Market Outlook 29-07-2009

Mixed trend was seen at the bourses as main indices traded in a narrow band amidst stock specific action. Broader trend was bullish as a number of stocks witnessed good buying interest. Tata Motors was the star of the day as it climbed more than 10% after surprisingly stronger set of numbers. Real estate stocks were also in demand and Unitech that gained around 9% led this pack. Other smart gainers were Renuka, Nagarjuna Constructions, DCHL, Sesa Goa, Welspun Guj, Tata Chem, HCC, CESC, Praj Ind, GSPL and Triveni. As can be seen from list of gainers that no particular sector dominated the proceeding and action was more stock specific that anything else. HUL was the biggest loser as it lost around 7% on less than enthusiastic numbers. Heavyweights like RIL, ICICI and SBI continued to exert pressure on the main indices. Other main losers were Patel Engg, BOI, ABB, Idea, Neyvelli and Punj Lloyd. Overall the breadth was positive while the volumes remained on the higher side.

Nifty failed to move past 4600 as a number of heavyweights witnessed some selling pressure. Nifty is facing resistance in 4580 to 4620 band and would gain further momentum only above 4620. Above 4525, trend remains positive and the probability of a further breakout above 4620 also remains high. Below 4525, it could slip to around 4445-50 where strong support is likely. Nagarjuna Construction has given a strong breakout above 148 and could target 170 and even 195 if it sustains above 145. HCC is also showing positive bias and could target 124-126 in coming days. Sugar pack continues to look good and more upside is likely in Bajaj Hind and Balrampur Chini. Other stocks that could surprise on the upside are Bharti (above 432), Ambuja Cement, Welspun, Praj(above 95), Rolta, Mcdowells, BEML( above 1090), M&M and Power Grid. Nifty has immediate support around 4515-25 while fresh breakout is likely above 4625.