Pre Market Watch - May 23 2008

The Indian Market is likely to open positive on the back of favorable global cues as the US market closed in green and the Asian markets are trading mixed. On Thursday, the Indian market closed in deep red on the back of heavy selling pressure across key sectors. The investors’ sentiment was week as the international oil prices reached a new high of above $135 per barrel and rising inflation fear was making whole scenario more panic. The market opened on the weak note tracking the negative global cues and hovering in the negative territory till the end of trading. IT shares gained after Indian rupee reached to the level of 43 but were not able to sustain the momentum till the end of trading. Capital goods and metal were not in favour as they witnessed heavy selling pressure. The BSE Sensex closed lower by 336.05 points at 16,907.11 and NSE Nifty fell by 92.2 points to close at 5,025.45. We expect that the volatility may grip the market, as the inflation figure is due today.

On Thursday, the US market closed in green. The Dow Jones Industrial Average (DJIA) closed higher by 24.43 points at 12,625.62 along with NASDAQ up by 16.31 points to close at 2,464.58 and S&P 500 advanced by 3.64 points to close at 1,390.71.

Indian ADRS ended mixed. In technology sector Wipro ended up by (1.77%) along with Satyam by (1.09%), Infosys by (0.66%) and Patni Computers by (0.39%). In banking sector, HDFC bank advanced by (2.15%) while ICICI bank slipped by (0.22%). In telecommunication sector, Tata Communication went up by (0.02%) and MTNL decreased by (0.06%). Sterlite industries declined by (0.81%).

Today the major stock markets in Asia are trading mixed. Japan’s Nikkei is trading higher by 102.50 points at 14,080.96 along with Hang Seng index trading up by 73 points at 24,970.12 while Taiwan Weighted trading at 8,956.56 down by 51.47 points. Asian markets are trading mixed after yesterday’s fall due to unexpected reduction in the weekly unemployment figure of US to the lowest level in a month and dollar value which becomes stronger against yen.

The FIIs Thursday stood as net seller in equity. The gross equity purchased was Rs2,830.30 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,441.70 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs611.40) Crore and net debt was Rs0.00 Crore.

Today, Nifty has support at 4,936 and resistance at 5,105 and BSE Sensex has support at 16,625 and resistance at 17,278.