Market Outlook 15-10-2009

Aided by positive global sentiments mainline indices surged to 17 months high. Broad based rally lifted Nifty above 5100 while Sensex gained more than 200 points. Infra and metal stocks were in demand as various stocks belonging to these two sectors zoomed to higher levels. Tata Steel and Sterlite led the metals pack while stocks like Punj, JP Associates, and IVRCL Infra led the infra pack. Sugar stocks were also in demand as Bajaj Hind led the Sugar pack with almost 12% rise on big volumes. Other significant gainers for the day were PTC, Sesa Goa, JSPL, Indian Info, GVK, Essar Oil, Nagarjuna Constructions, Triveni, HCC, DCHL,Bank Of India and Bharat Forge. Telecom stocks remained immune to the overall positive sentiment s stocks continued to decline. Other significant losers were KFA, Ultratech, IBReal, Tata Comm and BPCL. Reliance pack moved sideways with slight negative bias, particularly in ADA stocks. Breadth was positive while volumes were on the higher side. Nifty moved out of consolidation range of past 7-8 sessions and made a new high. It could head towards 5250-5300 in coming sessions. Infra stocks are showing strong positive momentum and various stocks have given positive breakouts. More upside is likely in HCC, JP Associates, IVRCL Infra, GMR Infra (above 75), Voltas and Unitech. Renuka sugars could move higher towards 222-225 if it trades above 205 while Bajaj Hind might target the earlier high of 230. Amongst others more upside is likely in GVK Power, MLL, Opto Circuits, Jindal SAW, Andhra Bank (above 107), CESC and Neyvelli. Nifty has support around 5030-40 while some resistance is seen around 5175.