Pre Session Commentary - Sep 10 2009

Today domestic markets are likely to open positive as majority of Asian markets have opened in green. Yesterday’s positive movement in US markets has exuded strength and firmness across broader level. The concurrent positive movement in Asian markets will definitely inspire the domestic sentiments as well. However as the markets are already at peak level a narrow-range trading in indispensable. During the day trading is likely to be range bound.

On Wednesday, domestic markets managed to conclude today’s session on a positive terrain after remaining range bound for most of the session. The market staged a smart pull back from the day’s low in the final hours lead by decent gains from the oil and gas stocks. However, cues from the Asian markets not in favor as major Asian exchanges closed in red. After a dismal opening, the market recovered from the fall on selective buying across the indices due to the revival in monsoon and a recent survey showed an improvement in business confidence of India Inc. The BSE Sensex ended above 16,150 level and NSE Nifty closed above 4,810 mark.

The BSE Sensex closed higher by 59.88 points (0.37%) at 16,183.55 and NSE Nifty ended up by 9 points or (0.19%) at 4,814.25. BSE Mid Caps and Small Caps closed flat at 5,939.81 and 7,183.38 respectively. The BSE Sensex touched intraday high of 16,215.74 and intraday low of 16,044.77.

On Wednesday, US markets closed positive. The major indices started the session with modest losses, but that was met by buyers looking to extend the stock market''s recent gains. Stocks did hand back a chunk of their gains following a disappointing Fed Beige Book, but participants shrugged off the commentary and pushed stocks broadly higher into the close. Thanks to a late rebound by the broader market, energy and materials stocks were able to close with strength. They had faltered after energy prices and precious metals prices finished in weak fashion. The only positive news from the Beige Book came from the manufacturing sector, which has seen an increase in orders. Crude oil futures for the month of October delivery gained by 0.5% at $71.49 a barrel on New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed higher by 48.88 points at 9,547.22. NASDAQ index gained 22.62 points at 2,060.39 and the S&P 500 (SPX) also inclined by 7.98 points to close at 1,033.37 points.

Indian ADRs ended in green on Wednesday. In the IT space, Satyam Computers was up 4.15%, Infosys was up 1.78%, Wipro was up 1.79% while Patni Computers was down 0.45%. In the banking space, ICICI Bank was up 3.57% and HDFC Bank was up 1.37%. In the telecom space, Tata Communication was up 1.19% and MTNL was up 0.26%. In other sectors, Sterlite Industries was up 1.05%, Tata Motors was up 0.08% while Dr Reddy''s Labs was flat.

The FIIs on Wednesday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 3,929.30 Crore and gross debt purchased stood at Rs 457.30 Crore, while the gross equity sold stood at Rs 2,754.80 Crore and gross debt sold stood at Rs 347.10 Crore. Therefore, the net investment of equity and debt reported were Rs 1,174.60 Crore and Rs 110.20 Crore respectively.

On Wednesday, Indian Rupee closed at 48.50/51 per dollar, 0.06% weaker than its previous close at 48.47/48. The local currency ended low due to firmness in domestic stock markets.

On BSE, total number of shares traded were 49.91 Crore and total turnover stood at Rs 6,249.54 Crore. On NSE, total number of shares traded were 96.73 Crore and total turnover was Rs 18,384.25 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 50868494 shares, followed by Suzlon Energy with 31369379, Hindalco with 25895323 shares, DLF with 15790910 shares and ITC with 14989461 shares.

On NSE Future and Options, total number of contracts traded in index futures was 491252 with a total turnover of Rs 11,234.67 Crore. Along with this total number of contracts traded in stock futures were 562563 with a total turnover of Rs 18,593.34 crore. Total numbers of contracts for index options were 902313 with a total turnover of Rs 21,729.35 Crore and total numbers of contracts for stock options were 67771 and notional turnover was Rs 2,377.83 Crore.

Today, Nifty would have a support at 4,774 and resistance at 4,856 and BSE Sensex has support at 16,012 and resistance at 16,256