Friday, March 20, 2009

>Daily Market & Technical Outlook (ICICI Direct)


Market outlook — Open flat to negative on mixed global cues
Positive — FIIs buying
Negative – MFs selling, crude above $51/bbl


Indian markets are likely to open flat to negative, taking cues from global markets. Asian markets were trading mixed in the morning, with investors still digesting the implications of a surprise plan by the US Federal Reserve to pump an extra $1 trillion into the financial system. Before this US markets closed as much as 1.3% lower, as uncertainty over the cost of the Fed's plan prompted investors to book profits after the recent rally. Crude jumped more than 7% to top $51/bbl after the Fed’s announcement. The rupee is expected to consolidate around three-week peaks on Friday, with a revival in foreign equity inflows underpinning the market.

The inflation rate stood at 0.44% for the week ended March 7 this year, against 2.43% in the previous week.

The Sensex has supports at 8910 and 8840 and resistances at 9050 and 9090. The Nifty has supports at 2780 and 2760 and resistances at 2820 and 2830.

Asian stocks opened mixed, offsetting declines by banks amid scepticism that US and Japanese plans to purchase bonds will ease the financial crisis. The Hang Seng declined 141.4 points, or 1.1%, to trade 12,989.5.

US stocks fell on Thursday on concerns that the Federal Reserve's latest efforts to stem the US recession are too costly and untested, prompting investors to book profits on bank shares after the recent sharp rally. The Dow Jones fell 85.78 points, or 1.15%, to 7,400.80. The S&P 500 lost 10.31 points, or 1.30%, to 784.04. The Nasdaq shed 7.74 points, or 0.52%, to 1,483.48.

Stocks in news: Pantaloons Retail, RIL, Satyam Computer, Areva T&D

To see full report: OPENING BELL 200309