Thursday, August 19, 2010

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

No comments: