Monday, September 20, 2010

Market Outlook ---- September 21, 2010

Dealer’s Diary
The key benchmark indices opened on firm note on frenzied buying, outperforming its Asian and European counterparts. The market breath was strong throughout the trading session and it hit a fresh 32-month high in late trade as result of foreign institution’s buying spree and higher 2Q advance tax payments from frontline companies. FMCG stocks were in demand, with ITC striking its lifetime high. Metal and mining stocks gained, mirroring rise in global metal prices. Banking shares rose on fresh buying, while software pivotals saw mixed trend. The Sensex and Nifty closed with gains of 1.6% each. BSE mid and small-cap indices were up by 0.7% each. Among the front liners, RCOM, ITC, Hero Honda, HUL and HDFC gained 3–5%, while Sterlite Industries, NTPC, TCS, BHEL and Tata Power lost 0–1%. Among mid caps, Blue Star, GMDC, MVL, Brigade Entertainment and Bajaj Hindusthan gained 5–8%, while Edelweiss Cap., Blue Dart, Sigrun Holdings, Rajesh Exports and Purvankara Projects lost 3–5%.

Markets Today
The trend deciding level for the day is 19760/5952 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 20074–20241/6018–6056 levels. However, if NIFTY trades below 19760/5952 levels for the first half-an-hour of trade then it may correct up to 19592–19278/5914–5847 levels.

Economic and Political News
• BSE to launch mobile trading platform
• FM expects over 8.5% GDP growth in 2010–11
• Gold hits fresh record peak on economy concerns
Corporate News
• Bharti Airtel selects 3G network gear partners
• Core Projects buys two US companies for US $20mn
• Rural Electrification Corp. gets infrastructure finance company status

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