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%.
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
· 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
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