Saturday, March 27, 2010

Weekly Nifty Update 27 March, 2010 by Tanmay G Purohit
Nifty has closed positive (+20 points) at 5282 positive close 7th week in a row and 7week rally has been highest after October 2007 8week rally and in March2009 we had 7week rally after seeing a low of 2500. Nifty has closed @ highest level in 111 weeks and now 5310 highest point in 2years formed in January 2010 can be important resistance above which 5368 & 5500 can be possible targets.  FIIs have made a net investment of Rs.15881Cr for month of March till 25March, taking their total inflow to Rs 17692 crore so far this year. Midcap & Small cap stocks have given negative returns in the week that ended with Adv-483 Vs Dec-874 (on NSE) and 1067-1908 (on BSE). The breadth has deteriorated through the week in spite of indices being positive and it can be an indication of probable reversal in near future.
NMDC tumbled 16.86% to 298.30 and stock fell below its recently concluded follow-on-public offer (FPO) price of Rs 300 per share. HDFC BANK rose 7% as the stock moved into All Time High territory. RPOWER, PNB, SUNPHARMA, HUL rose more than 4% each. REALTY stocks were main losers after RBI raised interest rates – DLF -5%, UNITECH -3.8%.
US Healthcare Bill was passed and Pharmaceutical stocks have gained shown by BSE HEALTHCARE INDEX which rose 2.59% this week. JUBILANT, DISHMAN, DIVIS look good from CRAMS sector. CIPLA will replace its peer SUN PHARMA on the Bombay Stock Exchange’s benchmark Sensex from May 3.
RBI came out with its Financial Stability Report and it has said Economic slowdown can have a lagged effect on Credit Growth and Profitability of banks. Going by many statements, RBI has indicated more tightening ahead and it may happen at next month Policy Meeting as well which can  keep AUTO, REALTY  and BANKING stocks under check in near future.
There were major sovereign risks as Dubai, Greece and Portugal were downgraded; now Dubai Government has said they would help the indebted companies and Greece got bailout package from the EU which makes these worries recede for some time. But any correction from here would be event-based and it can be overnight also, so regular profit-taking is advisable for short-term players.
Stocks looking good: IFCI, EKC, SUNTV, MRPL, ONMOBILE
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