Yesterday, the market opened gap up on positive global cues especially from the overnight U S markets (after Bernanke's annouce) which closed with substantial gains. The Asian markets too remained strong in the morning hours and the market participants were seen buying stocks across the board. The indices remained range bound till mid afternoon when a sudden sell off across the board pulled down the markets to day’s low but soon the markets recovered sharply and closed in the positive with marginal gain. The Sensex, which made a high of 18,216 at the start but dipped to a low of 17,960 in afternoon trade, finally ended the session at 18,032 with a gain of 33 points whereas the Nifty closed at 5415, up 6.75 points over its previous close. It touched a high of 5469 and a low of 5390.35 during the day. The mood turned quite cautious around mid afternoon after the introduction of DTC Bill, in the Lok Sabha. The news about the retention of 0 % long term capital gains tax status of equities in the new direct taxes code also helped the relief cum covering rally in the last hour of trading. The Nifty futures closed at 5429 with a premium of 12 points above the Nifty index.
Bond Market: India’s 10-year bonds dropped, snapping a two-day gain, on concern that the central bank may raise interest rates next month to curb inflation. India’s rupee rose the most in two weeks on optimism that the government data due tomorrow will show economic growth accelerated in the three months through June.
Market Outlook: The GDP data for Q2FY11 is due to be announced today can be an important event for the market. It is expected to grow around 8.8%.
Market sentiment: Despite of positive closing, the market breadth was negative as declining stocks outnumbered the advancing ones. Of the 3,058 scrips traded on the BSE, 1,599 scrips fell while 1,348 scrips rose. Hundred and eleven shares remained unchanged.
FOR TODAY: Buy Power Finance Corporation (PFC) around Rs 346-347 for target of 354-364 and stop loss of Rs 342; Sell Reliance Industries (RIL) below Rs 945 for target of Rs 935-925 and stop loss of Rs 955 and Buy Tata Steel above Rs 531 for target of Rs 539-545 and stop loss of Rs 521.90. These calls are from Fairwealth Securities Pvt. Ltd. for today only. In addition to this, the following calls may be watched for:
Emkay Global recommends 'Hold' on Bharti Airtel with target of Rs 345 as against CMP of Rs 319;
Ambit Capital recommends 'Buy' on Tata Steel with target of Rs 650 as against CMP of Rs 510;
Kotak Securities recommends 'Buy' on JBF Industries with target of Rs 166 as against CMP of Rs 149
DERIVATIVE SEGMENT: On an intra‐day basis Nifty has a support at 5390 and is likely to face a stiff resistance near 5450. If it breaks 5390, it may further go down to 5375 and then 5350. However, if Nifty is able to sustain above 5450, it may go up to level of 5470 and then 5490.
Disclaimer: I have no position. Do your own homework before going with above views.
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