India Stocks Outlook: Seen range-bound with negative bias Fri
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K.Karthik Raja
Feb 21, 2008, 6:58:08 AM2/21/08
to Kences1
India Stocks Outlook: Seen range-bound with negative bias Fri
MUMBAI - Key share indices are likely to trade in a range Friday,
but the bias remains weak as sentiment is muted on fears of more
negative news from overseas, dealers said.
Troubled French bank Societe Generale today said a trading fraud
and write-downs due to U.S. sub-prime mortgage market crisis led to a
net loss of $4.91 bln (196 bln rupees) in the fourth quarter, compared
with $1.73 bln (69 bln rupees) net profit a year ago.
Also, Standard Chartered abandoned a plan to refinance its $7.15
bln (285.5 bln rupees) structured investment vehicle as continued
deterioration of the fund's assets left it unable to work out a rescue
plan.
While global cues are likely to determine market direction, the
underlying sentiment remains uncertain on worries foreign funds are
facing redemption pressures overseas,
"Nifty is likely to trade between 5000-5400 in the next couple of
sessions, with strong support at 5075-5100. U.S. economic reports due
later today are likely to be keenly tracked by investors.
Dow Jones futures were trading up 20 points ahead of the reports.
Investors will also eye India's headline inflation rate due at
noon Friday. Inflation is seen nudging up to 4.11% for week to Feb 9
from 4.07% a week ago.
Today, Bombay Stock Exchange's 30-share Sensex ended at 17734.68,
up 117.08 points, or 0.7%, from Wednesday.
National Stock Exchange's 50-share Nifty closed at 5191.80, up
37.35 points or 0.7%.
If Sensex closes above 18314, then, we can see an upward trend,
otherwise it may come down to form another lower bottom around 16000
levels.
"Until 5200 is crossed on Nifty on a closing basis for two to
three
sessions, we will continue to see weakness.
However, dealers do not see Nifty below the 5000 mark in the week
to the Budget, as it is likely to be people-friendly due to being an
election year.
Fertiliser and sugar shares are likely to remain in the limelight
in the
run up to the Budget.
K.Karthik Raja
www.kences1.blogspot.com
MUMBAI - Key share indices are likely to trade in a range Friday,
but the bias remains weak as sentiment is muted on fears of more
negative news from overseas, dealers said.
Troubled French bank Societe Generale today said a trading fraud
and write-downs due to U.S. sub-prime mortgage market crisis led to a
net loss of $4.91 bln (196 bln rupees) in the fourth quarter, compared
with $1.73 bln (69 bln rupees) net profit a year ago.
Also, Standard Chartered abandoned a plan to refinance its $7.15
bln (285.5 bln rupees) structured investment vehicle as continued
deterioration of the fund's assets left it unable to work out a rescue
plan.
While global cues are likely to determine market direction, the
underlying sentiment remains uncertain on worries foreign funds are
facing redemption pressures overseas,
"Nifty is likely to trade between 5000-5400 in the next couple of
sessions, with strong support at 5075-5100. U.S. economic reports due
later today are likely to be keenly tracked by investors.
Dow Jones futures were trading up 20 points ahead of the reports.
Investors will also eye India's headline inflation rate due at
noon Friday. Inflation is seen nudging up to 4.11% for week to Feb 9
from 4.07% a week ago.
Today, Bombay Stock Exchange's 30-share Sensex ended at 17734.68,
up 117.08 points, or 0.7%, from Wednesday.
National Stock Exchange's 50-share Nifty closed at 5191.80, up
37.35 points or 0.7%.
If Sensex closes above 18314, then, we can see an upward trend,
otherwise it may come down to form another lower bottom around 16000
levels.
"Until 5200 is crossed on Nifty on a closing basis for two to
three
sessions, we will continue to see weakness.
However, dealers do not see Nifty below the 5000 mark in the week
to the Budget, as it is likely to be people-friendly due to being an
election year.
Fertiliser and sugar shares are likely to remain in the limelight
in the
run up to the Budget.
K.Karthik Raja
www.kences1.blogspot.com
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