Pre Market - Nov 6 2009

Headlines for the day

Trai mulls fixing SMS termination charges - Business Standard

M&M to launch motorcycle next year - Business Standard

NTPC plans 100 Mega watts solar projects in Gujarat - Business Standard

Tea output, exports fall in September - Business Line

NALCO raises product price - Business Line

Reliance Comunications eyes Rs600 crore handset sales in FY10 - DNA Money

Events for the day

Major corporate action:

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Ex-date for interim dividend of Deccan Chronicle, Dolphin Offshore, Hindustan Unilever, Gabriel

Pre-market Commentary

Global signals

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The stocks in the European indices that started the day on a weak note following the weak Asian cues. However it recovered all losses and closed in green with marginal gains on the back of positive data of the US jobless claims.

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The Dow reclaimed 10000 on Thursday and the stocks in the US rose sharply owing to the bigger-than-expected drop in the jobless claims reported by the government, while the improved productivity reported by the retialers. The Dow surged with gains of over 200 points or 2% and closed at 10006. While S&P 500 and Nasdaq ended higher with gains of 1.92% and 2.42%.

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On the back of strong closing by the US and European market, all the major Asian markets were trading in the positive zone with gains in the range of 0.45%-1.95% each, wherein Hang Seng rose the most. Even SGX Nifty opened strong, while at the time of writing this report it was trading 48 points higher to its previous close.

Indian markets

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Looking at such strong and positive cues from the global indices, Sensex may continue its gaining streak for the third consecutive day and open gap-up with strong gains.

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Among the local indices, the Nifty could test the 4800- 4850 range on the up side, while on the down side it could find support at 4725 and 4700. While the Sensex is likely to get support at 15600 and may face resistance at 16400.

Indian ADR's

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Among the Indian ADRs trading on the US bourses, all ADR's closed in green for the second consecutive day with gains in the range of 1.01%- 6.33%, with MTNL gaining the most.

Commodity cues

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In the commodity space, Crude oil prices fell marginally after thre consecutive days of rise, with the Nymex light crude oil for December series declining by $0.78 to close at $79.62 a barrel.

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In the metals space, the Comex Gold for December series continued to surge and rose by $2.20 to settle at $1089.50 a troy ounce, while Comex Silver for December series fell by $0.01 to settle at $17.40 a troy ounce.

Daily trend of FII/MF investment in equities

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On November 04, 2009, FIIs were the net buyers of the Indian Stocks in the tune of Rs13.70 crore (with the gross purchase of Rs3395.20 crore and gross sales of Rs3381.40 crore).

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While the Domestic mutual funds mutual funds, on November 04, 2009, were also net buyer of the stocks in the tune of Rs386.30 crore (with gross purchase of Rs958.00 crore and gross sales of Rs571.70 crore).