ECONOMY NEWS MAY5 2010

The latest data showed infrastructure sector output jumped 7.2% in March 2010 from a year earlier, higher than an upwardly revised rise of 4.7% in February 2010.

The Indian Meteorological department (IMD) expects normal rainfall in the June-September monsoon season this year. Rainfall is likely to be 98% of the long-term average, the IMD said on 23 April 2010. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation. The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season holds key.
The Reserve Bank of India expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand.
The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted. A 25 basis points hike in the cash reserve ratio (CRR) with effective from 24 April 2010 will suck out excess liquidity of Rs 12500 crore from the banking system.
In its half-yearly World Economic Outlook, the International Monetary Fund (IMF) has pegged India's GDP growth at 8.75% in calendar 2010 and 8.5% in calendar 2011. According to the IMF, domestic demand in India will strengthen as the labour market improves, and investment is expected to be boosted by strong corporate profitability, rising business confidence and favourable financing conditions.
The Parliament on Tuesday passed the Union Budget 2010-11 with the Rajya Sabha approving the Finance Bill. Earlier, the bill was passed in Lok Sabha. The Finance Bill now requires Presidential assent before the provisions are notified. Finance Minister Pranab Mukherjee in a debate on the Finance Bill remained firm on not rolling back increase in fuel prices 

NIFTY FUT Sell around 5074-75 Targets 1st 5061,5051,5038



wid Stoploss : 5088

NIFTY DAILY VIEW

The Future index of the nifty were also open with higher note but the selling pressure across the all sector could touch the intraday low, the cues from out of the boundaries made the nifty future low, the sentiments of the trader were bearish when the market open so the selling happened in future stocks, the suggestion for the trader is that keep short position in all stock with strict stop loss the support would be at 5093-5050. and the resistance would be at 5203.

YESTERDAY WE SAID

Close below 5200 bearish head and should pattern will give a target 5140-5050-5000 mark easily. So Higher level locate the shorting opportunity.