NIFTY- 5,408
CRUDE OIL-Rs 3,503/ barrel
GOLD-Rs18, 980/ 10 gram
Rs/$-Rs 46.86
MARKET ROUND UP:
30 Share Sensex declined by 404 points or 2.2% to close at 17,998 during the week ended 27th August, 2010. On the other hand Nifty moved down by 122 points or 2.2% to close at 5,408 during the same period.
Mid-cap stocks drop 186.49 points, or 2.38%, to 7,634.71 in the week. While small-cap shares plunged 234.81 points, or 3.38%, to 9,640.95 during the week.
Indian market started the week on weaker note. It was over all a lack luster trading that was seen in the week. Aggressive selling pressure was seen at the higher level and Nifty slipped 5,500 marks. Global cues remained subdued and the economic data from the US were also weak question the recovery.
Inflation:
Annual food inflation fell for the second straight week, to 10.05% for the week ended August 14, as prices of vegetables like potato and onion declined. Food inflation had softened to 10.35% for the week ended August 7 against 11.40% in the previous week.
Economy:
The Cabinet approved the much-awaited direct taxes code (DTC) Bill on Thursday, which is likely to be tabled in Parliament during the ongoing Monsoon session and thereafter it may be referred to standing committee. The bill also seeks to remove surcharge and cess on corporate tax, which could provide relief to business houses. The Government proposed to raise exemption limit on income tax from the present Rs 1.6 lakh to Rs 2 lakh.
MAJOR SECTORAL GAINERS:
There was only one sectoral gainers during the week.
MAJOR SECTORAL LOSERS:
AUTO |
-1.86% |
BANKEX |
-2.50% |
CAPITAL GOODS |
-1.10% |
FMCG |
-0.60% |
HEALTH CARE |
-1.30% |
IT |
-1.97% |
METAL |
-3.34% |
OIL & GAS |
-1.14% |
POWER |
-1.17% |
PSU |
-0.13% |
REALTY |
-8.54% |
MAJOR GAINERS IN NIFTY:
BPCL |
11.12% |
ONGC |
4.70% |
BHARTI AIRTEL |
1.90% |
MAJOR LOSERS IN NIFTY:
JP ASSOCIATES |
-9.55% |
UNITECH |
-9.50% |
HINDALCO |
-8.15% |
TREND IN GLOBAL MARKET DURING THE WEEK:
DJI |
-2.78% |
NASGAQ |
-2.77% |
S&P 500 |
-2.65% |
NYSE |
-2.70% |
FTSE 100 |
-1.06% |
CAC 40 |
-2.75% |
NIKKEI 225 |
-2.05% |
HANG SENG |
-1.85% |
SSE COMPOSITE |
-1.20% |
BSE |
-2.20% |
Eyes will be set on the certain US economic data releases are:
Monday
Personal Income and Outlays
Tuesday
Chicago PMI
Consumer Confidence
State Street Investor Confidence Index
Wednesday
Motor Vehicle Sales
ISM Manufacturing Index
Construction Spending
EIA Petroleum Status Report
Thursday
Jobless Claims
Productivity and Costs
Factory Orders
Pending Home Sales
Friday
Employment Situation
ISM Non- Mfg Index
FII TREND DURING THE WEEK:
(Figures in Crore)
23/08/2010 |
566.9 |
25/08/2010 |
1096 |
26/08/2010 |
-290.4 |
FII were net buyer during the week to the tune of Rs 1372.50 crore.
Fundamental Picks of the Week:
Gabriel India Target Rs 75
Polaris Software Target Rs 190
Apollo Tyre Target Rs 85
KEY EVENTS DURING THE WEEK:
Government extended sops worth Rs 10.52 billion to exporters, particularly for labor intensive textile, handicrafts and leather sectors.
The Union cabinet has approved the direct tax code (DTC) bill, paving way for its introduction in the ongoing monsoon session of the parliament.
Indian has overtaken Japan in demand for oil among Asian nations.
Union government refused to give environmental clearance to Vedanta for its $ 1.7 billion bauxite mining project in Orissa.
R-Power in considering investment of $5 billion in Indonesia. Company plan to produce 50 mn tons of coal a year in 5 years from South Sumatra.
Sales of existing houses in US plunged by a record 27% in July as the effects of a government tax credit waned.
Sales of US new homes unexpectedly dropped in July to lowest level.
Orders for durable goods increased less than the forecast.
Jobless claim in US fell by 31,000 in the week ended 21st August.
Industrial orders in European Union rose by 4.1% in June.
Japan’s export growth slowed for the fifth month in July as the Yen appreciated against major currencies.
German economy expanded more than the forecast in second quarter by 2.2%.
CLOSE WATCH FOR WEEK AHEAD:
FII inflow needs to be closely watched during the week. Global market will decide which way the market will move.
TECHNICALS:
S3 |
S2 |
S1 |
NIFTY |
R1 |
R2 |
R3 |
5,280 |
5,310 |
5,390 |
5,408 |
5,460 |
5,510 |
5,540 |
Nifty has fallen below short term 20 DMA of 5,462. 5390 will provide support as it is medium term 50 DMA. Long term 200 DMA is at 5178. Weakness in the Nifty will continue. While oscillator 14 day RSI has come down to 46 suggesting some technical pull back could be seen in the Nifty.
CONCLUSION:
We expect this week will see a choppy trading session as bulls and bears will fight. Market to trade with negative bias but tomorrow session could see some technical pull back. The strong closing of US market on Friday will provide good support at the start on Monday. But as we will move further gain will wane. Stock specific stories are expected to continue. It is better to invest in low beta stocks like pharma and FMCG at this point and avoid high beta counters.
SHARETIPSINFO Team
www.sharetipsinfo.com
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