NIFTY- 5,480
CRUDE OIL-Rs 3,594/barrel
GOLD-Rs19, 145/10 gram
Rs/$-Rs 46.67

MARKET ROUND UP:
30 Share Sensex gained by 223 points or 1.25% to close at 18,222 during the week ended 3rd September, 2010. On the other hand Nifty moved up by 71 points or 1.3% to close at 5480 during the same period.
Mid-cap index surged 224.40 points, or 2.94%, during the week to close at 7,859.11, while small-cap gained 271.69 points, or 2.82%, to close the week at 9,912.64.
Market opened the week on buoyant note on back of positive global cues, it moved passed 18,000 marks. However, next day it traded lower because of negative European market. Good GDP number supported by increase in farm output supported the market and it closed on positive territory.

Inflation:        
Annual food inflation rose marginally to 10.86% for the week ended August 21, after the previous two-week decline, despite a fall in vegetables prices. Food inflation had softened to 10.05% for the week ended August 14 against 10.35% in the previous week.

MAJOR SECTORAL GAINERS:

MAJOR SECTORAL LOSERS:

There is only one sectoral loser on BSE.

MAJOR GAINERS IN NIFTY:

MAJOR LOSERS IN NIFTY:

TREND IN GLOBAL MARKET DURING THE WEEK:

Eyes will be set on the certain US economic data releases are:
Monday
Market Closed because of Labor Day.
Tuesday
Treasury STRIPS
Wednesday
ICSS-Goldman Store Sales
Quarterly Services Survey
Beige Book
Thursday
International Trade
Jobless Claims
Money Supply
Fed Balance Sheet
Friday
Wholesale Trade

FII TREND DURING THE WEEK:
(Figures in Crore)

FII were net buyer during the week to the tune of Rs 1395.1 crore.

Fundamental Picks of the Week:
Solar Industries Target Rs 650
Tata Chemical Target Rs 560
Lakshmi Vilas Bank Target Rs 175

KEY EVENTS DURING THE WEEK:
A slowdown in new orders and export led to manufacturing growth easing August.
Export grew by 13.2% in July on YoY basis while import grew by 34.3% in July on YoY basis.
Indian Economy grew by 8.8% in April-June quarter from 8.6% in January-April.
US consumer confidence index for the month rose to 53.5 in August from 51 in July.
Jobless claims edged down to 472,000.
Euro zone consumer price annual inflation eased in August from 20 month high and came in at 1.6%.
Japanese retail sales jumped led by demand for motor vehicle and fuel. Retail sales jumped by 3.9% in July from 3.3% in June.
China’s manufacturing activity rebounded in August and was at a seasonally adjusted 51.9 up from 49.4 in July.

CLOSE WATCH FOR WEEK AHEAD:
Historically September has been the volatile month. It falls or rises by more than 5%. So let’s see which way market will move.
At current price all positives has been discounted.
Global market needs to be watched and will set the direction.
Will the market break the range; this is what everyone is asking.
Sensex is presently trading at 21.7X to trailing 12 month EPS. This is above the long –term average PE, making the market expensive.

TECHNICALS:

Nifty is expected to trade in tight range this week. On upside we could see 5,580 level. On downside Short terms 20 DMA at 5457 provide support to the Nifty then medium term 50 DMA at 5405 provide the support. While Long term 200 DMA stands at 5180.
14 day RSI is at 55 is neutral.

CONCLUSION:
On fundamental basis Nifty and Sensex is trading above 21X to trailing twelve month EPS. This is expensive, much above the average PE. Market is reluctant to budge and is not taking any negative news. At this price all the positive news are discounted. So market is expected to trade in range.
However our research team has done some research and found that in last 10 years in most cases September is volatile month. Market swing more than 5% on either way. Lets this year how the market moves; will it move with the past trend and break the range.

SHARETIPSINFO Team
www.sharetipsinfo.com

 

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