Pre Session Commentary - Oct 15 2008

Today Markets are likely to open negative on the back of some selling pressure that was seen in the later session of trading yesterday. The US markets closed negative on the back of selling pressures and the other Asian markets have also opened with negative gaps. One could expected not much movement today as in the previous two trading days the markets have already moved in huge numbers. Throughout the trading session we expect the market to be little volatile with range bound movements.

On Tuesday, domestic Markets opened with huge gap and due to profit booking after post mid session it pared off early gains and closed with a marginal gain. The sentiments in the morning was phenomenal on the back of good growth in the US and Asian Markets. Later in the trading session Metal stocks were caught by the intense selling pressure which simultaneously pared the early gains in the markets. Since the market has already gained huge numbers on Monday, it looked very obvious that on Tuesday investors would book profits. The fine opening of European markets also added good support for the domestic markets. The banking stocks became favourite in the European markets as Washington is all set to unveil its $250 billion into its banks easing off the apprehensions about banking and finance sectors across the world. In the domestic markets IT, HC, Tech, Realty, CG and Banking indices recorded moderate gains of 5.36%, 4.66%, 3.74%, 1.84% and 1.14% respectively. During the trading session we expect the market to be trading range bound.

The BSE Sensex closed at 11,309.09 registering flat gain of 174.31 points and NSE Nifty closed flat with a marginal gain of 27.95 points to close at 3,518.65. The BSE Mid Caps and Small Caps closed with gains of 61.45 points and 101.74 points at 3,892.03 and 4,615.89. The BSE Sensex touched intraday high of 11,870.22, and intraday low of 11,410.49.

On Tuesday, US markets tumbled on the back of selling pressures with profit booking. The markets had earlier gained huge numbers hence investors traded in cautious note. The quarterly numbers of Johnson & Johnson were better than the estimates, however Pepsico reported smaller than expected numbers. The US Treasury is all set to buy up to $250 billion in preferred stock of qualifying US financial institutions. The investors were still skeptic about the economic slowdown and the consequent adversary effects.

The Dow Jones Industrial Average (DJIA) closed with a fall of 76.62 points at 9310.99. NASDAQ index fell by 65.24 points at 1779.01 and the S&P 500 (SPX) also declined by 5.34 points to close at 998.01 points.

Indian ADRs ended mixed. In technology sector, Wipro gained by (2.55%) followed by Satyam that ended high by (0.66%) and Patni Computers was low by (1.86%). In banking sector ICICI Bank was low by (13.07%), while HDFC Bank fell (0.94%). In telecommunication sector, Tata Communication declined by (2.74%), while MTNL fell by (2.97%). Sterlite Industries was also low by (5.60%).

Today the major stock markets in Asia opened negative. The Shanghai Composite is low by 30.59 points, trading at 1,986.73 and the Hang Seng is low by 378.26 points at 16,454.62. Further Japan''s Nikkei is low by 156.74 points at 9,290.83. Straits Times is trading is also trading low by 35.65 points at 2,092.66 and South Korea’s Seoul Composite is low by 28.81 points at 1,338.88.

The FIIs on Tuesday stood as net sellers in equity and Debt. Gross equity purchased stood at Rs3150.80 Crore and gross debt purchased stood at Rs403.50 Crore, while the gross equity sold stood at Rs3993.00 Crore and gross debt sold stood at Rs779.90 Crore. Therefore, the net investment of equity and debt reported were (Rs842.20 Crore) and (Rs.376.40 Crore) respectively.

On Tuesday, the partially convertible Indian Rupee ended at 48.10 per dollar, off a high of 47.58, but 15 paise stronger than 48.25/27 at the close on Monday. It trimmed gains in final trading after the stock market came off the day''s high.

On BSE, total number of shares traded were 30.22 crores and total turnover stood at Rs4,252.13. On NSE, total volumes of shares traded were 58.80 crores and total turnover was Rs11,845 Crore.

Top traded volumes on NSE Nifty – ICICI bank with total traded volume of 20682919 shares, followed by Unitech with 9830116 shares, Reliance Comm with 9811309 shares, Suzlon Energy 9761603 shares and Reliance Petro with 8353293 shares respectively.

On NSE Future and Options, total number of contracts traded in index futures was 893925 with a total turnover of Rs15052.93 Crore. Along with this total number of contracts traded in stock futures were 892522 with a total turnover of Rs11437.73 Crore. Total number of contracts for index options was 1066885 and total turnover was Rs20037.05 Crore and total number of contracts for stock options was 51294 and notional turnover was Rs750.34 Crore.

Today, Nifty would have a support at 3,420 and resistance at 3,625 and BSE Sensex has support at 11,250 and resistance at 11,750.