Pre Session Commentary - July 21 2009

Today domestic markets are likely to open positive. The US markets have gained remarkably overnight on the back of better corporate earnings and firm buying sentiments. However in the Asian space majority of markets are trading subdued as they have gained enough during the last couple of days. At this peak level one could witness a subdued trading in the domestic markets as well. There could be some profit booking pressures at higher level.

On Monday, domestic markets closed with phenomenal gains. Exemplary first quarter results from TCS coupled with strong bullish sentiments from Asian markets propelled domestic Sensex to breach the 15k mark. There was some short covering happening across broader level as traders were expecting markets to fall, however as the markets picked up traders squared off positions to minimize losses. TCS posted better-than-expected 22 per cent growth in net profit to 15.20 billion rupees. Revenue rose 12 per cent to 72.07 billion rupees. European markets gave a lot of support to the early surge in domestic arena. Amongst sectors IT, Realty, Teck and Bankex were the leaders with gains of 7.26%, 4.91%, 4.78% and 4.37% respectively. BSE Mid Caps and Small Caps also gained by 2.54% and 2.52% respectively. Today markets are likely to trade positive with an essence of volatility.

The BSE Sensex closed with phenomenal gain of 446.09 points at 15,191.01 and NSE Nifty ended higher by 127.30 points at 4,502.25. BSE Mid Caps and Small Caps closed with gains of 129.50 and 142.97 points at 5,235.09 and 5,823.87 respectively. The BSE Sensex touched intraday high of 15,209.36 and intraday low of 14,854.17.

On Monday, the US stocks markets closed higher on the back of better than expected corporate earnings and also CIT group coming up with news to secure $3 billion rescue financing. On a corporate earnings aspect companies like Halliburton (HAL 22.33 +0.95) Hasbro (HAS 26.45 +1.07), Johnson Controls (JCI 23.08 +1.56), and Eaton (ETN 48.94 +3.99) all reported better-than-expected second quarter results before the opening bell. Traders were also inspired by news that Goldman Sachs has raised their 2009 target for the S&P 500 to 1060. On the macro economic aspect, June leading indicator data was better than expected at +0.7% as against the consensus +0.5%. Tomorrow will be a crucial day in the corporate earnings space as companies like Caterpillar (CAT 36.65 +2.66), Coca-Cola (KO 51.03 +0.71), Apple (AAPL 152.91 +1.16), Yahoo (YHOO 17.01 +1.01), and UnitedHealth (UNH 24.84 -0.25) will declare their results. US light crude oil futures for August delivery closed at $64.12 per barrel up by 0.8% on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed higher by 104.21 points at 8,848.15, NASDAQ index gained 22.7 points to 1,909.29 and the S&P 500 (SPX) closed up by 10.8 points at 951.13.


Indian ADRs surged on Monday with IT and Banking space gaining the most. In the banking space, ICICI Bank was up 9.19% and HDFC Bank was up 6.61%. In the IT space, Infosys was up 5.01%, Satyam Computers was up 5.69%, Wipro was up 4.44% and Patni Computers was up 4.26%. In the telecom space, Tata Communication was up 1.88% while MTNL was down 1.03%. In other sectors, Tata Motors was up 3.41%, Dr Reddy''s Labs was up 2.39% and Sterlite Industries was up 2.48%.

The FIIs on Monday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 2,846.60 Crore and gross debt purchased stood at Rs 859.70 Crore while the gross equity sold stood at Rs 2,586.60 Crore and gross debt sold stood at Rs 525.70 Crore. Therefore, the net investment of equity reported was Rs 260.00 Crore and net debt was Rs 334.00 Crore.

On Monday, the partially convertible rupee ended at Rs 48.20/21, 1.08% stronger than its previous close at 48.73/74. The rupee gained strength on the back of phenomenal rally in domestic stock markets.

On BSE, total number of shares traded were 44.63 Crore and total turnover stood at Rs 6,193.18 Crore. On NSE, total number of shares traded were 99.73 Crore and total turnover was Rs 19,072.38 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 59801090 shares, followed by Suzlon Energy with 54156485, TCS with 17260270, DLF with 13305997 and Hindalco with 11455750 shares.

On NSE Future and Options, total number of contracts traded in index futures was 698026 with a total turnover of Rs 15,059.83 Crore. Along with this total number of contracts traded in stock futures were 655143 with a total turnover of Rs 19,731.47 crore. Total numbers of contracts for index options were 1488378 with a total turnover of Rs 33,099.06 Crore and total numbers of contracts for stock options were 67992 and notional turnover was Rs 2,117.71 Crore.

Today, Nifty would have a support at 4,476 and resistance at 4,586 and BSE Sensex has support at 15,080 and resistance at 15,392.