New Page 1 Closing above 4510 levels was very crucial and now it may act as a strong support for the bulls.
Strong investors' appetite for heavyweight and other sectoral stocks coupled with firm global indices and continuing higher foreign fund inflows could see the market extend its winning streak. However, caution should be maintained as higher bouts of intra-day volatility is likely to persist after the market's run-up to record peak. Key local indices, the Nifty could test higher levels around 4550 in the short term and has a key support at 4490. The Sensex is likely to test 14700 on the downside while it may face resistance at 15000.
US indices gained on Monday, sending the Dow Jones industrial average near the breakeven point for the year, as better-than-expected readings on manufacturing activity raised hopes that a global economic recovery is brewing. While the Dow Jones adding by 221 points to close at 8721 and the Nasdaq also ended firm with gains of 54 points at 1829.
The Indian ADRs witnessed decent to firm buying support on US bourses. Satyam was the major gainer amongst the ADRs and vaulted over 7.55%, while MTNL propelled 6.05%. Infosys, Wipro, Tata Motors, ICICI Bank, VSNL, HDFC Bank and Dr Reddy's were up over 1-5% each. Rediff & Patni Computer however lost marginallly and closed in negative territory.
Crude oil prices moved up. While the Nymex light crude oil for July series went up by $2.27 at $68.58 a barrel. In the commodity segment, the Comex gold moved down marginally by 30 cents to settle at $980 an ounce.
Daily trend of FII/MF investment in equities
On May 29 2009, FIIs were net buyers of stocks to the tune of Rs834 crore (purchases worth Rs5979 crore and sales of Rs5145 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs689 crore (purchases worth Rs1748 crore and sales of Rs1059 crore).
Stocks with +ve bias : India Cement, Satyam (SL 54.5), DLF (SL 407)
Stocks with -ve bias : BOB (SL 450), ICICI Bank (SL 738)
Stocks for Investment: MAN Industries, Godrej Consumer & Opto Circuits
