Pre Session Commentary - May 26 2009

Today domestic markets are likely to open negative due to mixed cues from the other Asian markets. Yesterday’s subdued trading exudes lack of any specific news that would drive the markets. On corporate news, Bharti Airtel is paving its way to merge with the MTN to form one amongst the top five largest telecom companies in the world. On a whole the markets would trade volatile due to lack of any supportive news.

On Monday, the domestic markets closed flat after a volatile trading session. After the subdued opening the markets turned volatile within a short period due to lack of cues from other markets across the world. CD, Realty, HC and FMCG managed to record respective gains of 4.79%, 4.25%, 2.83% and 2.73%. On the other hand sectors like Tech and IT closed with marginal losses of 0.89% and 0.33% respectively. Mid cap and Small cap stocks were under the limelight as they recorded phenomenal gains of 2.83% and 5.01% respectively. We expect the markets to be trading volatile.

The BSE Sensex closed high by 26.07 points at 13,913.22 and NSE Nifty ended flat at 4,237.55. BSE Mid Caps and Small Caps closed with phenomenal gains of 134.47 points and 276.27 points at 4,890.15 and 5,789.43 respectively. The BSE Sensex touched intraday high of 14,028.06 and intraday low of 13,819.25.

On Monday, the US stock markets were closed due to Memorial Day.

Today major stock markets in Asia are trading mixed. Hang Seng is trading low by 34.15 points at 17,087.67 followed by Shanghai Composite which is low by flat at 2,606.91. Japan''s Nikkei is low by 63.08 points at 9,283.92, Strait Times is low by 6.40 points at 2,261.06. Seoul Composite is low by 11.91 points at 1,388.99 respectively.

The FIIs on Monday stood as net sellers in equity and debt. Gross equity purchased stood at Rs 2,412.00 Crore and gross debt purchased stood at Rs 21.20 Crore, while the gross equity sold stood at Rs 3,106.70 Crore and gross debt sold stood at Rs. 69.90 Crore. Therefore, the net investment of equity and debt reported were Rs (694.71) Crore and Rs (48.60) Crore respectively.

On BSE, total number of shares traded were 87.86 Crore and total turnover stood at Rs 7,327.05 Crore. On NSE, total number of shares traded was 130.83 Crore and total turnover was Rs 18,831.9 Crore.

Top traded volumes on NSE Nifty – Unitech with 77099481 shares, Suzlon Energy with 52572126 shares, DLF with 16888138, Ranbaxy 16093586 shares followed by Bharti Airtel with 11857653 shares.

On NSE Future and Options, total number of contracts traded in index futures was 753744 with a total turnover of Rs 15,939.06 Crore. Along with this total number of contracts traded in stock futures were 523384 with a total turnover of Rs 26,927.70 Crore. Total numbers of contracts for index options were 964304 with a total turnover of Rs 20,598.33 Crore and total numbers of contracts for stock options were 30720 and notional turnover was Rs 1,675.94 Crore.

Today, Nifty would have a support at 4,165 and resistance at 4,280 and BSE Sensex has support at 13,810 and resistance at 13,998.