Markets to open weak, remain choppy

Headlines for the day

Wipro, Infosys line up BPO buys- DNA Money

Dabur eyes $500m Buyout - DNA Money

REC gets Power Ministry nod for Follow-on offer - Business

Government to tighten rules for FDI approvals - Business Standard

Renault-Nissan finally signs ultra-low-cost deal with Bajaj - Business Standard

Events for the day

Major corporate action:

Ex-date for interim dividend of DCM Shriram Industries, Financial Technologies India, J K Cement, Jagaran Prakashan

Ex-date for stock split of Allied Digital Services from Rs10 per share to Rs5

Pre-market Commentary

Global signals

On Tuesday, the major European indices lost stem, sheding morning gains and ended in the red after four days of gains. The European shares remanined highly volatile and closed marginally lower by around 0.1% each owing to the disappointing results by telecom major Vodafone and weaker metal prices acting drag on mining stocks.

With no major trigger in the hindsight for the US markets, indices ended mixed, expected to continue to move sideways. The investors turned cautious after the indices touching its 13-month high on Monday. Dow closed at 10247 and in the green with marginal gains of 0.20%, while Nasdaq and S&P 500 ended the day in the negative zone with marginal losses of 0.14% and 0.01% respectively.

Even all the major Asian indices that opened positive with marginal gains, were currently giving mixed performance and few sliding in the red. While the SGX Nifty that opened with decent gains, at the time of writing this report managed to sustain gains and was trading 23 points higher.

Indian markets

With mixed signal coming from the global front and no major domestic triggers for the market, Sensex is expected to open marginally higher, however it is expected to remain range-bound and choppy.

Among the local indices, the Nifty could test the 4950-5000 range on the up side, while on the down side it could find support at 4830 and 4800. While the Sensex is likely to get support at 16000 and may face resistance at 16750.
Indian ADR's

Among the Indian ADRs trading on the US bourses - Wipro, Dr Reddy, Tata Motors, MTNL and VSNL closed in green, with marginal gains of 0.06%-1.57% each. While remaining ADR’s closed marginally lower with losses in the range of 0.50%-2.14% each. Among all ADRs, MTNL surged the most, while Satyam declined the most.

Commodity cues

In the commodity space, Crude oil prices again fell marginally, with the Nymex light crude oil for December series sliding by $1.13 to close at $78.30 a barrel after making an intra-day high of $80.45.

In the metals space, the Comex Gold for December series managed to sustain $1100 level. It continued to surge and rose marginally to settle at $1102.50 a troy ounce, while Comex Silver for December series fell marginally by $0.26 to settle at $17.23 a troy ounce.

Daily trend of FII/MF investment in equities

On November 06, 2009, FIIs were the net buyers of the Indian Stocks in the tune of 649.20 crore (with the gross purchase of Rs2280.20 crore and gross sales of Rs1631.00 crore).

While the Domestic mutual funds mutual funds, on November 06, 2009, were net buyer of the stocks in the tune of Rs182.10 crore (with gross purchase of Rs853.40 crore and gross sales of Rs671.30 crore).