Thursday, May 7, 2009

>Daily Market & Technical Outlook (ICICI Direct)

Key points
■ Market outlook — Open positive on global cues
■ Positive — Re likely to be firm, FII buying
■ Negative — MFs selling consistently

Market outlook

■ Indian markets are likely to open positive following global cues. The most awaited stress results for US banks will be announced later in the evening. The global markets will decide the trend after this announcement. We advise traders not to be too aggressive and carry overnight positions today. It is advisable to book profits once the markets open up and wait for fresh cues tomorrow morning. We expect the markets to be volatile today for the same reason

■ Inflation for the week ended April 25 is expected at 0.65% against 0.57% a week earlier

■ The Sensex has supports at 11900 and 11730 and resistances at 12270 and 12560. The Nifty has supports at 3590 and 3550 and resistances at 3680 and 3730

■ Asian markets are trading positive on expectation of a positive stress result later today

■ US stocks rose on Wednesday after a private sector reading on the labour market signalled unemployment may be receding and leaked bank stress test results suggested most banks are healthier than previously thought. The rally in bank stocks was widespread, with Citigroup jumping more than 16% to $3.9, Bank of America up 17% to $12.7 and JP Morgan gaining 7% to $37.2. The Dow was up 1.2%. The Nasdaq was up 0.3% while the S&P registered 1.7% gains

■ Stocks in news: ONGC, Ranbaxy, M&M, Reliance Capital

■ Recent development: Cement prices are likely to fall by Rs 20/ bag in Mumbai

To see full report: OPENING BELL 070509