Pre Session Commentary - Jan 28 2009

Today the markets are likely to open positive. The sentiments are strong and there has been good rally today morning in other major Asian markets like Nikkei, Strait Times and Seoul Composite. Though the RBI has left the key rates unchanged, which was rather anticipated had little impact on the market sentiments yesterday. And therefore one could further anticipate trend prevailing in today’s market with an essence of mild volatility. After continuous fall in the last week, this week had begun with phenomenal buying on broader level.

On Tuesday, the markets ended with phenomenal gains. The rally was supported by the recovery made by Nikkei and also the US markets closing with gains for second consecutive trading session. As expected the RBI kept its key rates unchanged, however it had no impact on the market sentiments. Sectors like Metal, Power, Teck, IT and Oil & Gas closed with phenomenal gains of 5.55%, 4.66%, 4.39%, 4.05% and 3.35% respectively. The rally was witnessed on a broader level and sustained the sentiments till the end. Sensex managed to close above the 9000 mark. Mid caps and Small caps gained 0.62% and 0.34% respectively. During the session we expect the markets to be trading positive with mild volatility.

The BSE Sensex closed up by 329.73 points at 9,004.08 and NSE Nifty gained by 92.80 points at 2771.35. The BSE Mid Caps and Small Caps ended with gains of 17.68 points and 11 points at 2,867.87 and 3,266.54 respectively. The BSE Sensex touched intraday high of 9,021.97 and intraday low of 8,789.06.

The US markets on Tuesday closed in green. After a choppy trade the US markets were able to close on higher level for the third consecutive trading day. Financial stocks were the best performers. American Express was the out performer as the investors were expecting a lower than expected results and further there were no horrifying news of financial turbulence in the company. Steel stocks were also good performers as the industry gave better than expected results. On the other hand, more than 35 companies will declare their results before the opening bell of tomorrow’s trading session. Crude oil futures for the month of Mach delivery fell by $4.15 to $41.58 per barrel on New York Mercantile Exchange. The crude prices continue to fell for the second session as fresh economic worries that led to the believe that economic weakness will spell further erosion in energy demand.

The Dow Jones Industrial Average (DJIA) closed higher by 58.70 points at 8,174.73 NASDAQ index gained by 15.44 points at 1,504.90 and the S&P 500 (SPX) also closed higher by 9.14 points at 845.71.

Indian ADRs ended higher. In technology sector, Wipro ended up by 3.26% along with Patni Computers by 2.67%. Further Infosys ended with increase of 1.54% and Satyam closed up by 0.53%. In banking sector ICICI Bank and HDFC Bank advanced by 3.62% and 1.48% respectively. In telecommunication sector, MTNL lost 1.03% while Tata Communication gained 2.56%. Sterlite Industries increased by 9.61%.






Today major stock markets in Asia have opened positive. The Shanghai Composite and Hang Seng are closed due to New Year celebration. However Japan''s Nikkei is trading high by 29.35 points at 8,090.42. South Korea’s Seoul Composite is high by 55.36 points at 1,148.76 and Singapore’s Strait Times is also high by 55.69 points at 1,740.92.

The FIIs on Tuesday stood as net sellers in equity and debt. Gross equity purchased stood at Rs 994.50 Crore and gross debt purchased stood at Rs 179.80 Crore, while the gross equity sold stood at Rs 1,338.60 Crore and gross debt sold stood at Rs 509.90 Crore. Therefore, the net investment of equity and debt reported were Rs (344.10) Crore and Rs (330.10) Crore respectively.

On Tuesday, Indian Rupee closed at 48.94/95 per dollar, 0.7% stronger than Friday’s close of 49.27/29. The rupee gained strength on the back rally in stock market and expectations of foreign capital inflow.

On BSE, total number of shares traded were 25.82 Crore and total turnover stood at Rs 3,083.58 Crore. On NSE, total number of shares traded were 57.59 Crore and total turnover was Rs 8,296.71 Crore.

Top traded volumes on NSE Nifty – Unitech with 48122111 shares, Suzlon Energy with 15755688 shares, SAIL with 13720775 shares, Reliance Comm with total volume traded 11608929 shares followed by ICICI Bank with 9849131 shares.

On NSE Future and Options, total number of contracts traded in index futures was 959939 with a total turnover of Rs 12,382.61 Crore. Along with this total number of contracts traded in stock futures were 1341814 with a total turnover of Rs 12,766.05 Crore. Total numbers of contracts for index options were 1194394 with a total turnover of Rs 16,631.96 Crore and total numbers of contracts for stock options were 97314 and notional turnover was Rs 1,086.87 Crore.

Today, Nifty would have a support at 2,752 and resistance at 2,841 and BSE Sensex has support at 8,920 and resistance at 9,225.