Thursday, August 7, 2008

Pre Session Market - Aug 07 , 2008

The Indian Market is expected to have negative opening as the Asian market are trading on the backfoot. The Indian markets on Wednesday took a sharp U turn in the final hours of the trading session to pare most of its initial gains on the back of heavy profit booking across the counters. After a strong start to the session backed by US Federal Reserve step to hold the key interest rates unchanged and a sharp fall in global crude oil prices gave a boost to the investors sentiments at the initial stage. However, the market did not hold up at the higher level and slipped to close with marginal gains. A steep fall in metal stocks pulled down the market in the last one hour. The metal sector index dropped by 405.64 points at 12,859.19. . NSE Nifty ended above 4,500 mark and BSE Sensex crossed 15,000 level. The NSE Nifty closed higher by 14.70 points at 4,517.55 and BSE Sensex closed up by 112.47 points at 15,073.54. The BSE Mid Caps closed with gains of 11.54 points at 5,855.42 and Small Cap ended down by 48.66 points 7,144.13. The BSE Sensex touched intraday high of 15,422.82 and intraday low of 15,035.60. We expect that market may drift down during the trading session as the cues from the Asian markets are not in favor and the inflation figures is scheduled today. So the investors will take calculative steps to book their positions.

On Wednesday the US market extends its gains to close in a positive territory. The Dow Jones Industrial Average (DJIA) closed higher by 40.30 points at 11,656.07 along with NASDAQ closed up by 28.54 points at 2,378.37 and S&P 500 index closed at 1,289.19 up by 4.31 points.

Indian ADRs ended in green. In technology sector, Tata Communications grew by 3.80% followed by Wipro grew by 3.70%, Infosys by 2.75%, Satyam by 2.60%, Sterlite industries by 2.38%, Patni Computers by 1.28% and MTNL by 0.79%.

Today the major stock markets in Asia are trading lower as the government bonds grew on Thursday, as a sustained fall in oil prices could not shake a sense of gloom among investors about financial sector instability and the global growth outlook. Japan’s Nikkei is trading down by 161 points at 13,093.89 along with Strait Times index trading lower by 48.15 points at 2,838.63, Seoul Composite trading at 1,557.04 down by 21.67 points and Taiwan Weighted trading lower by 9.82 points at 7,016.42 while Hang Seng is trading higher by 122.21 points at 22,071.96.

The FIIs on Wednesday stood as net buyer both in equity and debt. The gross equity purchased was Rs4,530.10 Crore and the gross debt purchased was Rs19.00 Crore while the gross equity sold stood at Rs4,466.00 Crore and gross debt sold stood at Rs9.60 Crore. Therefore, the net investment of equity reported was Rs64.10 Crore and net debt was Rs9.60 Crore.

Crude oil futures for the month of August delivery closed lower by $0.59 at $118.37 per barrel on New York Mercantile Exchange. The crude prices dropped to an intraday low of $117.25. The crude prices finally managed to recover from day''s lows after traders digested the government''s weekly energy inventory data that reported a second weekly fall in gasoline supplies against an unexpected rise in crude inventories.

The Indian rupee inched closer to below 42-level by gaining 17 paise on August 6 to close at 42.07/08 against the greenback as the demand for the US currency from oil companies weakened amid a fall in crude prices in global markets and softening of dollar.In a volatile trade at the Interbank Foreign Exchange (Forex) market, the local currency resumed at 42.08/10 per dollar from Tuesday''s close of 42.24/25.

It rallied further to breach the 42-mark at 41.92 on the back of strong surge in Indian benchmark Sensex at early stages. The domestic unit however pared its early gains in line with the equity market to close at 42.07/08, still higher than overnight close by 17 paise.

Today, Nifty has support at 4,378 and resistance at 4,562 and BSE Sensex has support at 15,623 and resistance at 15,193.

No comments: