Tuesday, March 24, 2009

>Daily Market & Technical Outlook (ICICI Direct)

Market outlook

Indian markets are likely to open positive, taking cues from global markets. The SGX Nifty was trading 30 points up in the morning. Other Asian markets are also trading positive as the US plan to relieve banks of toxic debt spurred investors to pick up riskier assets. Before this, US markets rallied after the unveiling of the plan to soak up the sick assets that have constricted the world's financial system, triggering a 7% stock market rally on Monday with help from an unexpected surge in existing home sales. The rupee is expected to rise for a fifth straight session on Tuesday as higher Asian stock markets strengthen global investors demand for local stocks

The Sensex has supports at 9260 and 9160 and resistances at 9620 and 9680. The Nifty has supports at 2920 and 2880 and resistances at 2990 and 3000

Asian stocks rose on optimism the US Treasury’s plan to remove banks’ toxic assets will revive economic growth. The Nikkei advanced 170.4 points, or 2.1%, to trade at 8,385.9. The Hang Seng gained 187.2 points, or 1.4%, to trade at 13,634.7

US stocks surged around 7% on Monday after the Obama administration detailed a plan to purge toxic assets from bank balance sheets, fuelling optimism about a revival in bank lending and driving double-digit gains in financial shares. The Dow Jones jumped 497.48 points, or 6.84%, to 7,775.86 while the S&P 500 surged 54.38 points, or 7.08%, to 822.92. The Nasdaq rose 98.50 points, or 6.76%, to 1,555.77

Stocks in news: Shree Cement, M&M, Kalpataru Power, Omaxe, Subhash Projects

To see full report: OPENING BELL 240309