Pre Session Commentary - Sep 11 2009

Today domestic markets are likely to open negative as there are mixed cues from majority of Asian markets. The overnight surge in US markets on the back of better jobless claims data has given some confidence to other markets. However as the domestic markets are already at its 2009 peak levels, any upward movement from here is apprehensive. During the day trading is likely to be range bound.

On Thursday, markets closed on flat note after showing a strong rally at the initial stage, on the back of far end profit booking across the selective indices. Instability was led by bouts buying and selling that was witnessed in key stocks. Market pared most of its gains during last hours and stocks touched the red zone during final trading on some profit booking led by recent rally in stocks. However, stocks were trading with good gain till before afternoon trade tracking upbeat sentiment from global markets. Meanwhile, inflation for the week ended 29th Aug 2009, came in at -0.12% as compared to -0.21% in the previous week. The BSE Sensex ended above 16,150 level and NSE Nifty closed above 4,800 mark.

The BSE Sensex closed marginally higher by 133.31 points at 16,216.86 and NSE Nifty ended slightly up by 5.15 points at 4,819.40. BSE Mid Caps and Small Caps closed with losses of 10.31 and 55.19 points at 5,929.50 and 7,128.19 respectively. The BSE Sensex touched intraday high of 16,434.77 and intraday low of 16,166.42.
On Thursday, US markets closed positive. The buying momentum helped stocks close higher again. There was latest Treasury auction and comments from Treasury Secretary Geithner to lift stocks to fresh highs for 2009. News that the latest batch of initial jobless claims and continuing claims fell more than expected to 550,000 and 6.09 million, respectively, and that the trade deficit deepened more than expected to $32.0 billion in July was helped improvement in the sentiments of market participants. President Obama has said that the health care reform shall be backed by health insurance plan of $900 billion over 10 years, which will be funded with spending cuts and tax increases. Crude oil futures for the month of October delivery gained by 0.8% at $71.91 a barrel on New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed higher by 80.26 points at 9,627.48. NASDAQ index gained 23.63 points at 2,084.02 and the S&P 500 (SPX) also inclined by 10.77 points to close at 1,044.14 points.
Today the major stock markets in Asia opened positive. Hang Seng is high by 140.99 points at 21,122.31. Further Japan''s Nikkei is low by 34.99 points at 10,478.68. Jakarta Composite is trading high by 9.96 points at 2,412.18.

Indian ADRs ended mixed on Thursday. In the banking space, ICICI Bank was up 1.06% and HDFC Bank was up 0.07%. In the IT space, Infosys was up 0.77% while Wipro was down 0.3%, Satyam Computers was down 2.22% and Patni Computers was down 3.59%. In the telecom space, Tata Communication was down 1.18% and MTNL was down 2.09%. In other sectors, Dr Reddy''s Labs was up 2.15%, Sterlite Industries was up 1.88% and Tata Motors was up 0.62%

The FIIs on Thursday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 3,101.40 Crore and gross debt purchased stood at Rs 375.00 Crore, while the gross equity sold stood at Rs 2,854.00 Crore and gross debt sold stood at Rs 1,135.20 Crore. Therefore, the net investment of equity and debt reported were Rs 247.40 Crore and Rs (760.10) Crore respectively.

On Thursday, Indian Rupee closed at 48.50/51 per dollar, 0.2% weaker than its previous close at 48.51/52. The local currency ended low due to demand for green back as gold importers are importing gold ahead of festive season.

On BSE, total number of shares traded were 51.75 Crore and total turnover stood at Rs 6,720.80 Crore. On NSE, total number of shares traded were 100.47 Crore and total turnover was Rs 19,599.45 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 49644870 shares, followed by Suzlon Energy with 35072131, Hindalco with 22259415 shares, DLF with 17374570 shares and Tata Steel with 11365036 shares.

On NSE Future and Options, total number of contracts traded in index futures was 739559 with a total turnover of Rs 16,992.46 Crore. Along with this total number of contracts traded in stock futures were 660527 with a total turnover of Rs 22,022.06 crore. Total numbers of contracts for index options were 1411201 with a total turnover of Rs 34,074.52 Crore and total numbers of contracts for stock options were 71907 and notional turnover was Rs 2,494.34 Crore.

Today, Nifty would have a support at 4,764 and resistance at 4,866 and BSE Sensex has support at 16,012 and resistance at 16,365