Thursday, August 26, 2010

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
• 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

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