Tuesday, October 21, 2008

Pre Session Market - Oct 21, 2008

Today markets are likely to open positive as global effort to save the financial markets pave way for the positive sentiments across the US and Other Asian markets. The US markets have shown some sign of relief coupled with Asian and European markets which are also exuding some sign of improvement due to government support and intervention. The global factor looks good and in the domestic scenario our Hounarable Prime Minister Dr. Manmohan Singh has yesterday asserted in the parliament about the safety of public deposits with banks and the economic growth prospects of the country. Considering the overall positive sentiments across US, Europe and other Asian markets we expect today’s domestic markets to be trading positive uptrend.

On Monday, domestic markets opened positive on the back of positive trend in the Asian and European markets. After a phenomenal positive opening the investors throughout the trading session managed to keep the markets above the green line. IT, Banking stocks and FMCG lured the most as RBI reduced the Repo rate by 100bps at 8% and the Asian and European markets exuded positive sentiments. Realty sector was shattered, however IT, Banking and FMCG moved up by 8.05%, 2.69% and 2.08% respectively. During the trading session we expect the market to be trading green with an upward trend.

The BSE Sensex closed higher by 247.74 points at 10,223.09 and NSE Nifty ended up by 48.45 points at 3,122.80. The BSE Mid Caps and Small Caps closed with losses of 38.49 points at 3,506.35 and by 55.04 points at 4,112.82. The BSE Sensex touched intraday high of 10,538.05 and intraday low of 10,023.08.

On Monday, US markets showed some sign of relief and ended in green on the back of positive global cues and improving credit markets. The Credit markets have started showing some sign of improvement as the short term lending rates are declining. The difference between what banks pay each other for three-month loans and what the government pays, known as the TED Spread, declined 65 basis points to 2.96%. Further Ben Bernanke testified before the House Budget committee about the second fiscal stimulus package to save the current credit crisis.

On the global front Netherlands is injecting US$ 13 billion in ING and South Korea said that it would guarantee some of its foreign debt held by its domestic banks. Crude oil futures for the month of November delivery grew by $2.40 at $74.25 a barrel on New York Mercantile Exchange on expectations that OPEC will cut output later this week. Crude has fallen about 50% from its high of $147.27 on 11th July.
The Dow Jones Industrial Average (DJIA) closed higher by 413.21 points at 9,265.43. NASDAQ index also inclined by 58.74 points at 1,770.03 and the S&P 500 (SPX) was high by 44.85 points to close at 985.40 points.

Indian ADRs ended with positive gains. In technology sector, Wipro gained by (6.46%) followed by Satyam that ended high by (2.14%) and Patni Computers closing low by (1.79%). In banking sector ICICI Bank was high by (0.84%), while HDFC Bank gained (8.32%). In telecommunication sector, Tata Communication inclined by (9.46%), while MTNL gained by (4.47%). Sterlite Industries was high by (7.89%).

Today the major stock markets in Asia opened mixed. The Shanghai Composite is trading high by 8.28 points, at 1,982.29. Hang Seng is high by 87.91 points at 15,411.87. Further Japan''s Nikkei is high by 147.79 points at 9,153.38. Straits Times is trading is also trading high by 25.54 points at 1,969.69 and South Korea’s Seoul Composite is low by 1.66 points at 1,205.73.

The FIIs on Monday stood as net sellers in equity and debt. Gross equity purchased stood at Rs2234.30 Crore and gross debt purchased stood at Rs111.40 Crore, while the gross equity sold stood at Rs3101.80 Crore and gross debt sold stood at Rs113.10 Crore. Therefore, the net investment of equity and debt reported were (Rs867.60 Crore) and (Rs1.70 Crore) respectively.

On Monday, the partially convertible rupee ended at 48.98/99 per dollar, 0.2% weaker than Thursday''s close of 48.88/89. The rupee fell to level of 49.20 during the trading. Rupee ended down as large dollar demand from importers compensates gains in domestic market. Whereas, RBIs cut in key lending rate provided a little relief.

On BSE, total number of shares traded was Rs. 23.50 crores and total turnover stood at Rs. 3,697.57 crores. On NSE, total volume of shares traded was Rs. 50.61 crores and total turnover was Rs 10,071.23 crores.

Top traded volumes on NSE Nifty – Reliance Petro with total traded volume of 20326517 shares, followed by Unitech with 12379471 shares, Suzlon with 10675148 shares, NTPC with 10379115 shares and Unitech with ICICI bank with 10096403 shares respectively.

On NSE Future and Options, total numbers of contracts traded in index futures were 961370 with a total turnover of Rs 14478.77 Crore. Along with this total number of contracts traded in stock futures were 890607 with a total turnover of Rs 10865.52 Crore. Total numbers of contracts for index options were 1010336 and total turnover was Rs 17649.39 Crore and total numbers of contracts for stock options were 53540 and notional turnover was Rs 773.45 Crore.

Today, Nifty would have a support at 3,120 and resistance at 3,325 and BSE Sensex has support at 10,250 and resistance at 10,750.

1 comment:

Anonymous said...

Nice dispatch and this fill someone in on helped me alot in my college assignement. Gratefulness you seeking your information.