Monday, September 6, 2010

Market Outlook --- September 7, 2010


Dealer’s Diary
The Indian indices witnessed a broad-based rally following strong gains in global indices, as the US reported a better-than-expected payroll data, giving credibility to recovery in the world's biggest economy. The markets opened gapup and continued to rise steadily without any major dip throughout the session. The positive sentiment was evident from lack of volatility. The benchmark indices, viz. BSE Sensex and S&P CNX Nifty, hit their highest level in the last 31 months as good monsoon and sustained buying by foreign funds boosted investor sentiment. The Sensex and Nifty closed with gains of 1.9% and 1.8%, respectively. BSE mid and small-cap indices rose in line with benchmark indices, registering gains of 1.3% and 1.8%, respectively. Among the front liners, Tata Steel, Hindalco, ICICI Bank, Sterlite Industries and JP Associates gained 3–7%, while Hero Honda, Reliance Comm., HUL and L&T lost 0–2%. Among mid caps, MVL, Gujarat Gas, Apollo Tyres, Sterling Bio and Indian Metals gained 6– 15%, while KEC International, Sirgun Holdings, Allcargo Global, Nirma and Sunteck Realty lost 2–7%.

Markets Today
The trend deciding level for the day is 18428 / 5549 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18732 – 18904 / 5618 - 5658 levels. However, if NIFTY trades below 18428 / 5549 levels for the first half-an-hour of trade then it may correct up to 18256 – 17952 / 5508 - 5439 levels.

Economic and Political News
·         Decision on Cairn-Vedanta deal in 4–6 weeks: Murli Deora
·         Govt. planning IOC, ONGC stake sale in March quarter
·         Direct tax collections up 14% during April–August 2010
·         Marine exports jump about 22% in July 2010
Corporate News
·         PFC to raise US $240mn loans in Japan and China
·         HDFC Bank hikes BPLR by 50bp to 16.25%
·         Firstsource inks outsourcing deal with Axis Bank
·         Aurobindo Pharma in licensing pact with Astra Zeneca

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