makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 16.08.2010 MONDAY

Monday, August 16, 2010

MARKET ENDED 16.08.2010 MONDAY

WERE NIFTY GAINERS

MARKET ENDED 16.08.2010 MONDAY

SENSEX 18050.78 -116.25

NIFTY 5418.30 -33.80

NASDAQ 2277.17 -28.52

DJIA 10644.25 -54.50

RS/$ 46.30 +00.23

Indian equity benchmarks ended in the negative terrain on Monday, after sentiments turned bearish in European markets. Metals, realty and capital goods stocks were the worst hit while FMCG stocks showed some strength.
Indices opened on a tepid note due to lack of cues from Asian peers. Positive opening of European peers saw bulls back in action. But the pull-back was short-lived as benchmarks slipped to psychological support levels.
National Stock Exchange’s Nifty closed at 5418.30, down 33.80 points or 0.62 per cent. The broader index hit a low of 5397.40 and high of 5465.25.
Bombay Stock Exchange’s Sensex ended at 18050.78, down 116.25 points or 0.64 per cent. The index touched a high of 18203.92 and low of 17997.46.
Markets are stuck in a range of 17840 / 5350 on the downside and 18300 / 5480 on the upside (on Sensex and Nifty respectively). In view of the daily chart, we are witnessing that the momentum oscillator’s viz. the RSI and the Stochastic are positively poised.
This suggests that there is high probability of the indices to trade and close above 18315 / 5480 levels. We maintain our view that once the indices trade and close above 18315 / 5480 levels they are likely to test 18600 / 5600 levels.
On the downside, 17840 / 5350 still remains crucial support level for the coming week. Any breach of this level would mean loss of upside momentum and we could witness weakness.
We reiterate our view that traders holding long positions should maintain the stop-loss at 5340 levels and trade with a positive bias as long as the markets hold 5350 levels.
The BSE Midcap Index closed up 0.08 per cent and BSE Smallcap Index moved lower by 0.25 per cent.
Amongst the sectoral indices, BSE Metal Index was down 1.50 per cent, BSE Realty Index declined 1.09 per cent and BSE Capital Goods Index slipped 0.90 per cent.
Suzlon Energy (-7.26%), Cairn India (-6.36%), Cipla (-3.45%), Reliance Infrastructure (-3.41%) and Reliance Communications (-2.65%) were among the major Nifty losers.
Power Grid Corporation (3.34%), PNB (2.79%), HUL (1.54%), Siemens (1.52%) and ITC (1.28%) were amongst the top Nifty gainers.
Stock specific move was seen in Cairn India, Sesa Goa and Sterlite Industries. Anil Agarwal-promoted Vedanta, which owns Sterlite Industries, will acquire 51-61% equity stake in Cairn India for $9.6 billion. Sterlite Industries ended flat on the NSE.
Shares of Sesa Goa and Cairn India were under pressure after the former announced that it will acquire 20% strategic stake in Cairn India under an Open Offer. The total cash consideration for the shares to be acquired is $3 billion. Sesa Goa ended 8.94 per cent lower on the NSE.
Meanwhile, Suzlon Energy posted a loss of Rs 912 crore for the quarter ended June 30 on account of lower sales and a notional foreign exchange loss of Rs 250 crore. Private equity fund TPG Capital and a US-based global energy fund are in separate talks with Suzlon to acquire up to 25% stake in its German wind energy subsidiary, REpower Systems, for $500 million.
Market breadth was negative on the NSE with 1409 advances against 1818 declines.
Meanwhile, European markets were in the red after Japan’s GDP grew at a slower than expected 0.4 per cent in the second quarter. Wall Street is expected to follow suit, with Dow Jones futures down 0.16 per cent, S&P 500 lower by 0.20 per cent and Nasdaq easing 0.07 per cent.