May 2008 derivatives expiry to keep the market volatile

The market is likely to exhibit volatile movements today, 29 May 2008 as May 2008 series futures & options are set for expiry today. As per reports, rollover of Nifty positions from May 2008 series to June 2008 series stood at 57% as compared to 62% in the April 2008 to May 2008 series, as on 28 May 2008. However marketwide rollovers were healthy, at 62% as compared 61% in the previous series.

Global cues were positive. In absence of any near term major domestic trigger with Q4 March 2008 results almost over, market is likely to dance in line with global cues.

However in June 2008, markemen would be looking at two triggers. One would be progress of monsoon and second would be the advance tax figures.

Asian markets were trading higher today, 29 May 2008. Shanghai Composite (up 0.22% at 3,466.78), Japan's Nikkei (up 2.80% at 14,092.72), Hang Seng (up 0.91% at 24,470.65), Taiwan Weighted (up 0.87% at 8,740.79), Singapore's Straits Times (up 0.89% at 3,160.62) and South Korea's Seoul Composite (up 1.75% at 1,837.32), edged higher.

US markets ended higher yesterday, 28 May 2008, after a volatile session lead by better-than-forecast durable goods orders and positive financial results from select retailers. The Dow Jones industrial average gained 46 points to 12,594. The Nasdaq Composite index rose 5 points to 2,487. The S&P 500 index garnered 5 points to 1,390.10

Back home, a sharp fall in crude oil prices firm global cues and short covering in late trade, propelled the market yesterday, 28 May 2008. The 30-share BSE Sensex rose 249.78 points or 1.53% at 16,525.37 and the broader based S&P CNX Nifty was up 58.55 points or 1.20% at 4918.35, on that day.

As per provisional data, foreign funds sold shares worth a net Rs 883.23 crore yesterday, 28 May 2008. Domestic funds bought shares worth a net Rs 527.98 crore on that day.

Foreign institutional investors (FIIs) were net buyers of Rs 1503.25 crore in the futures & options segment yesterday, 27 May 2008. They were net buyers of index futures to the tune of Rs 522.92 crore and bought index options worth Rs 643.08 crore. They were net buyers of stock futures to the tune of Rs 236.44 crore and bought stock options worth Rs 100.81 crore.

U.S. crude fell 76 cents to $130.27 a barrel, while London Brent crude fell 83 cents to $130.10 a barrel today, 29 May 2008, as a strengthening dollar more than offset fears of supply disruptions in Nigeria.