Thursday, September 16, 2010

Market Outlook----September 17, 2010

Dealer’s Diary
The key benchmark indices scaled their 32-month high in early trade. However, the market slipped into the red in morning trade, as most Asian stocks and US index futures fell before surging to a fresh 32-month high in afternoon trade after the Reserve Bank of India (RBI), at a mid-term policy review, signaled that it may be nearing a pause in its current tightening cycle. The market came off the higher level later. The market hit a fresh intraday low in late trade. The Sensex came off the lower level later. The Sensex and Nifty closed with losses of 0.4% and 0.6%, respectively. BSE mid and small-cap indices closed down by 1.0% and 0.4%, respectively. Among the front liners, DLF, HDFC, SBI, Maruti Suzuki and L&T gained 1–3%, while Infosys, Reliance Comm., Bharti Airtel, Sterlite Inds and Jaiprakash Associates lost 2–3%. Among mid caps, Alstom Projects, Indraprastha Gas, Alfa Laval, Berger Paints and Redington gained 3–6%, while HT Media, Shree Global, Pantaloon, Jagran Prakashan and Dish TV lost 4–8%.

Markets Today
The trend deciding level for the day is 19479/5849 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19575–19732/5882–5935 levels. However, if NIFTY trades below 19479/5849 levels for the first half-an-hour of trade then it may correct up to 19322–19226/5796–5763 levels.

Economic and Political News
• Food inflation rises to 15.1%
• Fiscal deficit to be contained at targeted 5.5%: RBI
• Government raises DA to 45%, to cost exchequer Rs9,303cr p.a.
• Economy to grow by 9% in FY2011–12: Finance Minister
• Monsoon rains 19% above normal in the past week: Met. Department
• Ashok Leyland bags order for 2,850 buses from Tamil Nadu government
• JK Paper to raise about Rs450cr
• Ispat to sell 10% stake to UK’s Stemcor

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