makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 05.07.2011 TUESDAY

WERE TODAY'S GAINERS

MARKET ENDED 05.07.2010 TUESDAY

SENSEX 18744.56 -69.92

NIFTY 5632.10 -18.40

NASDAQ 2815.15 -00.88

UPDATEDTIME 09.28 PM 05 JULY 2011

Equities ended a sluggish session in the red as investors remained on sidelines after the rally last week. Lack of cues from global peers also dampened sentiments.

According to experts, the market is likely to take a breather for next few sessions as investors would take cues from quarterly results and macro economic factors for direction. Meanwhile, there is likely to be some relief for the investors as inflation and interest rate cycle seem to be close to peak.

In our view, various indicators are increasingly signaling that inflation and interest rates are close to peak levels, with respite likely from the second half.

With the RBI hiking rates 10 times since March 2010 and, more importantly, with demand-supply factors pushing up the broader interest rates by ~200bp, the demand momentum in the economy has slowed, as can be observed from the recent incremental credit offtake, monthly cement and auto sales numbers and almost stagnant capital formation during 4QFY2011.

National Stock Exchange's Nifty closed at 5632.10, down 18.40 points or 0.33 per cent. The broader index touched a high of 5659.85 and low of 5612.30 in trade today.

Bombay Stock Exchange's Sensex ended at 18744.56, down 69.92 points or 0.37 per cent. The 30-share index hit a high of 18837.88 and low of 18694.05 intraday.

"Nifty has a strong support around 5600 levels, sustaining below which the Index can see some pressure towards 5550 levels. And on upside Nifty finds its resistance around 5700 levels sustaining which it can move towards its 200 Days Simple Moving Average of 5760 levels.

Stocks which are looking positive are Apollo Tyres, Tata Chemicals, Voltas whereas Reliance and JSW Steel are weak.

BSE Midcap Index was down 0.09 per cent and BSE Smallcap Index moved 0.20 per cent higher.

Amongst sectoral indices, BSE Oil&gas Index was down 1.60 per cent, BSE FMCG Index declined 1.29 per cent and BSE Realty Index moved 1.29 per cent lower. BSE Auto Index moved 0.88 per cent higher, BSE IT Index gained 0.37 per cent and BSE Bankex edged 0.33 per cent higher.

BHEL (-5.01%), Cairn Indi (-3.38%), Reliance Industries (-2.65%), Hindalco Industries (-1.97%), ITC (-1.53%) and IDFC (-1.41%) were the major Nifty losers.

Shares of Bharat Heavy Electricals were under pressure following reports that government may approve disinvestment of 5 per cent stake in the company.

Ranbaxy Laboratories (3.11%), Grasim (2.98%), M&M (2.62%), Reliance Capital (2.46%) and SAIL (2.34%) were amongst the top gainers.

Market breadth was positive on the NSE with 1538 gainers against 1338 losers.