Market Outlook 05-08-2009

Markets remained subdued throughout the day as some profit booking was seen at higher levels. Steel stocks in particular, faced some resistance as traders booked profits at higher levels. Overall, the main line stocks felt some pressure while mid and small caps continued to throw winners. Tata Motors was an exception amongst the heavyweights as it rose to new highs on strong buying. It was up almost 8% during the day but shed some weight in the last 30 minutes. Cement stocks staged a late rally as leaders like ACC and Ambuja made new highs. However, it was India Cements that emerged as the biggest gainer, rising almost 7%. Other prominent gainers were GE Ship, Indian Hotels, Financial Tech, Dish TV, Kotak Bank, MRPL, BPCL,Hindalco and MLL. On the losers list were Punj Lloyd, Biocon, Tata Power, Cipla , HCC and Patel Engg. Markets softened a bit as Sensex touched 16K after a long time. This psychological level provided some resistance as traders and investors booked some profits. But there was nothing unusual about it as market remains in uptrend and is likely to settle above 16k and 4700. Positive bias is likely to be maintained even in the immediate term as long as Nifty trades above 4600. Index might spend some time around 4650-4700 even as stock specific moves take the center stage. Indian Hotels could move to around 77-78 while GE Shipping might target 305-310 in coming days. Another Zee group Company (along with ZEE), Dish TV is also showing strong momentum and is likely to target 53-54 in coming days. Amongst the heavyweights HUL is again approaching the psychological level of 300 and sustained trade above 300 could take it to around 320-325. ACC could target 990-1000 in next few days and long positions could be created in ACC with stop placed below 870. Nifty has immediate support around 4620-4635 and then around 4575-80 while some resistance is seen around 4775-4790.