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Monday, January 22, 2007

Market may move higher


The activity in the market is likely to be stock specific. Volatility may remain high ahead of the expiry of January 2007 futures contracts on Thursday (25 January 2007). According to a technical analyst with a domestic brokerage, the Sensex has strong resistance at 14,220, and may succumb to selling around this level. It needs to close above this level to resume the upward journey, he reckons. According to a dealer with a domestic brokerage, the market may see some minor technical corrections in bullish trend.

The major December 2006 quarter scheduled today are car major Maruti Udyog, Dr Reddy’s Lab, India Cements and National Aluminium Company.

FIIs have resumed buying after their heavy sales earlier during the month. Their net inflow was Rs 111.90 crore on Thursday (18 January). FIIs were net buyers in five out of six trading sessions, from 11 January to 18 January. As per provisional data, FIIs were net buyers to the tune of Rs 125 crore on Friday (19 January).

FIIs were net sellers to the tune of Rs 553 crore in index-based futures on 19 January. They were net sellers to the tune of Rs 91 crore in individual stock futures on that day.

Asian stocks edged higher on Monday following a recovery in oil and metal prices. Key benchmark indices in Hong Kong, Japan, Singapore and Taiwan were up between 0.2 - 1.8%

US stocks were mostly lower on Friday (19 January) as higher oil prices helped offset disappointing earnings. The Dow Jones industrial average slipped 2.40 points, or 0.02%, at 12,565.53 while the Standard & Poor's 500 Index rose 4.13 points, or 0.29%, at 1,430.50. The Nasdaq Composite Index advanced 8.10 points, or 0.33%, at 2,451.31.

Oil rose above $52 a barrel on Monday after falling temperatures in the US Northeast -- that drove up prices last week -- prompted investors to speculate that the colder weather would also hit Europe, boosting fuel demand. NYMEX crude for February delivery was up 56 cents, or more than 1%, at $52.55 a barrel.