Pre Session Commentary - June 10 2009

Today domestic markets are likely to open positive as the Asian markets have opened with phenomenal gains after a lackluster trading yesterday. The domestic sentiments are showing signs of firmness and the surge in frontline stocks are likely to occur today. Stock specific movements would thrive during the day and stocks like Satyam is most likely to trade upper circuit again after surprising third quarter results.

On Tuesday, the domestic markets closed with huge gains as the frontline stocks bounced back with intense buying. The domestic traders were optimistic about the resurgence of markets at broader level and therefore sectors like Realty, IT and Metal rebound by 6.25%, 4.79% and 4.28% respectively. In BSE Sensex cap DLF, JP Associates and Reliance Com were the fore runners with phenomenal gains of 10.07%, 8.18% and 7.37% respectively. Broad based buying helped Mid cap and Small cap index to record respectable gains of 3.15% and 1.67% respectively. We expect the markets to be trading positive.

The BSE Sensex closed with gain of 461.08 points at 15,127.00 and NSE Nifty ended high by 121.05 points at 4,550.95. BSE Mid Caps and Small Caps closed with gains of 160.87 points and 101.73 points at 5,275.72 and 6,185.61 respectively. The BSE Sensex touched intraday high of 15,161.22 and intraday low of 14,526.69.

On Tuesday, the US Markets closed flat for the second consecutive day. The trading day once again started lackluster amid lack of any specific news. However the semiconductor stocks were in the limelight with a phenomenal gain of 4.5%. The surge came after the Texas instruments increased its second quarter forecast. This announcement surprised investors just after a week when the chief executive from Applied Materials (11.03, +0.17) made pessimistic comments about the semiconductor industry. The materials sector on the other hand inclined by 2.3% as the commodity prices inclined due to 1.4% fall in U.S. dollar. The US light crude oil for July delivery closed high by 2.7% at $69.92 per barrel marking a new 2009 high on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed flat at 8,763.06 the NASDAQ Composite (RIXF) index inclined by 17.73 points to close at 1,860.13 and the S&P 500 (SPX) closed flat at 942.43.

Indian ADRs rallied on Tuesday. In IT space, Satyam Computers rose 33.82% and ended at, following better than expected results. Patni Computers was up 10.09%, Infosys was up 3.62% and Wipro was up 4.66%. In Banking space, HDFC Bank was up 3.11% and ICICI Bank was up 1.47%. In Telecom space, Tata Communication was up 2.33% and MTNL was up 0.43%. In other sectors, Dr Reddy''s Labs was up 4%, Sterlite Industries was up 0.29% while Tata Motors ended down 0.48%.

Today major stock markets in Asia are trading positive. Hang Seng is up by 344.77 points at 18,403.26. Shanghai Composite is up by 12.49 points at 2,800.379. Japan''s Nikkei is trading up by 140.36 points at 9,927.18. Strait Times is also up by 22.08 points at 2,371.95. KLSE Composite is flat at 1,071.79.

On Tuesday, the partially convertible rupee closed at 47.48/49 per dollar, 0.2% stronger than it previous close at 47.55/56. The rupee gained due to huge bounce back in local stock markets.

On BSE, total number of shares traded were 60.13 Crore and total turnover stood at Rs 8,002.02 Crore. On NSE, total number of shares traded was 136.01 Crore and total turnover was Rs 23,309.78 Crore.

Top traded volumes on NSE Nifty – Unitech with 126880698 shares, Suzlon Energy with 79853861 shares, DLF with 23444038 shares, Reliance Comm with 13048795 shares, followed by Tata Steel with 12564263 shares.

On NSE Future and Options, total number of contracts traded in index futures was 718613 with a total turnover of Rs 15,513.9 Crore. Along with this total number of contracts traded in stock futures were 444679 with a total turnover of Rs 26,407.15 Crore. Total numbers of contracts for index options were 1098618 with a total turnover of Rs 25,087.68 Crore and total numbers of contracts for stock options were 37457 and notional turnover was Rs 2,265.12 Crore.

Today, Nifty would have a support at 4,596 and resistance at 4,674 and BSE Sensex has support at 14,210 and resistance at 15,452.