New Page 1 Market may continue to witness profit booking following weak global cues. Crucial support may be 3550.
Nervousness in the market is likely to continue after the Sensex reported losses in yesterday's trades. Weakness in the global indices could make the investors jittery from taking any fresh position. Among the key local indices, the Nifty could decline to 3600 or 3550 on the downside while on the upside there is a near term resistance at 3680. The Sensex has a likely support at 11850 and may face resistance at 12150.
US indices ended negative on Wednesday, with the Nasdaq and S&P 500 falling for a third straight session, after a weaker-than-expected retail sales report gave investors a reason to retreat. While the Dow Jones lost by 184 points to close at 8285, the Nasdaq ended 52 point lower at 1664.
All the Indian ADRs ended in the red on the US bourses except few. Rediff fell sharply and tumbled 12% followed by Tata Motors moved down 8.55% while ICICI Bank, HDFC Bank, Infosys, Satyam, Wipro, Dr Reddy and VSNL declined over 3-6% each. However, Patni Computers and MTNL clsed in positive territory with marginal gains.
The Nymex light crude oil for June delivery slipped by 34 cents to close at $57.68. In the commodity space, the Comex gold for June series gained $2 to settle at $925.90 a troy ounce.
Daily trend of FII/MF investment in equities
On May 12 2009, FIIs were net buyers of stocks to the tune of Rs494 crore (purchases worth Rs2543 crore and sales of Rs2049 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs300 crore (purchases worth Rs720 crore and sales of Rs420 crore).
Inflation Expectations: 0.3% v/s 0.7% last week
Stocks with +ve Bias: Punj Loyyd, HDFC Bank, L&T
Stocks with ve Bias: Sesa Goa
Stocks for Short Term Delivery: Tata Chemical
Stocks for Investment: BEL, Cadila, ITC and Ultratech.
