makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 01.07.2011 FRIDAY

WERE TODAY'S GAINERS

MARKET ENDED 01.07.2010 FRIDAY

SENSEX 18762.80 -83.07

NIFTY 5627.20 -20.20

NASDAQ 2800.24 +26.72

UPDATEDTIME 09.28 PM 01 JULY 2011

Benchmarks ended the first day of July F&O series in the negative territory bringing an end to six-day winning streak.

The decline was led by profit booking in index heavy-weight Reliance Industries after the Central Bureau of Investigation filed an FIR against V K Sibal , a former chief of the Directorate General of Hydrocarbons. The CAG report has said that during his tenure, cost for some of Reliance Industries exploration activities were inflated causing a huge loss to the government.

Market had opened with a gap-up but pared gains after hitting crucial resistance levels. According to analysts, the technical charts indicate that the market looks bullish and investors can go long.

Nifty has formed the continuation of the "Hammer" pattern, which signifies bullish sentiment to continue in Nifty. Market has crucial resistance levels of 5720-5750. Significant short covering can be seen if Nifty closes above the 5770 levels. In that case, Nifty can extend its gains to the level of 5920 on higher side.

First round of selling around 5600 should be used as an buying opportunity in the market; any extended slippage below 5580 should be alarming to the bulls. Plunge below 5550 should be exposing Nifty to the deeper supports of 5410 and 5250.

National Stock Exchange's Nifty closed at 5627.20, down 20.20 points or 0.36 per cent. The broader index touched a high of 5705.80 and low of 5609.75 in trade today.

Bombay Stock Exchange's Sensex ended at 18762.80, down 83.07 points or 0.44 per cent. The 30-share index hit a high of 19031.38 and low of 18713.07 intraday.

Investors should look for adding longs at 5400 level in their portfolio. Traders should look for going long at 5580 level for target of 5700 with stop at 5550. Option traders should look for buying put at 5750 levels on Nifty.

BSE Midcap Index was up 0.69 per cent and BSE Smallcap Index moved 0.83 per cent higher.

Amongst sectoral indices, BSE Oil&gas Index declined 1.84 per cent, BSE Healthcare Index was down 0.34 per cent and BSE Auto Index moved 0.18 per cent lower.
BSE Realty Index was up 3.01 per cent, BSE IT Index gained 0.78 per cent and BSE Metal Index moved 0.57 per cent higher.

Reliance Industries (-4.30%), Ambuja Cements (-2.84%), Bharti Airtel (-2.82%), Ranbaxy Laboratories (-2.65%) and Hindustan Unilever (-2.21%) were the major losers.

Maruti Suzuki sales for the month of June 2011 dipped to 80298 vehicles against 88091 vehicles in the same period a year ago. The company said the decline in sales was on account of strike at its Manesar plant which lasted for 10.5 days. In addition to that, the company's Gurgaon plant was shut for six days due to maintenance shutdown.

CLSA has downgraded Bharti Airtel to 'underperform' from 'outperform' on regulatory and licence renewal payments.

DLF (4.99%), Cairn India (4.51%), Hindalco Industries (3.77%), IDFC (2.90%) and GAIL (2.15%) were amongst the top gainers.

DLF will sell its shareholding in two IT SEZs in Pune and Noida, for a combined value of Rs1,300 crore, as it steps up the disposal of non-core assets to pay down debt of almost $5 billion. Two partners, Ackruti City and The 3C Company, will also exit.

The long-awaited approval of the Cairn Vedanta deal that comes after ten months is expected to leave its imprint on the oil and gas sector in more than one way. For one, the deal signifies the entry of the metal and mining group Vedanta Resources into the oil and gas sector even as it finally puts to rest the debate over whether investors in the sector can exit by selling out.

Market breadth was positive on the NSE with 1724 gainers against 1182 losers.