Market Commentary :
Intraday volatility was high. The market opened on a firm note, as a partial decontrol of fuel prices on Friday, 25 June 2010, and expectations of a good monsoon this year, boosted sentiments. Stocks extended gains in morning trade. The market pared gains in mid-morning trade. The market regained strength in early afternoon trade. The market pared gains soon after hitting fresh intraday high in afternoon trade. The market once again regained strength to hit fresh intraday high in mid-afternoon trade as European stocks rose. The market extended gains to hit fresh intraday high in late trade.
Prime Minister Manmohan Singh on Sunday at the G20 meet warned of the risk of global double-dip recession if countries simultaneously cut government spending, recommending a nuanced approach for dealing with public debt. India, he said, would halve its fiscal deficit by 2013/14. Asia's third largest economy is projected to hit a deficit of 5.5% of GDP in the current fiscal year that ends in March 2011.
The market sentiment remains strong, with most Indian firms, including Reliance Industries, L&T, Tata Steel and Tata Motors, paying higher advance tax in Q1 June 2010 over Q1 June 2009. Higher advance tax payment normally indicates higher profits for the period under review. Advance tax payments by companies during the April-June quarter account for 15% of the total advance tax payable in the fiscal year.
SOMETHING about FIIs :
Foreign institutional investors (FIIs) sold shares worth a net Rs 284.10 crore on Friday, 25 June 2010, compared to an inflow of Rs 1238.40 crore on Thursday, 24 June 2010.
The net outflow of Rs 284.10 crore on 25 June 2010 was a result of gross purchases Rs 1375.80 crore and gross sales Rs 1659.80 crore. There was an outflow of Rs 276 crore from the secondary equity markets which was a result of gross purchases Rs 1375.80 crore and gross sales Rs 1651.70 crore. The BSE 30-share Sensex fell 155.71 points or 0.88% to 17,574.53 on that day.
There was an outflow of Rs 8.10 crore from the category 'primary market & others'.
FII inflow in June 2010 totaled Rs 9804.40 crore (till 25 June 2010). FIIs had sold equities worth Rs 9436.70 crore in May 2010. FII inflow in the calendar year 2010 totaled Rs 30373.40 crore (till 25 June 2010).
There are a total of 1,714 foreign funds registered with the Securities & Exchange Board of India.
Allover Market Review :
Nifty hit fresh intraday highs in late trade as European stocks and US index futures rose. The market breadth was strong. Oil & gas stocks extended Friday's (25 June 2010) sharp gains after the government freed petrol pricing and raised prices of other fuels. Metal, auto, sugar and realty stocks also gained. Except the BSE FMCG index, all the other sectoral indices on BSE were in green.
Nifty July 2010 futures were at 5338.55, at a premium of 5.05 points over spot closing of 5333.50. Turnover in NSE's futures & options (F&O) segment fell to Rs 60,166.73 crore from Rs 77,422.45 crore on Friday, 25 June 2010.
The intermediate trend remains up and we are seeing continuation of higher top higher bottom formation on the Daily chart. On the upside, as Nifty managed to trade and close above 5332 levels now we are likely to test 5350 levels or even the recent 7th April 2010 highs of 5400 levels very soon.
Traders holding long positions can trail the stop loss to 5050 levels and trade with positive bias as long as the markets hold 5050 levels.
Given Live Trade on Messenger:
Buy at 5333 with StopLoss 5314
1st Target 5348 (Nifty High 5345)
2nd Target 5368
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