Tuesday, September 7, 2010

Market Outlook ---- September 8, 2010

Dealer’s Diary
The benchmark indices continued their previous session’s positive streak by opening in green following a healthy start in Asian indices. The markets gained further ground in the morning session but the rally was short-lived as a minor sell-off took the indices lower. The indices continued to trade in a narrow zone until the final session, where a swift bout of buying took the markets to fresh 31- month highs. However, profit booking in the final half hour erased the gains from the rally with indices closing the session with moderate gains. The Sensex and Nifty closed with gains of 0.5% each. BSE mid and small-cap indices gained 0.1% and 0.6%, respectively. Among the front liners, ACC, L&T, TCS, JP Associates and Jindal Steel gained 2–7%, while HUL, SBI, HDFC Bank, Tata Power and M&M lost 1%. Among mid caps, Prism Cement, Wockhardt, Madras Cements, India Cements and Dalmia Cement gained 9–16%, while Sirgun Holdings, United Breweries, United Breweries Holdings, HT Media and Amtek Auto lost 4–7%.

The trend deciding level for the day is 18643 / 5600 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18714 – 18782 / 5629 – 5654 levels. However, if NIFTY trades below 18643 / 5600 levels for the first half-an-hour of trade then it may correct up to 18574 – 18503 / 5575 – 5547 levels.

Economic and Political News
• Companies bill to become law by fiscal-end: MCA Secretary
• Govt. will soon start releasing monthly data on FDI outflows
• FDI inflows down by 49% in July 2010
• Natural rubber production up 12% in August at 72,500tonnes
• Wipro may pass the cost rise from visa fees to clients
• Aditya Birla Nuvo to infuse Rs300cr in Aditya Birla Finance Ltd.
• Yes Bank to raise Rs500cr by December via Tier II capital: MD
• Tata Steel puts South African unit (Tata Steel KZN Pte) on the block

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