Thursday, December 4, 2008

Pre Session Market - Dec 04, 2008

Today Markets are likely to open positive as US markets have ended in green and major other Asian Markets have opened with remarkable gains. Today inflation numbers are anticipated to be moderate and favourable. The government has also announced a bail out package of Rs 17,000 crore for the infrastructure and export oriented units. Further the auto sector is also on the list of consideration hence one could see the cut in excise duty. The RBI may also cut the repo and other rates to pump liquidity into the markets and also ease off the ECB norms. On the midst of positive scenario, today the markets may trade with a positive momentum; however one cannot completely ignore the volatility to creep in at later trading session.

On Wednesday, the markets opened positive but turned volatile. There was not enough support from the bulls as the sentiments looked very weak despite positive cues from Asian and European markets. The volatility continued throughout the session however towards the end Sensex and Nifty closed flat. Metal and Realty picked up 3.39% and 3.34% however IT and Tech fell by 3.08% and 2.16% respectively. During the trading session we expect the market to be trading volatile.

The BSE Sensex closed high by 8.19 points at 8,747.43 and NSE Nifty ended lower by 1.35 points at 2,656.45. The BSE Mid Caps and Small Caps ended with gains of 25.26 points and 12.69 points at 2,830.59 and 3,265.10. The BSE Sensex touched intraday high of 8,8541.81 and intraday low of 8,601.41.

On Wednesday, the US markets closed with phenomenal gains. The mortgage applications are rising as rates have come down. The Fed’s Beige book also indicates some signs of improvement in lending. The Non-farm private employment dropped by 2,50,000 in November. The homebuilders have also shown some strength as the government has planned to utilize the $500 billion to support the mortgage market. Crude oil on New York Mercantile Exchange for January fell by 17 cents to $46.79 a barrel. A report from the Energy Information Administration showed a surprise drop of 400,000 barrels of crude oil stockpiles.

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 mixed. In technology sector, Infosys fell by 0.90% and Wipro ended high by 1.95% followed by Satyam that gained by 2.43% and Patni Computers closing high by 0.35%. In banking sector ICICI Bank gained 5.61%, while HDFC Bank gained 2.60%. In telecommunication sector, Tata Communication inclined by 6.82%, while MTNL inclined by 1%.

Today the major stock markets in Asia opened mixed. The Shanghai Composite is trading high by 68.01 at 2,033.42 Hang Seng is high by 179.22 points at 13,767.88. Further Japan''s Nikkei is low by 76.36 points at 7,927.74. Straits Times is also trading high by 25.56 points at 1,666.13 and South Korea’s Seoul Composite is low by 6.62 points at 1,016.05.

The FIIs on Wednesday stood as net sellers in equity and net buyers in debt. Gross equity purchased stood at Rs 855.90 Crore and gross debt purchased stood at Rs 401.90 Crore, while the gross equity sold stood at Rs 1175.50 Crore and gross debt sold stood at Rs 166.40 Crore. Therefore, the net investment of equity and debt reported were Rs (319.60) Crore and Rs 235.50 Crore respectively.

On Wednesday, the partially convertible rupee ended at 50.00/02 per dollar, 0.15 paise stronger than Tuesday’s close of 50.15/16. The rupee gained some strength on anticipations of foreign capital inflow due to rising Asian Markets.

On BSE, total number of shares traded was Rs 22.57 Crore and total turnover stood at Rs 2,955.08 Crore. On NSE, total volume of shares traded was Rs 52.84 Crore and total turnover was Rs 8,286.23 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 970593 with a total turnover of Rs 11,786.62 crores. Along with this total number of contracts traded in stock futures were 834014 with a total turnover of Rs 8,103.39 Crore. Total numbers of contracts for index options were 947849 with a total turnover of Rs 13,209.56 Crore and total numbers of contracts for stock options were 46322 and notional turnover was Rs 506.66 Crore.

Today, Nifty would have a support at 2,595 and resistance at 2,700 and BSE Sensex has support at 8,590 and resistance at 8,915.

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