Pre Session Commentary - Nov 3 2009

Today domestic markets are likely to open flat to positive amid bounce back in US Market overnight. However, the bourses might saw their gains reverse as weakness among Asian stocks and fragile trade in SGX Nifty. One could expect buyers stepping in for Banking and Metal stocks along the curve. The trade would be choppy with negative bias. Today domestic market is likely to trade range bound with negative bias.

On Friday, Indian market closed negative for the fifth consecutive session amid active participation of sellers and weak global market. The barometer index BSE Sensex closed below the psychological 16,000 mark. The weak listing of Indiabulls Power on the bourses spoiled the investors’ sentiments. The stock closed at Rs. 39.25 lower by 12.77% over the initial public offer price of Rs. 45 a share. From the sectoral front, Oil and Gas index is worst hit due the earnings of some of the major players like ONGC and Reliance industries reported below than expected September quarterly earnings. Telecom stocks were hammered on continued worries about price war in the sector. Auto stocks climbed on expectations of strong sales in Oct’09. Metal shares advanced on firm metal prices on the London Metal Exchange. The bourses were dragged by huge sell off in Oil&Gas, Tech and Power stocks with respective slide 2.79%, 1.93%, 1.49% and 0.89% respectively. The Market breadth, indicating the overall strength of the market, was weak.

The BSE Sensex closed lower by 156.44 points or 0.97% at 15,896.28 and NSE Nifty closed down by 38.85 points or 0.82% at 4,711.70. The BSE Mid Caps closed lower by 32.49 points at 6,014.30 and the BSE Small Caps closed with losses of 55.12 points at 7,058.72. The BSE Sensex touched intraday high of 16,360.88 and intraday low of 15,805.20.

The US markets closed positive on Monday amid better than expected economic data. The ISM Manufacturing Index for October witnessed at 55.7, construction spending in September gusted 0.8%, and pending home sales for September made a 6.1% monthly rise helped broad-based buying. Financials were outperformer as the sector gained 2.5%.However, financial sector saw their gains reverse as weakness among insurers spread to the rest of the sector. Materials stocks finished the session with some of the strongest gains on weakening dollar. Rally was also seen in consumer staples stocks (+1.0%) and consumer discretionary stocks (+0.9%), which were helped by strength in shares of Ford. US light crude oil futures for December delivery closed up by 1.4% at $78.09 per barrel, on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) ended with gain of 76.71 points at 9,789.44. NASDAQ index climbed 4.09 points to 2,049.20 and the S&P 500 (SPX) closed higher by 6.69 points at 1,042.88.

Indian ADr''s ended strong on Monday. In the IT space Infosys was up 0.83%, Wipro was up 2.04% while Satyam was down 2.84% and Patni was up 0.52%. In the telecom space Tata Comm was up 6.57% while MTNL slipped 1.72%. In the banking space, ICICI Bank was up 4.29% while HDFC Bank was up 1.37%. In the other sectors, Sterlite was up 2.09%, Dr Reddys was up 5.52% and Tata Motors was up 2.99%.



The FIIs on Friday stood as net seller in equity and debt as well. Gross equity purchased stood at Rs. 3,418.90 crore and gross debt purchased stood at Rs. 247.10 crore, while the gross equity sold stood at Rs. 5,013.50 crore and gross debt sold stood at Rs. 307.20 crore. Therefore, the net investment of equity and debt reported were (Rs. 1,594.60) crore and (Rs. 60.10) crore respectively.

On Friday, the partially convertible rupee ended at 47.21/22 per dollar, 0.3% stronger than previous closing at 47.20/21 per dollar helped by dollar sales by exporters taking profits.

On BSE, total number of shares traded were 49.54 crore and total turnover stood at Rs. 6,207.52 crore. On NSE, total number of shares traded were 105.88 crore and total turnover was Rs. 20,196.37 crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 62950482 shares, followed by Suzlon Energy with 37683708, Bharti Airtel with 33104590, Reliance Communication with 19416431 and Jaiprakash Associates with 16014670 shares.

On NSE Future and Options, total number of contracts traded in index futures was 837152 with a total turnover of Rs. 19,335.20 crore. Along with this total number of contracts traded in stock futures were 663781 with a total turnover of Rs. 20,280.28 crore. Total numbers of contracts for index options were 1514941 with a total turnover of Rs. 36,956.57 crore and total numbers of contracts for stock options were 58873 and notional turnover was Rs. 1,765.43 crore.

Today, Nifty would have a support at 4,686 and resistance at 4,745 and BSE Sensex has support at 15,723 and resistance at 15,972.