Pre Session Commentary - Nov 4 2008

Today a market is expected to have negative opening on mixed global cues. US markets ended mixed on Monday and today Asian markets are trading mostly lower. On Monday, Indian market continued its momentum on significant buying interest supported by the RBI’s triple dose of cut in its benchmark interest rates like repo rate, CRR and SLR. Contribution of the firm global cues was also important. Prime Minister''s assurance that Indian banks were safe and the government will take all necessary steps to keep the economy protected from the global financial turmoil, also gave a boost to the market. The NSE Nifty ended above 3,000 level and BSE Sensex above 10,300 mark. Today market opened on strong note tracking firm cues from the both domestic and global markets. Further, stocks continued to gain ground till end to close the day sharply higher. From the sectoral from front, all indices ended in green and buying was seen mainly in the Reality, Capital Goods, Bank, Power, Oil & Gas, Metal and FMCG stocks. Mid Cap and Small Cap stocks also ended higher with gains of more than 4% each. We expect that the profit booking may take a lead during the trading session.

The BSE Sensex closed higher by 549.62 points at 10,337.68 and NSE Nifty ended up by 158.25 points at 3,043.85. The BSE Mid Caps and Small Caps closed with gains of 155.52 points 3,355.54 and by 161.99 points at 3,927.10. The BSE Sensex touched intraday high of 10,373.17 and intraday low of 10,112.66.

Monday, the US markets end mixed after swinging between positive and negative terrain ahead of the presidential election. U.S. manufacturing activity in October fell 4.6 to 38.9 in October, the lowest level since 1982, according to the ISM Index survey. However, credit markets continued to show improvement. Crude oil futures for the December delivery fell $ 3.90 to $63.91 a barrel on New York Mercantile Exchange.

The NASDAQ index closed higher by 5.32 points at 1,726.33. However, Dow Jones Industrial Average (DJIA) index lost 5.18 points to 9,319.83 and the S&P 500 (SPX) ended down by 2.45 points to close at 966.30 points.

Indian ADRs ended mixed. In technology sector, Patni Computers ended higher by (3.45%) along with Wipro gained (3.36%), while Infosys ended down by (2.66%) and Satyam closed lower by (0.25%). In banking sector ICICI Bank was up by (4.73%) and HDFC Bank gained (4.89%). In telecommunication sector, Tata Communication declined by (9.84%), while MTNL was up by (5.39%). Sterlite Industries decreased by (7.75%).

Today major stock markets in Asia are trading mostly lower. Hang Seng is down by 387.62 points at 13,956.75. Further Taiwan Weighted plunged 84.05 points at 4,91.01 and Singapore''s Straits Times also lost 52.84 points at 1,830.91. The South Korea’s Seoul Composite tumbled 5.9 points at 1,123.18. However, Japan''s Nikkei gained 320.89 points at 8,897.87.

The FIIs on Monday stood as net buyer in equity and net seller in debt. Gross equity purchased stood at Rs4111.10 Crore and gross debt purchased stood at Rs74.70 Crore, while the gross equity sold stood at Rs2927.90 Crore and gross debt sold stood at Rs298.70 Crore. Therefore, the net investment of equity and debt reported were Rs1183.20 Crore and (Rs224 Crore) respectively.

On Monday, the Indian rupee ended two weeks high at 48.64/65 from 49.44/46 at close on Friday. India''s rupee strengthened as broad dollar weakness helped sentiment for the local unit and gains in domestic shares revived hopes for fresh capital inflows.

On BSE, total number of shares traded was 30.07 Crore and total turnover stood at Rs. 3,679.49 Crore. On NSE, total volume of shares traded was 61.92 Crore and total turnover was Rs 10,106.41 Crore.

Top traded volumes on NSE Nifty – Suzlon Energy with total traded volume of 36232944 shares, followed by Unitech Ltd with 24686112 shares, RPL with 15685468 shares, Reliance Communication with 13611748 shares and Hindalco with 12102862 shares respectively.

On NSE Future and Options, total numbers of contracts traded in index futures were 834962 with a total turnover of Rs.11,736.66 Crore. Along with this total number of contracts traded in stock futures were 768238 with a total turnover of Rs.8,542.13 Crore. Total numbers of contracts for index options were 840575 and total turnover was Rs.13,314.72 Crore and total numbers of contracts for stock options were 42,771 and notional turnover was Rs.520.42 Crore.

Today, Nifty would have a support at 2,916 and resistance at 3,112 and BSE Sensex has support at 9,929 and resistance at 10,631.