Pre Session Commentary - Apr 6 2009

Today domestic markets are likely to open positive as majority of Asian markets have opened with phenomenal gains. The domestic markets may try to cope with the other markets as it was closed on Friday. There are enough buying sentiments prevailing in other markets which the domestic markets are most likely to track further. Besides the positive trend one may witness some profit booking pressures as the domestic markets have had witnessed consecutive rally in the last week.

On Thursday, the domestic markets closed with exemplary gains. The opening came with bang as anticipated on the back of Bull Run sentiments across other Asian markets. The day’s further trade carried the buying sentiments till the end and bench mark indices gained news highs for the year 2009. The G-20 meet at London has finally cast the magic spell by planning to commit $1 trillion to revive the global economy. This has brought huge relief to the investors across the globe. The buying sentiments were very strong and the stocks at broader level rallied. The European markets also helped the domestic sentiments as there was phenomenal bull trend. Sectors like Realty, Metal, Oil & Gas and CG exuded huge buying interest with gains of 9.13%, 6.85%, 5.73% and 5.32% respectively. During the session we expect the markets to be trading positive with an essence of mild volatility.

The BSE Sensex closed with gain of 446.84 points at 10,348.83 and NSE Nifty ended with gain of 150.70 points at 3,211.05. BSE Mid Caps and BSE Small Caps ended with gains of 113.62 points and 97.05 points at 3,125.42 and 3,436.92 respectively. The BSE Sensex touched intraday high of 10,432.31 and intraday low of 10,107.25.

On Friday, the US Markets closed positive despite bad news from the Labour Department. The latest job report from the Labour department could not suppress the buying sentiments amidst investors. The financial stocks rallied on the late trading session and simultaneously helped the broader markets gain. The latest data form the Labour departments shows 6,63,000 jobs were slashed in the month of March thus taking the unemployment rate to 8.5% from 8.1%. On the European markets the Royal bank of Scotland has indicated that it would take considerable cost saving measures and would also declare dividend payments. This news also helped financial stocks to trade in momentum. The US light crude oil for May delivery declined by 0.4% to settle at $52.44 a barrel on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed high by 39.51 points at 8,017.59 the NASDAQ Composite (RIXF) index inclined by 19.24 points to close at 1,621.87 and the S&P 500 (SPX) inclined by 8.12 points to close at 842.50.

Today major stock markets in Asia are trading positive. Shanghai composite is low by 5.51 points at 2,419.78. Hang Seng is trading up by 411.68 points at 14,957.37 followed by Japan''s Nikkei which is up by 162.71 points at 8,912.55, Strait Times is up by 34.83 points at 1,855.70. While Taiwan Weighted is up with gains of 78.60 points at 5,608.23 and Seoul Composite points is also up by 29.91 points at 1,313.66 respectively.

Indian ADRs ended higher. In technology sector, Infosys ended up by 1.57% along with Satyam by 10%. Further, Wipro gained 5.76% while Patni Computers closed lower by 6.83%. In banking sector ICICI Bank and HDFC Bank gained 1.39% and 2.363 respectively. However, in telecommunication sector Tata Communication and MTNL advanced by 0.69% and 0.89% respectively.

The FIIs on Thursday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 1,695.20 Crore and gross debt purchased stood at Rs 16.30 Crore, while the gross equity sold stood at Rs 1,460.40 Crore and gross debt sold stood at Rs. 0.00 Crore. Therefore, the net investment of equity and debt reported were Rs (234.80) Crore and Rs (16.30) Crore respectively.

On Friday, the Currency market was closed due to local holiday.

On BSE, total number of shares traded were 45.07 Crore and total turnover stood at Rs 4,926.47 Crore. On NSE, total number of shares traded was 102.85 Crore and total turnover was Rs 14,600.59 Crore.

Top traded volumes on NSE Nifty – Unitech with 54119836 shares, Suzlon Energy with 53582426 shares, ICICI Bank with 23525738 shares, DLF with 22217784 shares followed by SAIL with 19093647 shares.

On NSE Future and Options, total number of contracts traded in index futures was 854491 with a total turnover of Rs 13,031.51 Crore. Along with this total number of contracts traded in stock futures were 512193 with a total turnover of Rs 16,794.77 Crore. Total numbers of contracts for index options were 1551701 with a total turnover of Rs 24,745.58 Crore and total numbers of contracts for stock options were 53804 and notional turnover was Rs 1,919.65 Crore.

Today, Nifty would have a support at 3,195 and resistance at 3,289 and BSE Sensex has support at 10,280 and resistance at 10,505.