Sunday, September 12, 2010

Market Outlook ---- September 13, 2010


Dealer’s Diary
The market cut gains after hitting a 31-month high at the onset of the trading session. Stocks came further off highs in mid-morning trade. A bout of volatility was witnessed in early afternoon trade as the key benchmark indices came off lows. The market held the positive zone in afternoon trade before surging in mid-afternoon trade, as European stocks and US index futures moved into the green from red. The market cut gains, soon after hitting a fresh 31-month high in late trade. The Sensex and Nifty closed with gains of 0.7% and 0.6%, respectively. BSE mid and small-cap indices gained 0.7% and 0.3%, respectively. Among the front liners, M&M, SBI, HDFC Bank, ICICI Bank and Tata Steel gained 2–3%, while Cipla, Tata Motors, Reliance Infra, ACC and Sterlite Industries lost 1–2%. Among mid caps, BASF India, Whirlpool, Coromandel International, Sigrun Holdings and KEC International gained 6– 10%, while Shree Global Trading, MVL, Indraprastha Gas, Gammon Infra and Radico Khaitan lost 3–20%.

The trend deciding level for the day is 18764 / 5632 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18859 – 18918 / 5656 - 5671 levels. However, if NIFTY trades below 18764 / 5632 levels for the first half-an-hour of trade then it may correct up to 18705 – 18610 / 5616 - 5593 levels.

Economic and Political News
·         IPO norms for non-life insurance companies in three weeks: IRDA
·         Food inflation rises to 11.47% from 10.86%
·         IIP grows 13.8% yoy in July 2010
·         Govt to introduce two new CPI indices for tracking inflation by January 2011
·         Lanco Infra achieves financial closure of 1,320MW project
·         Kotak Realty invests Rs250cr in Emaar MGF projects
·         Emami, Marico join fray for Paras Pharma
·         Power Grid's Rs8,000cr FPO to hit street in November

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