Pre Session Commentary - Nov 10 2008

Today a market is expected to have positive opening on favorable global cues. The market looks strong as US markets ended with gains and the Asian markets made are trading higher. On Friday, Domestic market closed in green after showing volatility during the first half of the trading on significant buying over the ground. The Indian market opened on downbeat note and soon turned choppy on the back of negative cues from the US markets. Market continued to swing between positive and negative territory till mid session but turned its movement and started recovering since afternoon. Further, market continued its northward journey till end to close with gains. Positive European markets, improvements on the Asian markets and a positive mood in US index futures also added to the sentiments. The BSE Sensex bounced back to 10,000 level during final trading but ended below that level and NSE Nifty closed above 2,900. From the sectoral front, the Power, PSU, Oil & Gas, Metal, Reality, Teck, IT and Bank stocks were in limelight as most of the buying was seen from these baskets. We expect that market to trade higher during the trading session.

The BSE Sensex closed higher by 230.07 points at 9,964.29 and NSE Nifty ended up by 80.35 points at 2,973. The BSE Mid Caps and Small Caps closed with gains of 36.97 points 3,355.38 and by 19.83 points at 3,900.10. The BSE Sensex touched intraday high of 10,065.37 and intraday low of 9,631.59.

Friday, the US stock market ended with gains despite weak economic and earnings data. Nonfarm payrolls declined 240,000 in October, lifting the unemployment rate to a 14-year high of 6.5% from 6.1% the month before.

The Dow Jones Industrial Average (DJIA) closed higher by 248.02 points at 8,943.81. NASDAQ index gained 38.70 points to 1,647.40 and the S&P 500 (SPX) surged 26.11 points to close at 930.99 points.

Indian ADRs ended up. In technology sector, Satyam ended higher by (10.64%) along with Infosys gained (7.97%), Wipro ended up by (6.51%) and Patni Computers closed higher by (8.79%). In banking sector ICICI Bank was up by (8.93%) and HDFC Bank gained (4.93%). In telecommunication sector, Tata Communication inclined by (4.92%), and MTNL was up by (8.42%). Sterlite Industries increased by (4.03%).

Today major stock markets in Asia are trading higher. China has announced a massive economic stimulus package worth $ 586 billion in an attempt to lift its weakening economy. Further, Taiwan cuts interest rates by 25 bps, fourth time in two months after exports dropped in October by most in three years.

Hang Seng is higher by 850.44 points at 15,093.87. Further Japan''s Nikkei added 470.90 points at 9,053.90 and Singapore''s Straits Times gained 26.21 points at 1,889.70. The Taiwan Weighted surged 2.31 points at 4,744.64 and South Korea’s Seoul Composite gained 20.41 points at 1,154.90.

The FIIs on Friday stood as net seller in equity and in debt. Gross equity purchased stood at Rs1522.90 Crore and gross debt purchased stood at Rs131.80 Crore, while the gross equity sold stood at Rs1936.90 Crore and gross debt sold stood at Rs583.90 Crore. Therefore, the net investment of equity and debt reported were (Rs414.00 Crore) and (Rs452.10 Crore) respectively.

On Friday, the Indian rupee ended at 47.65/66 per dollar, virtually unchanged from Thursday''''s close of 47.66/69. It was stuck in a narrow 47.65-47.95 band all day. The Rupee smartly recovered from early losses and closed flat, as the stock market rallies encouraging investors to sell dollars at higher levels on expectations of renewed capital inflows.

On BSE, total number of shares traded was 28.71 Crore and total turnover stood at Rs. 3,458.24 Crore. On NSE, total volume of shares traded was 59.79 Crore and total turnover was Rs 9,254.54 Crore.

Top traded volumes on NSE Nifty – Suzlon Energy with total traded volume of 56379476 shares, followed by Unitech Ltd with 19783631 shares, Hindalco with 16565508 shares, RPL with 13502488 shares and Tata Steel with 12510935 shares respectively.

On NSE Future and Options, total numbers of contracts traded in index futures were 920834 with a total turnover of Rs.12,640.35 Crore. Along with this total number of contracts traded in stock futures were 855955 with a total turnover of Rs.9,203.69 Crore. Total numbers of contracts for index options were 960095 and total turnover was Rs.14,647.02 Crore and total numbers of contracts for stock options were 42397 and notional turnover was Rs.472.26 Crore.

Today, Nifty would have a support at 2,927 and resistance at 3,152 and BSE Sensex has support at 9,736 and resistance at 10,550.