"In the field of observation, chance favors only the prepared mind". - Louis Pasteur
TODAY'S MAJOR NEWS: Fag-end fall for second straight day.
Power Grid Q1 net profit up 29% yoy; the stock ends 0.76% higher.
Fortis Healthcare Q1 consolidated net loss at Rs14.31 crore; the stock closes 0.42% higher.
Jain Irrigation gains on bagging order; the stock ends 3.02% higher.
The key benchmark indices reversed initial gains as investors preferred profit taking ahead of the weekend. Index heavyweight Reliance Industries (RIL) dropped. But, media and consumer durables stocks rose. Realty stocks reversed initial gains. Bank stocks fell on profit taking after a sustained rise over the past days. Commercial vehicles maker Tata Motors surged close to 4% on expectations of strong Q1 June 2010 result which is due early next week. Other auto stocks were mixed. The BSE 30-share Sensex shed 28.84 points or 0.16%, off about 100 points from the day's high and up close to 25 points from the day's low.
Asian markets mostly ended in red in listless sort of trading with a cautious mood in the whole asset markets keeping the activity tight. The recent economic data releases from the US have been mostly bleak and traders are eagerly waiting for the non-farm data to shed some light on the current status of the fragile recovery. The yesterday's US economic data was quite poor and the Asian markets were seen facing selling pressure right from the start. The US Labor Department reported yesterday that first-time claims for unemployment insurance increased to a three-month high of 479,000 in the week ended July 31. US retailers also reported poor sales figures for July, keeping the outlook for consumer spending sluggish. However, China's Shanghai Composite ended 1.44% higher.
Like yesterday, the domestic markets slid at the fag end to extend its losing run on the second consecutive day. The Indian markets ended the last day of the week on a flat note with modest losses as the indices shed moderate morning gains due to sell-off in the late trade. The selling in the heavyweights like Reliance Industries Ltd (RIL), State Bank of India and Tata Consultancy Services in the last hour of the trade pulled the domestic bourses lower. RIL fell for the third straight day and was trading just above the physiological levels of Rs1000. Media shares hog the limelight after the Telecom Regulatory Authority of India (TRAI) recommended a four-phase digitisation process for cable networks in India while setting a sunset date of December 31, 2013 for complete switchover to digital.
The Sensex commenced the session on a flat note with a negative bias tracking subdued global cues. The Sensex soon turned positive and traded in the green throughout the morning session. The index remained range-bound in the first half of the trade due to mixed global cues. In the afternoon session, the Sensex hit the day’s high of 18245 as the European stocks opened higher. However, in the final hour of the trade, the Sensex started to pare its gains and slipped into the negative terrain to hit the day’s low of 18118 owing to sell-off across the board.
At the finishing line, the Sensex shut at 18144, 29 points lower. The Nifty closed below 5450 at 5439, 8 points lower.
The market breadth was negative. Of the 3,060 shares traded on the BSE, 1,427 shares advanced whereas 1,529 shares declined. Hundred and four shares traded unchanged.
Dollar lost early but then reserved the losses after hitting 1.3200 levels against the Euro. Crude oil came off highs above $82 per barrel as traders eye the non-farm payrolls and the commodity witnessed some continued profit selling after the recent flurry of gains.
In the meantime, European markets closed in RED (FTSE: -33.39; CAC: -48.14 and DAX: -73.95). US markets are trading deep RED (DOW: -142.74 and NASDAQ: -29.71).
So, Are we going towards 5400 ?  More on Tomorrow.........
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