Sunday, August 8, 2010

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%.

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

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