makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 09.03.2011WEDNESDAY

WERE TODAY'S SENSEX GAINERS

MARKET ENDED 09.03.2010 WEDNESDAY

SENSEX 18469.95 +30.30

NIFTY 5531.00 +10.20

NASDAQ 2750.24 -15.53

S&P 500 1316.98 -04.84

UPDATEDTIME 09.28 PM 09 MARCH 2011

Indian markets ended rangebound session on a flat-to-positive note due to lack ofdirection from global peers. After political stability in the UPA government and easing crude oil prices, the market will be awaiting IIP data and keenly watching developments in the middle-east public unrest for further cues.
Indices opened on a positive note taking cues from Asian peers but failed to hold on to gains at higher levels and slipped in the red. The benchmarks got support from index heavy-weight Reliance Industries after the DGH said that the company's gas output from east coast block may touch 67 mmscmd in April. Current gas output from the D6 block in Krishna-Godavari basin is 53 mmscmd.

The number expected was 80 mmscmd and the news says it is 67 mmscmd. So, probably it is to a certain extent below expectation. Also, assuming that going forward, it will probably increase further, then we will have to see whether it is going to be at an incremental price or it the prefixed price of $4.2 per mmBtu. So, we need clarity on these two issues.

Nonetheless, the raise in output will have an incremental impact on the business because it would probably have a slightly better upside. It probably would result into about Rs 3 increase in earnings per shares if the full year output is increased to 67 mmscmd vis-à-vis 52 or 55 mmscmd of last year.

Bombay Stock Exchange's Sensex closed at 18469.95, up 30.30 points or 0.16 per cent. The 30-share index touched a low of 18303.80 and high of 18583.30 intraday.

National Stock Exchange's Nifty ended at 5531, up 10.20 points or 0.18 per cent. The broader index touched a low of 5477.45 and high of 5563.30 in today's trade.

If the Nifty closes above 5565 then it can move up to 200 DMA of 5665. Here one can expect profit booking. On the downside, if it slips below 5440 then 5376-5313 looks possible.

From medium term perspective, the market is in the process of forming a higher bottom. Once Nifty closes above 200 DMA for 2-3 sessions then it can move to 5796-5950-6000 levels.

BSE Midcap Index was up 0.65 per cent and BSE Smallcap Index moved 0.82 per cent higher.

Amongst the sectoral indices, BSE Realty Index was up 1.74 per cent, BSE Auto Index gained 0.72 per cent and BSE Power Index moved 0.48 per cent higher. BSE Healthcare Index moved 0.36 per cent lower and BSE IT Index declined 0.14 per cent.

Reliance Communications (9.36%), Reliance Infrastructure (2.37%), Bajaj Auto (2.27%), DLF (1.33%) and ICICI Bank (1.24%) were the top Senex gainers.

Shares of Reliance Communications moved higher after reports that it is planning to sell its tower business.

Cipla (-1.74%), Sterlite Industries (-1.19%), NTPC (-1.03%), Jindal Steel (-0.69%) and HUL (-0.66%) were amongst the major losers.

Market breadth was positive on the BSE with 1645 advances against 1218 declines.