and Britannia Industries lost 4–6%.

Markets Today

The trend deciding level for the day is 18228/5466 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18285–18351/5486–5512 levels. However, if NIFTY trades below 18228/5466 levels for the first half-an-hour of trade then it may correct up to 18163–18105/5440–5420 levels.

Economic and Political News
• High Court asks SEBI to decide on MCX-SX plea by September 30
• Rajasthan government to take a 26% stake in ONGC’s Barmer refinery
• 18 foreign banks apply for branches, representative offices: Jr. Fin. Min. NN Meena
Corporate News
• M&M, Ruia submit bids for Ssangyong
• Uttam Galva increases prices by Rs500 a tonne
• GMR Infra gets US $1bn offer for InterGen stake

Market Outlook----August 10, 2010

Dealer’s Diary

The key benchmark indices opened on a tentative note, given the mixed signals from the Asian markets in opening trades, but indices extended gains during mid-morning trade. The market held firm in early afternoon trade. Momentum picked up with the positive opening of Europe. Finally in the afternoon session, markets extended gains in late trade due to a positive set of cues from the global front, with the Sensex and Nifty closing up by 0.8% and 0.9%, respectively. BSE mid-cap and small-cap indices performed better, closing up by 1.2% and 1.4%, respectively. Among the front liners, DLF, ICICI, Tata Motors, RCOM and ACC gained between 2-4%, while HDFC Bank, RIL and Cipla declined 0-1%. Among mid caps, Jubiliant FoodWorks, Essar Shipping, Anant Raj, Shobha Developers and Onmobile Global grew 9-12%, while KGN Industries, Britannia, Shree Global Traders, Atlas Copco and Jagran Prakashan lost 2-16%.

Markets Today

The trend deciding level for the day is 18246/547 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18351–18415/5508–5530 levels. However, if NIFTY trades below 18246/5471 levels for the first half-an-hour of trade then it may correct up to 18182–18076/5449–5412 levels.

Economic and Political News

·         Cost of 268 projects overshoots Rs50,000cr due to delay: Govt

·         FM not averse to more fiscal, monetary steps to ease inflation

·         Home Ministry asks DoT to stop all 3G services

Corporate News

·         Lupin sues Ranbaxy in US for patent infringement

·         BHEL secures Rs2,525cr order from Abhijeet Infra

·         Pride Hotels to invest Rs1,000cr for expansion

·         SAIL commissions Rs39cr unit at Salem

Market Outlook ---- August 8, 2010

Dealer’s Diary
The key benchmark indices opened marginally higher in the morning trade. Indices hit fresh intraday highs in early afternoon trade as Asian stocks and US index futures rose and the RBI’s deputy governor Subir Gokarn said that the RBI has taken adequate measures to manage inflation and expects food inflation to ease on good monsoon rains. However, in the afternoon session, indices reversed initial gains as profit booking in the last leg of the trade dragged markets into the red zone with the Sensex and Nifty closing down by 0.2% and 0.1%, respectively. BSE mid-cap and small-cap indices performed better, closing up by 0.2% each. Among the front liners, Tata Motors, ITC, HDFC, Jindal Steel & Power and ACC gained between 1–4%, while Hero Honda, Tata Steel, TCS, DLF and SBI declined 0–1%. Among mid caps, Edelweiss, Den Network, Shree Global TradeFin, Hathway Cable and Atlas Copco grew 8–12% while IFCI, Sigrun Holdings, Indiabulls Finance, BF Utilities and HMT lost 4–6%.

Markets Today

The trend deciding level for the day is 18169/5448 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18220–18295/5464–5488 levels. However, if NIFTY trades below 18169/5448 levels for the first half-an-hour of trade then it may correct up to 18093–18043 / 5423 – 5407 levels.

Economic and Political News
• Gems, jewels exports fail to rise despite Rs68,000cr sops: CAG
• Major port traffic growth drops to 2% in Apr-Jul
• Tax sops to SEZs in FY2010 seen at Rs8.4cr, up 25%
Corporate News
• Indiabulls wins NTC land in Mumbai for Rs1,505cr
• ONGC re-enters KG ultra-deepwater block
• BGR Energy signs two JVs with Hitachi Group
• SAIL lines up Rs1,500cr for domestic coal mines

Market Outlook ---- August 6, 2010

Dealer’s Diary

The key benchmark indices reversed gains after striking 30-month high at the onset of the trading session, on worries that the Central Bank will raise interest rate again in a mid-quarter policy review on September 16, 2010. The market trimmed gains in mid-morning trade. The Sensex came off lows in early afternoon trade. The movement was confined to a narrow range in midafternoon trade and weakened in late trade hitting a fresh intraday low at the fag end of the trading session. The Sensex and Nifty recovered and ended down by 0.2% and 0.4%, respectively. BSE mid-cap index closed almost flat, while the small-cap index closed up by 0.5%. Among the front liners, Tata Motors, SBI, Maruti Suzuki, TCS and ITC gained between 1–2%, while RCOM, Reliance Infra., ONGC, ICICI Bank and M&M lost between 1–2%. Among mid caps, Essar Ship Ports, Wockhardt, UTV Software, Phoenix Mills and Berger Paints gained between 6–19%, while Sigrun Holdings, Nagarjuna Constructions, Aurobindo Pharma, Manappuram General Finance and HMT lost 4–5%.

Markets Today

The trend deciding level for the day is 18208 / 5459 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18260 – 18347 / 5475 – 5503 levels. However, if NIFTY trades below 18208 / 5459 levels for the first half-an-hour of trade then it may correct up to 18121 – 18069 / 5431 – 5415 levels.

Economic and Political News

·         GDP growth seen at 8.4% in FY2011: RBI survey

·         India's textiles sector attracted Rs968cr FDI in 2009

·         States say petroleum items to remain outside GST

Corporate News

·         Tata Realty to execute Rs30,000cr projects over the next five years

·         Essar Shipping's US $280mn FCCBs fully subscribed

·         Zain receives US $295.4mn from Bharti for Africa sale

·         R-Power may commission UMPP eight months ahead of schedule

Market Outlook----August 5, 2010

Dealer’s Diary
The key benchmark indices edged higher in early trade on data showing sustained buying by foreign funds over the past two months and on revival of the monsoons. The market reversed initial gains and slipped into the red in morning trade as Asian stocks declined. However, it regained in mid-morning trade as data showed the services sector expanded for the 15th month in July 10. It slipped again into the red in mid-afternoon trade as European stocks and US index futures fell but surged in late trade. The Sensex and Nifty recovered and ended up by 0.6% and 0.5%, respectively. BSE mid-cap index closed almost flat, while small-cap index closed up by 0.5%. Among the front liners, TCS, Wipro, Infosys, BHEL and Reliance Infra gained between 2–4%, while Bharti Airtel, ACC, Tata Steel, RIL and JP Associates lost between 1–2%. Among mid caps, Jai Corp, Hathway Cables, Bayer Corp, Essar Ship Ports and India Bulls Fin. gained between 6–9%, while REI Agro, Punj Lloyd, Standard Chartered, Jubilant FoodWorks and Kwality Dairy lost between 4–7%.

Markets Today

The trend deciding level for the day is 18187 / 5459 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18820 – 18343 / 5490 – 5513 levels. However, if NIFTY trades below 18187 / 5459 levels for the first half-an-hour of trade then it may correct up to 18124 – 18030 / 5437 – 5406 levels.

Economic and Political News
• India M&A deals treble to US $50bn this year so far
• FDI plunges by 45% to US $1.41bn in June 2010
• PowerMin mulls Rs50,000cr fund for projects
• Maha cabinet nod for 'green tax' on vehicles
Corporate News
• IOC contributes Rs1,012cr to Bihar exchequer
• Era Infra achieves financial closure of a Rs692cr road project
• Maruti Suzuki launches Alto K10
• M&M plans to enter motorcycle biz by year-end

Market Outlook ---- August 3, 2010

Dealer’s Diary
The key benchmark indices got a strong boost from good auto sales numbers of July 2010. Stocks surged at the onset of the trading session, tracking firm Asian equities, but the market came off the higher level later. However, it hit a fresh intraday high in afternoon trade as European stocks rose in early trade. The uptrend continued in mid-afternoon trade as European stocks extended gains and as US index futures surged. The market extended gains in late trade. The Sensex and Nifty recovered and ended up by 1.2% each. The BSE mid-cap and small-cap indices also closed up by 1.2% and 1.0%, respectively. Among the front liners, ICICI Bank, Bharti Airtel, SBI, ONGC and Sterlite Inds gained between 3–4%, while NTPC, TCS, Cipla, M&M and Tata Power lost between 0.0–0.3%. Among mid caps, Manappuram General Finance, Man Infra., Gujarat State Fertilizers, Videocon Inds. and Bayer Crop gained between 8– 20%, while REI Agro, Infotech Enterprises, Trent, Fresenius Kabi and Gujarat Fluorochemicals lost between 3–17%.

Markets Today
The trend deciding level for the day is 18032 / 5407 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18153 – 18225 / 5463 – 5495 levels. However, if NIFTY trades below 18032 / 5407 levels for the first half-an-hour of trade then it may correct up to 17960 – 17839 / 5376 – 5320 levels.

Economic and Political News
• About 79k patent applications lying with the government
• Mineral production in May rises 9%
• OMCs to float tenders for ethanol procurement at Rs27 per litre
• Government not considering duty on wheat imports, says Pawar
Corporate News
• Aurobindo gets FDA nod for ulcer drug
• SAIL invites bankers for 10% stake sale
• HCL Infosystems consortium bags order from MP government
• Videocon to set up Rs1,500cr TV unit in Tamil Nadu

Market Outlook ---- August 2, 2010

Dealer’s Diary

The market edged lower in early trade as Asian stocks fell; however, it cut losses in morning trade as Reliance Industries (RIL) extended initial gains. Trading remained range bound in early afternoon trade and was volatile in afternoon trade. The key benchmark indices extended initial losses to hit fresh intraday low in late trade as global stocks fell. The market breadth turned negative in contrast to a strong breadth earlier in the day. Realty, FMCG, capital goods and IT stocks fell. The Sensex and Nifty ended the session in red, down by 0.7% and 0.8%, respectively. However, BSE mid-cap and small-cap indices closed up by 0.3% and 0.2%, respectively. Among the front liners, M&M, SBI, HDFC Bank, Tata Steel and HDFC gained between 0–3%, while Bharti Airtel, Hero Honda, DLF, ICICI Bank and Tata Motors lost between 2–3%. Among mid caps, Central Bank, IRB Infra, Opto Circuits, Omaxe and Oriental Bank gained between 7– 10%, while Sigrun Holdings, IVR Prime, Petronet LNG, Sterlite Tech. and Chambal Fertilizer lost between 3–5%.

Markets Today

The trend deciding level for the day is 17903 / 5377 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17966 – 18064 / 17805 – 17741 levels. However, if NIFTY trades below 17903 / 5377 levels for the first half-an-hour of trade then it may correct up to 17805 – 17741 / 5340 – 5313 levels.

Economic and Political News

·         State-owned oil firms raised jet fuel (ATF) on Saturday, prices by 2.7%

·         April-June fiscal deficit down 68%

·         Power tariffs hiked in Bengal

Corporate News

·         RIL-owned Infotel raises US $500mn from RBS consortium

·         Adani starts third unit of Mundra power plant

·         Maruti to launch five CNG versions of its cars

·         ADAG, Universal near deal on US $1.5bn theme park