More momentum!

Sometimes being pushed to the wall gives you the momentum necessary to get over it! - Peter de Jager.

The bulls may have been pushed to the wall on Tuesday but looks like they will regain some momentum today. Global indicators are bright with the US market rising despite a drop in consumer confidence. European shares dipped owing to sovereign debt concerns but ended off session lows. Most Asian markets are trading higher, which makes it pretty predictable for Indian indices to gain at the opening bell. Thereafter, the market could turn sideways and the key indices might trade in a narrow band.



Profit booking at higher levels is always on the cards. In any case a small correction won’t do any harm after this month’s stellar gains. Unfavourable breadth has been a cause for worry but as long the Nifty doesn’t close below 6000, the trend is likely to remain positive. On the eve of F&O expiry, we expect the choppy movement to prevail in the near term, and the Nifty to trade between 5990-6080.

Mahindra Satyam will be in focus as it announces results for FY09 and FY10. Sterlite is also likely to hog limelight as it has been told to shut its copper smelter at Tuticorin. Shares of Indosolar will get listed today.

Shipping Corporation of India (SCI) will also restate its accounts. PSU oil companies will be in the spotlight amid reports that the Government will cap its share of subsidy in FY11 at last year's level. L&T continues to be in the news. GTL and GTL Infra could come under pressure amid reports of some tax irregularities.

The FIIs were net buyers of Rs5.73bn in the cash segment on Tuesday (provisionally), according to the NSE web site. Local funds were net sellers of Rs9.05bn. In the F&O segment, the foreign funds were net sellers at Rs9.25bn. On Monday, the FIIs were net buyers of Rs13.07bn in the cash segment, according to SEBI's web site. Mutual Funds were net sellers of Rs6.11bn in the cash segment on the same day.

Important News Snippets For The Day:

Tata Steel would finalise plans to refinance $5.4-billion loans for its British unit Corus this week.

Reliance Capital may issue bonus shares next year when it completes 25 years of existence.

Aban Offshore said it has approved plans to raise over Rs43bn from foreign as well as domestic markets through QIP and issuing FCCBs.

Bharati Shipyard plans to sell as much as 15% equity to Shipping Corporation of India.

Solrex Pharmaceuticals Co sold 8% stake in Orchid Chemicals & Pharmaceuticals Ltd via open market.

The Asian Development Bank (ADB) has raised the 2010 economic growth forecast for India to 8.5%, from 8.2% estimated in April.

The Government plans to invest US$20.8bn for expanding major ports.

The Government will offer about 34 areas for exploration of oil and gas in NELP-IX that will be launched on October 15.