Pre Session Commentary - Apr 15 2009

Today domestic markets are likely to open positive despite majority of Asian markets have opened negative. The Infosys results have been phenomenal as they have recorded a phenomenal growth in topline and bottom line by 29.50% and 30.18%. The IT stocks may be in the limelight on the back of the better than expected results of Infosys.

On Monday, domestic markets recorded seventh consecutive gains. Nevertheless after a positive gap opening the domestic markets dipped the base line. The sentiments across Asian markets were positive however Japanese markets ended in red due to drastic deflation of 2.2% in wholesale prices which is considered to be the worst since May 2002. After a phenomenal post mid session rally the domestic markets pared off its early gains due to profit booking pressures. Sensex spurred incredibly to break the 11k mark. In the Sectoral indices Metal, Bankex, Realty, PSU and Auto witnessed huge buying as they gained 5.49%, 5.07%, 4.14%, 3.16% and 2.73% respectively. However on the other hand sectors like CD, IT and FMCG suffered selling pressures. Smallcap and Midcap stocks have once again stolen the charm of the day from the heavyweights. During the session we expect the markets to be trading positive with an essence of mild volatility.

The BSE Sensex closed with gain of 163.36 points at 10,967.22 and NSE Nifty ended with gain of 40.55 at 3,382.60. BSE Mid Caps and BSE Small Caps ended with gains of 106.57 points and 147.61 points at 3,464.92 and 3,915.16 respectively. The BSE Sensex touched intraday high of 11,069.54 and intraday low of 10,800.84.

Tuesday, the US stock markets ended in red led by financial stocks that fell out of favor and disappointing retail sales data. However the earnings results fell to provide any leadership today. The financial stocks ended the session with a 7.7% loss after Goldman Sachs announced a $5 billion common equity offering that was discounted from the prior session''s closing price. US light crude oil futures for May delivery traded in a range between $48.85 and $51.12 per barrel during the session and finally closed the session down by 1.3% at $49.41 per barrel on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) dropped by 137.63 points to close at 7,920.18. The NASDAQ Composite (RIXF) index decreased by 27.59 points to close at 1,625.72 and the S&P 500 (SPX) fell by 17.23 points to close at 841.50.

Today major stock markets in Asia are trading negative. Shanghai composite low by 13.12 points at 2,514.06. Hang Seng is trading low by 298.45 points at 15,281.71 followed by Japan''s Nikkei which is low by 107.25 points at 8,735.43, Strait Times is low by 39.46 points at 1,857.56. While Taiwan Weighted is also low by 35.15 points at 5,857.53 and Seoul Composite points is also low by 21.19 points at 1,321.44 respectively.

Indian ADRs ended mostly lower. In technology sector, Infosys ended down by 2.44% along with Wipro by 3.54%. Further, Patni Computers lost 3.01% and Satyam closed lower by 11.11%. In banking sector ICICI Bank and HDFC Bank lost 4.07% and 1.98% respectively. In telecommunication sector Tata Communication and MTNL advanced by 3.40% and 1.75% respectively. Sterlite Industries decreased by 3.50%.

The FIIs on Friday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 2,101.80 Crore and gross debt purchased stood at Rs 288.20 Crore, while the gross equity sold stood at Rs 2,011.20 Crore and gross debt sold stood at Rs. 585.10 Crore. Therefore, the net investment of equity and debt reported were Rs 90.60 Crore and Rs (296.60) Crore respectively.

On Thursday, the Rupee closed at Rs. 50.02/03, 0.38% stronger than its previous close of Rs. 50.19/20. The local currency closed stronger due to expectations of green back inflow as domestic stock markets are continuously rising.

On BSE, total number of shares traded were 57.58 Crore and total turnover stood at Rs 5,420.30 Crore. On NSE, total number of shares traded was 116.69 Crore and total turnover was Rs 15,397.98 Crore.

Top traded volumes on NSE Nifty – Unitech with 86624055 shares, Suzlon Energy with 52235926 shares, Tata Steel with 17672347 shares, DLF with 14394818 shares followed by SAIL with 13293216 shares.

On NSE Future and Options, total number of contracts traded in index futures was 751978 with a total turnover of Rs 12,097.16 Crore. Along with this total number of contracts traded in stock futures were 474913 with a total turnover of Rs 17,041.72 Crore. Total numbers of contracts for index options were 1238851 with a total turnover of Rs 20,862.92 Crore and total numbers of contracts for stock options were 44968 and notional turnover was Rs 1,686.30 Crore.

Today, Nifty would have a support at 3,343 and resistance at 3,421 and BSE Sensex has support at 10,870 and resistance at 11,098.