Wednesday, November 26, 2008

Pre Session Market - Nov 26, 2008

Today markets are likely to open positive as it had closed in red yesterday after a volatile trade. The US markets have closed mixed however the major Asian markets have opened with positive gains. The trading today may again be volatile as investors are little cautious in their holdings and there has been a tug of war between the bears and bulls in the previous trading days. There are no major positive events that would help sustain the positive trend and hence we expect the markets to trade volatile.

On Tuesday, domestic markets opened with a phenomenal positive gap but later during the trading session it could not sustain the relentless selling pressures. Sensex moved 500 points showing extreme volatility. After the post mid session bears took the markets between their claws and pulled it in the red zone. Asian markets and European markets had good positive momentum and therefore ended with positive mark. On the other hand Sensex ended with a loss of 2.33% whereas, Nifty closed with a fall of 2% respectively. Oil & Gas, CG, Realty and Bankex suffered the selling heat as they lost 3.86%, 2.56%, 2.51% and 2.01% respectively. During the trading session we expect the market to be trading volatile.

The BSE Sensex closed low by 207.59 points at 8,695.53 and NSE Nifty ended lower by 54.25 points at 2654.00. The BSE Mid Caps and Small Caps closed with losses of 29.70 points at 2,872.59 and by 30.54 points at 3,333.42. The BSE Sensex touched intraday high of 9,182.80 and intraday low of 8,649.40.

On Tuesday, the US markets traded choppy and therefore ended mixed. Consumer confidence rose large than expected amount in November but still it remains at a depressed state. During November consumer confidence improved by 6.1 to 44.9 from October. Home prices are still falling as prices in 20 major metro cities fell by 17.4% in September. On the other hand Fed has planned to purchase $600 billion in direct obligations and mortgage-backed securities. Besides that Fed will also lend $200 billion in Assets Backed Securities Loan to help facilitate the issuance of asset-backed securities. Crude oil futures for the January delivery rose by 31 cents to $51.08 a barrel on New York Mercantile Exchange. The new $US 800 billion Fed package has brought some shine in the stock markets as well as helped to push oil prices.

The Dow Jones Industrial Average (DJIA) closed higher by 36.08 points at 8,479.47 NASDAQ index fell 7.29 points at 1,464.73 and the S&P 500 (SPX) also closed higher by 5.58 points to close at 857.39 points.

Indian ADRs ended mixed. In technology sector, Infosys fell by (7.29%) and Wipro ended low by (3.75%) followed by Satyam that ended low by (3.75%) and Patni Computers closing high by (4.58%). In banking sector ICICI Bank was low by (2.15%), while HDFC Bank fell 1.04%. In telecommunication sector, Tata Communication inclined by (15.95%), while MTNL declined by 1.97%. Sterlite Industries was low by 2.18%.

Today the major stock markets in Asia opened mixed. The Shanghai Composite is trading high by 6.81 at 1,895.53 Hang Seng is high by 398.60 points at 13,277.20. Further Japan''s Nikkei is low by 33.16 points at 8,290.17. Straits Times is also trading high by 17.48 points at 1,670.73 and South Korea’s Seoul Composite is high by 40.49 points at 1,023.81.

The FIIs on Tuesday stood as net sellers in equity and net buyers in debt. The Gross equity purchased stood at Rs 1080.00 Crore and gross debt purchased stood at Rs 203.60 Crore, while the gross equity sold stood at Rs 1,391.40 Crore and gross debt sold stood at Rs 176.30 Crore. Therefore, the net investment of equity and debt reported were (Rs 311.50) Crore and Rs 27.30 Crore respectively.

On Tuesday, the partially convertible rupee ended at 49.93/95 per dollar, stronger by 0.3% on Monday’s closing at 50.09/10. The weaker position of Dollar against some other currencies helped Rupee to gain.

On BSE, total number of shares traded was 22.65 Crore and total turnover stood at Rs 3,196.07 Crore. On NSE, total volume of shares traded was 52.49 Crore and total turnover was Rs 8,463.43 Crore.

Top traded volumes on NSE Nifty – Unitech with 32337821 shares, Suzlon Energy with total volume traded 30692385 shares, followed by DLF with 11779321 shares, ICICI Bank with 10599632 shares and SAIL with 10375186 shares.

On NSE Future and Options, total number of contracts traded in index futures was 1153477 with a total turnover of Rs 14,827.49 crores. Along with this total number of contracts traded in stock futures were 1291506 with a total turnover of Rs 13,119.52 Crore. Total numbers of contracts for index options were 1148751 with a total turnover of Rs 16243.69 Crore and total numbers of contracts for stock options were 37183 and notional turnover was Rs 421.74 Crore.

Today, Nifty would have a support at 2,569 and resistance at 2,740 and BSE Sensex has support at 8,350 and resistance at 8,735.

No comments: