Pre Session Commentary - Oct 29 2008

Today a market is expected to have gap up opening on strong global cues. The US markets ended with huge gains and the Asian markets made are trading significantly higher after a positive opening. On Tuesday, domestic market opened the Muhurat trading session with handsome gains in line global markets. The BSE Sensex and the NSE Nifty both opened with a gap up of more than 5% each. Market extended its gains till the end of session. BSE Sensex ended above the favoulous 9,000 mark and the NSE Nifty above the 2,650 mark. The buying support was seen across all the sectorial indices mainly led by the Realty, Metal, Power Capital Goods, Oil & Gas and Auto stocks. The positive Asian Markets and the European markets along with the relaxing of norms of creeping acquisition norms for promoters by SEBI had provided the support to the market. . We expect that market may gain further ground during the trading session. Investors will also eye on F&O expirery.

The BSE Sensex closed higher by 498.52 points at 9,008.08 and NSE Nifty ended up by 160.40 points at 2,684.60. The BSE Mid Caps and Small Caps closed with gains of 191.23 points at 3,157.46 and by 232.77 points at 3,77.61. The BSE Sensex touched intraday high of 9,056.97 and intraday low of 8,909.34.

Tuesday, the US stock market ended with strong gains with the Dow surging 889 points on bargain hunting and short covering. Strong rebound in other global market also added to the positive sentiments. However, consumer confidence plunged 23.4 to 38.0 in October, according to the Conference Board''s survey. Along with this, August home prices in 20 major metro areas fell 16.6% year-over-year, according to the S&P/Case-Shiller Index. Further Fed is expected to cut interest rate in its meeting today. Crude oil futures for the December delivery fell $0.49 or 0.8% to $62.73 a barrel on New York Mercantile Exchange. Crude oil fell to 17-month low, after a report showed that U.S. consumer confidence dropped to the weakest level on record in October.

The Dow Jones Industrial Average (DJIA) closed higher by 889.35 points at 9,065.12. NASDAQ index gained 143.57 points to 1,649.47 and the S&P 500 (SPX) surged 91.59 points to close at 940.51 points.

Indian ADRs ended up. In technology sector, Wipro ended higher by (22.84%) and Satyam gained (16.83%), Infosys ended up by (15.55%) and Patni Computers closed higher by (4.96%). In banking sector ICICI Bank was up by (18.96%) and HDFC Bank gained (16.17%). In telecommunication sector, Tata Communication inclined by (23.45%), and MTNL was up by (13.43%). Sterlite Industries increased by (21.55%).

Today major stock markets in Asia are trading higher. Japan''s Nikkei is higher by 487.42 points at 8,109.34. Further Hang Seng advanced 348.12 points at 12,944.41. Taiwan Weighted is also up by 106.99 points at 4,506.96. The Straits Times surged 38.01 points at 1,704.50 and South Korea’s Seoul Composite advanced 32.98 points at 1,032.14.

The FIIs on Monday stood as net seller in equity and in debt. Gross equity purchased stood at Rs2284.10 Crore and gross debt purchased stood at Rs25.00 Crore, while the gross equity sold stood at Rs3462.10 Crore and gross debt sold stood at Rs240.90 Crore. Therefore, the net investment of equity and debt reported were (Rs1178.00 Crore) and (Rs215.90 Crore) respectively.

On Monday, the partially convertible rupee ended higher at 49.88 per dollar, against Friday’s close of 49.95. India''s rupee rebounded from its earlier low on speculation that the central bank bought the currency to stem losses.

On BSE, total number of shares traded was 7.14 Crore and total turnover stood at Rs. 679.93 Crore. On NSE, total volume of shares traded was 12.51 Crore and total turnover was Rs 1,557.10 Crore.

Top traded volumes on NSE Nifty – Unitech Ltd with total traded volume of 10127095 shares, followed by Suzlon Energy with 7692434 shares, IFCI with 7403533 shares, Hindalco with 4816609 shares and Reliance Natural Resources with 4134324 shares respectively.

On NSE Future and Options, total numbers of contracts traded in index futures were 311629 with a total turnover of Rs.3,969.41 Crore. Along with this total number of contracts traded in stock futures were 235084 with a total turnover of Rs.2,237.47 Crore. Total numbers of contracts for index options were 288416 and total turnover was Rs.4,088.39 Crore and total numbers of contracts for stock options were 5160 and notional turnover was Rs.58.09 Crore.

Today, Nifty would have a support at 2,624 and resistance at 2,826 and BSE Sensex has support at 8,760 and resistance at 9,420.