Wednesday, December 3, 2008

Pre Session Market - Dec 03, 2008

Today Markets are likely to open with a positive gap as US markets have rolled back into phenomenal gains and Asian markets are also moving positive. The consecutive fall in the markets are now likely to pare off losses and gain some momentum during the day’s trading. However volatility may creep during the later trading session amidst profit booking and cautious sentiments. On the macro economic front, there are anticipations that the government may reduce the interest rates and bring some incentives to propel the exports. The current political drama in the country may not hamper the market sentiments to that extent but any major political news could influence.

On Tuesday, the markets opened with a negative gap as anticipated due to global markets meltdown. The fall in the markets was inevitable due to the fact that US recession was officially stated. Throughout the day markets were looming in deep red until the evening session when it managed to pair off some losses. The Asian and European markets also traded with weak sentiments due to US economy concerns. The Sensex closed with a loss of 1.14% whereas, Nifty shed 0.94% respectively. Auto, CD, Oil & Gas and IT fell by 3.04%, 2.61%, 2.45% and 2.27% respectively. During the trading session we expect the market to be trading in green.

The BSE Sensex closed low by 100.63 points at 8,739.24 and NSE Nifty ended lower by 25.10 points at 2,657.80. The BSE Mid Caps and Small Caps ended with losses of 41.14 points and 45.32 points at 2,805.33 and 3,252.41. The BSE Sensex touched intraday high of 8,785.04 and intraday low of 8,467.43.

On Tuesday, the US markets rolled back to end in green. After a brutal hack on Monday the US markets gained some momentum. General Electric performed well as the company’s fourth quarter earnings is anticipated to be better than expected. General Motors also gained on the back of news that the company has asked for a bail out plan of $12 billion term loan and $6 billion of credit in case the downturn persist. The Fed has also stated that it would extend three liquidity facilities through April 30, 2009 to liquidate the shrunken financial market. Crude oil on New York Mercantile Exchange for January fell by $2.32 to $46.96 a barrel. Investors are of the fear that the world wide recession would bring down the oil consumption and demand to low levels.

The Dow Jones Industrial Average (DJIA) closed higher by 270 points at 8,419.09 NASDAQ index gained 51.73 points at 1,449.80 and the S&P 500 (SPX) also closed higher by 32.60 points to close at 848.81 points.

Indian ADRs ended in green. In technology sector, Infosys gained by 3.47% and Wipro ended high by 3.09% followed by Satyam that ended gained by 4.49% and Patni Computers closing high by 4.80%. In banking sector ICICI Bank gained 7.14%, while HDFC Bank gained 6.08%. In telecommunication sector, Tata Communication inclined by 1.73%, while MTNL inclined by 5.63%.

Today the major stock markets in Asia opened positive. The Shanghai Composite is trading high by 26.26 at 1,915.90 Hang Seng is high by 241.63 points at 13,647.48. Further Japan''s Nikkei is high by 77.29 points at 7,940.98. Straits Times is also trading high by 24.38 points at 1,663.56 and South Korea’s Seoul Composite is high by 0.46 points at 1,023.66.

The FIIs on Tuesday stood as net buyer in equity and net sellers in debt. Gross equity purchased stood at Rs 1663.30 Crore and gross debt purchased stood at Rs 322.30 Crore, while the gross equity sold stood at Rs 1509.40 Crore and gross debt sold stood at Rs 573.60 Crore. Therefore, the net investment of equity and debt reported were Rs 153.90 Crore and Rs (251.30) Crore respectively.

On Tuesday, the partially convertible rupee ended at 50.15/16 per dollar, 0.3% stronger than Monday''s close of 50.30/32. The rupee gained some strength after central bank’s intervention and dollar sales by private and foreign banks.

On BSE, total number of shares traded was Rs 21.09 Crore and total turnover stood at Rs 2,603.16 Crore. On NSE, total volume of shares traded was Rs 46.81 Crore and total turnover was Rs 7,607.78 Crore.

Top traded volumes on NSE Nifty – Unitech with 70848820 shares, Suzlon Energy with total volume traded 27667581 shares, followed by DLF with 13565653 shares, NTPC with 12503705 shares and ICICI Bank with 10538908 shares.

On NSE Future and Options, total number of contracts traded in index futures was 984552 with a total turnover of Rs 11,892.69 crores. Along with this total number of contracts traded in stock futures were 804707 with a total turnover of Rs 7,773.47 Crore. Total numbers of contracts for index options were 953447 with a total turnover of Rs 13,351.32 Crore and total numbers of contracts for stock options were 43349 and notional turnover was Rs 454.01 Crore.

Today, Nifty would have a support at 2,595 and resistance at 2,788 and BSE Sensex has support at 8,690 and resistance at 9,050.

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