Thursday, August 5, 2010

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%.

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

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