makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 03.06.2011 FRIDAY

WERE TODAY'S GAINERS

MARKET ENDED 03.06.2010 FRIDAY

SENSEX 18376.48 -117.70

NIFTY 5516.75 -33.60

NASDAQ 2756.92 -16.39

UPDATEDTIME 09.28 PM 03 JUNE 2011

Indian markets ended a volatile session in the negative terrain as traders resorted to profit booking in absence of any cues for direction. According to experts, the market is expected to remain range bound for next few sessions and investors are likely to take cues from RBI's policy meet and progress of monsoon.

"The Indian markets are likely to remain range-bound in the next few days. The economic data has been indicative of a moderation in growth. Inflation has also been resilient and the RBI may effect a further rate hike at its policy meeting in June. On the positive side, valuations are reasonable and monsoons also seem to be largely on track.

Our preferred sectors are IT, banking, metals and media. We remain moderately positive on construction, capital goods and auto. We are negative on cement.

On the economic front, higher crude prices may have its impact of domestic inflation and auto-fuel prices. From a market perspective, the culmination of QE2 and its impact on global commodity and equity prices would be keenly monitored. The progress of monsoons would also be crucial factor.
Benchmarks opened on a positive note, despite subdued global peers, ahead of Reliance Industries' (RIL) annual general meeting. However, Mukesh Ambani's plans for the company failed to cheer investors and the scrip declined along with the market.

Mukesh Ambani in his speech at the AGM said that RIL will work with BP to address issues in ramping up production at its key gas block in India. The conglomerate also plans to invest aggressively in its retail business and will launch cash-and-carry or wholesale outlets.

Bombay Stock Exchange's Sensex closed at 18376.48, down 117.70 points or 0.64 per cent. The 30-share index hit a high of 18672.65 and low of 18345.85 intraday.

National Stock Exchange's Nifty ended at 5516.75, down 33.60 points or 0.61 per cent. The broader index touched a high of 5604.95 and low of 5507.20 in trade today.

"After a gap up opening Nifty future moved up towards 5600 levels, but in the absence of follow up buying and selling pressure at higher levels, it fell sharply.

Maximum put OI is seen at 5400 strike which is likely to act as a strong support, while on Call side fresh writing was seen at 5600 strikes. OI concentration indicates that Nifty is likely to consolidate in a range of 5400 to 5600 levels. 5600 is likely to act as a strong resistance area, till it doesn't cross and sustain these levels, medium term market tone would be under pressure.

If Nifty future sustains above crucial resistance of 5600, then only it may move up towards 5700-5750 levels. Whereas on downside, if it fails to hold 5500 levels then profit booking may hit the market towards 5420-5400 levels.

BSE Midcap Index was down 0.34 per cent and BSE Smallcap Index moved 0.05 per cent lower.

Amongst sectoral indices, BSE BSE Oil&Gas Index was down 1.34 per cent, BSE Metal Index slipped 1.05 per cent and BSE Healthcare Index declined 0.94 per cent. BSE Capital Goods Index was up 0.75 per cent.

HDFC (-2.99%), Hindalco Industries (-2.55%), Jaiprakash Associates (-2.36%), Tata Motors (-2.29%) and Reliance Industries (-1.65%) were the major Sensex losers.

Reliance Communications (3.95%), L&T (2.18%), M&M (0.96%), Reliance Infrastructure (0.85%) and Maruti Suzuki (0.82%) were the major gainers.

Shares of Anil Ambani owned companies surged higher on the back of short-coverings after Delhi court dismissed the plea to probe Anil Ambani in 2G scam case.

Market breadth was negative on the BSE with 1485 declines against 1306 advances.