Mkt Outlook: Early nervousness likelyOur Web Bureau / Mumbai June 12, 2006Following a stupendous 515-point rally the Sensex may open on a positive note. However, global cues are not so encouraging as a result of which nervousness may set in the market.An upmove could see the index face resistance around 10,035 levels. Next hrudles could be at 10,104-10,174 levels. On the downside, the index is likely to find support around 9585 levels.Market analyst Bharat Momaya expects the Sensex to now move toward its medium term target of 13,400 points. He says, that on some trading days, one can expect profit booking but Sensex should maintain it course towards 13,400 mark. "Sensex PE ratio is in a comfortable zone at 17 times for Indian stocks and so called downtrend to levels of 6000 points remains a distant dream! Of course, some of Sensex stocks are running at a very high, risky PE ratio. Such stocks should be discarded from portfolio in favour of undervalued / fairly valued stocks for risk-free returns.", he added.Adding that, "long and medium term investors will benefit more than those dabbling in to futures & options. Volatility will continue to haunt the market and one may see violent moves in the Sensex on intraday basis. We saw 1,100 points fall on a single day. I expect 1,000+ points rise also in a single session in coming days.""The data on FII portfolio investments released by SEBI for the period 1st June to 9th June, 2006, demonstrate that huge portfolio churning process is on and on a net basis FII
