Monday, September 13, 2010

Market Outlook ---- September 14, 2010

Dealer’s Diary
The market surged in the morning trade due to firm Asian stocks. The key benchmark indices scaled their highest level in nearly 32 months. The market continued its uptrend in early afternoon trade. Stocks further extended gains in mid-afternoon trade, bolstered by better-than-expected industrial production numbers in July. The market hit a fresh intraday high in afternoon on positive global cues post Europe's Basel III norms for banks and US economic data. Finally, the Sensex and Nifty closed with gains of 2.2% and 2.1%, respectively. BSE mid and small-cap indices underperformed the benchmark indices to end higher by 0.8% and 0.2%, respectively. Among the front liners, SBI, HDFC, Hindalco, Reliance Infra and ICICI Bank gained 4–6%, while Wipro, Reliance Comm., Hero Honda and Bharti Airtel lost 0–1%. Among mid caps, Sigrun Holdings, Berger Paints, BASF India, UTV Software and M&M Finance gained 6–10%, while Shree Global Traders, Ruchi Soya, GSPL, IVR Prime and Allcargo Global lost 3–11%.

Markets Today
The trend deciding level for the day is 19,099 / 5,723 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,353 – 19,497 / 5,807 – 5,855 levels. However, if NIFTY trades below 19,099 / 5,723 levels for the first half-an-hour of trade then it may correct up to 18,955 – 18,701 / 5,676 – 5,592 levels.

Economic and Political News
• New WPI series comes into effect today
• Urea investment policy to do away with competitive bids for new units
• RBI names panel to examine LAF corridor
• Indian Banks may not need more capital for Basel-III
Corporate News
• Shriram, TPG to buy Vishal Retail for Rs100cr
• Nestle to invest Rs500cr in food processing unit
• Wyeth sues Dr. Reddy’s Lab over drug patent

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