Wednesday, November 12, 2008

Pre Session Market - Nov 12, 2008

Today Markets are likely to open negative as the US markets ended in red amidst concerns of economic slowdown estimates and further the other Asian markets today opened with blood bath. After yesterdays shattering trade today one could observe a little bounce back, however the IIP numbers would play a crucial role. Analysts are pessimistic about the IIP numbers and therefore any weak IIP numbers may further deteriorate the sentiments. Investors would be little cautious in approach and therefore the market is likely to trade in red.

On Tuesday, domestic Markets opened with a negative gap and further dived into deep red territory. The Chinese bail out plan had little to inspire domestic investors. The markets across Asia and Europe were trading in deep red and hence investors across the globe were trapped in negative sentiments. Sensex and Nifty fell by huge losses of 6.61% and 6.66% respectively. Realty fell the highest by 10.25% however Metal and Power faced profit booking recording losses of 8.42% and 7.70% respectively. During the trading session we expect the market to trade in red.

The BSE Sensex closed lower by 696.47 points at 9839.69 and NSE Nifty ended lower by 209.6 points at 2,938.65. The BSE Mid Caps and Small Caps closed with losses of 118.39 points at 3,356.70 and by 100.02 points at 3,888.01. The BSE Sensex touched intraday high of 10,405.39 and intraday low of 9,799.45.

On Tuesday, US markets closed in red on the back of poor estimates about the economic outlook. The Government is also planning to modify some GSE mortgages in an effort to prevent foreclousers. The American express has got the approval to convert into a bank holding company, which will further give it easy access to funds. Crude oil futures for the December delivery fell $1.17 to $59.33 a barrel on New York Mercantile Exchange. It also touched 20 months low of $59.10 a barrel. Despite OPEC’s announcement of cutting the oil production by 1.1 million barrels a day, the poor demand for crude seems to be pulling it.

The Dow Jones Industrial Average (DJIA) closed lower by 176.58 points at 8693.96 NASDAQ index lost 35.84 points at 1,580.90 and the S&P 500 (SPX) also fell by 20.23 points to close at 898.95 points.

Indian ADRs ended negative. In technology sector, Infosys lost (4.65%) and Wipro fell by (3.17%) followed by Satyam that ended low by (5.73%) and Patni Computers closing low by (4.84%). In banking sector ICICI Bank was low by (11.26%), while HDFC Bank fell (8.60%). In telecommunication sector, Tata Communication declined by (4.77%), while MTNL was low by (6.88%). Sterlite Industries was low by (7.05%).

Today the major stock markets in Asia opened negative. The Shanghai Composite is trading flat at 1,828.558. Hang Seng is low by 365.35 points at 13,675.55. Further Japan''s Nikkei is low by 115.25 points at 8,694.05. Straits Times is also trading low by 24.39 points at 1,782.57 and South Korea’s Seoul Composite is low by 11.49 points at 1,117.24.

The FIIs on Tuesday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 1651.70 Crore and gross debt purchased stood at Rs 645.00 Crore, while the gross equity sold stood at Rs 1516.10 Crore and gross debt sold stood at Rs 0.00 Crore. Therefore, the net investment of equity and debt reported were Rs 135.50 Crore and Rs 645.00 Crore respectively.

On Tuesday, the partially convertible rupee ended at 48.125/140 per dollar, its weakest since November 4 and 1.6% below Monday''s close of 47.35/37. The rupee fell on sharp fall in the equity market and the concerns of foreign money going out.

On BSE, total number of shares traded was 32.45 Crore and total turnover stood at Rs 3,731.03 Crore. On NSE, total volume of shares traded was 57.08 Crore and total turnover was Rs 8,821.63 Crore.

Top traded volumes on NSE Nifty – Suzlon energy with 43620267 shares followed by Unitech 18027831 shares, Reliance Comm with 13517679 shares, SAIL with 12419895 shares and Reliance Petro with 11396178 shares respectively.

On NSE Future and Options, total numbers of contracts traded in index futures were 985917 with a total turnover of Rs 13,849.75 Crore. Along with this total number of contracts traded in stock futures were 805756 with a total turnover of Rs 8,896.14 Crore. Total numbers of contracts for index options were 1107751 and total turnover was Rs 17,128.74 Crore and total numbers of contracts for stock options were 45523 and notional turnover was Rs 512.16 Crore.

Today, Nifty would have a support at 2,755 and resistance at 3,025 and BSE Sensex has support at 9,585 and resistance at 10,225.

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