makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 12.07.2010 MONDAY

Monday, July 12, 2010

MARKET ENDED 12.07.2010 MONDAY

were today's gainers

MARKET ENDED 12.07.2010 MONDAY

SENSEX 17937.20 +103.66

NIFTY 5383.00 +30.55

NASDAQ 2175.40 +15.93

DJIA 10138.99 +120.71

RS/$ 46.85 +0.16

Indian markets ended on a positive note Monday after retreating from psychological levels as below-estimate Index of Industrial Production figures for the month of May hurt sentiments.
Indices opened on firm note on the back of positive data from the US. National Stock Exchange’s Nifty hit 30-month high by crossing 5400, first time since February 6 2008 and Bombay Stock Exchange’s Sensex surpassed 18000 mark. However disappointing IIP data turned out to be a spoilsport and benchmarks pared most of early morning gains.
Index of industrial production (IIP) for the month of May grew at 11.5 per cent against expectations of 16 per cent. It grew at 17.6 per cent last month.
We were expecting the numbers to moderate from June due to a fading base effect, but May data indicates that the moderation has already begun. This is reflected across segments though it is more prominent in capital and consumer goods.
We maintain our FY11 GDP estimate of 8.4%. This is based on 4% growth in agri, 9.4% in industry and 9% in services. We maintain our view of further rate hikes of 50bps in 2010, and given our expectations on June inflation (10.2%, data due on July 14) we expect a 25bp hike in the policy meeting on July 27.

Bombay Stock Exchange’s Sensex closed at 17937.20, up 103.66 points or 0.58 per cent. The index touched a high of 18010.07 and low of 17874.95.
National Stock Exchange’s Nifty ended at 5383, up 30.55 points or 0.57 per cent. The index touched a high of 5402.70 and low of 5351.60.
Domestic markets are making an attempt to breakout out of a congestion pattern, which requires the Nifty to trade above the 5365 - 5400 band forcefully. The weekly range advocated for the Nifty between the 5425 / 5125 has held as the Nifty gyrated within these parameters through the week.
The coming week is likely to witness a range of 5450 on the upsides and the 5150 on declines. The bullish pivot will be at the 5325 levels and the bearish pivot at the 5275 levels. Traders are suggested to maintain a bullish bias atleast in the first half of the week. Fresh trades must still be initiated with caution as the markets are likely to witness choppiness prior to a breakout on it's way up.

BSE Midcap Index was up 0.26 per cent and BSE Smallcap Index moved 0.60 per cent higher.
Amongst the sectoral indices, BSE Realty Index was up 2.24 per cent and BSE Bankex advanced 1.34 per cent. BSE Oil&gas Index slipped 0.43 per cent and BSE Healthcare Index declined 0.15 per cent.
DLF (2.38%), Tata Motors (2.32%), Wipro (2.25%), TCS (2.19%), and BHEL (2.11%) led the Sensex upmove.
Reliance Infrastructure (-1.91%), Hero Honda (-1.55%), Reliance Communications (-1.37%), ONGC (-1.36%) and ACC (-1.19%) were under pressure.
Market breadth was positive on the BSE with 719 gainers against 591 losers.
While the European markets were in the green, the stock futures suggested a poor start in the US. At 4:50 pm IST, Dow Jones futures was down 0.32 per cent, Nasdaq 100 slipped 0.32 per cent and S&P 500 declined 0.37 per cent