Pre Session Market Analysis for Apr 15, 2011

The key equity averages are likely to open negative as Asian stocks are trading lower after China reported a higher than expected inflation growth. The MSCI Asia Pacific Index fell 0.2% to 136.24 with as many shares advancing as declined.

Japan"s Nikkei 225 Stock Average is trading lower by 0.43% to 9,612.23 as Toyota Motor Corp. declared a delay its earnings forecast due to earthquake damage and disruption of parts supplies.  

Shanghai Composite is down by 0.32% to 3,032.88 and Hang Seng Index grew 0.59% to 24,155.95. Chinese stocks plunged as rate of inflation exceeded economists expectation, thus fuelling speculation that the government will intervene to contain growth.

Separately, Seoul Composite is trading lower by 0.16%. In the domestic arena, the markets are likely to follow the rout of global counter part and trade range-bound with downside movement. HC, Auto and Metal pivotals will be in focus today.

Previous session

On Wednesday, the domestic bourses witnessed a strong bull run on heft buying pressures. The enthusiastic tone of the day has been fuelled by the slide in the crude oil prices from two and half years high and the comments from International Monetary Fund (IMF) on improved world economic outlook for April 2011.

During the morning trade, the Asian stocks traded higher and firmed up further as the day progressed, which boosted the domestic investors" sentiments. After a dismal opening session, the domestic market soon gathered momentum to recover from the negative territory and since then continued its northward journey to close near day"s high on sustained buying across the counters.

Buying was high in capital goods and auto stocks. European markets opened in the positive territory following an upbeat Asian session, but investors" trade cautiously ahead of release of U.K. unemployment data, while euro-zone industrial production data and US, retail sales and business inventories data to be released today.

Asian stocks were up despite Wall Street losses and Japan's declaration that its nuclear crisis is as severe as the 1986 Chernobyl disaster. On Wednesday, the Cabinet downgraded its assessment of Japanese economic conditions due to the quake but the markets recovered.

Back on the domestic front, according to data from the International Monetary Fund (IMF), India"s GDP grew 10.4% in 2010 and as per the projections by official agencies; India is expected to grow at a rate of 9% in the Twelfth Plan period (2011-15).

The BSE Sensex closed at 19,696.86 up by 434.32 points or by 2.25 % and then NSE Nifty was at 5,911.5 up by 125.8 points or by 2.17 %. The BSE MIDCAP was at 7,223.62 up by 100.05 points or by 1.4 %. The BSE SMLCAP was at 8,823.46 up by 113.55 points or by 1.3 %. The BSE Sensex touched intraday high of 19,737.33 and intraday low of 19,101.63.

International market on Thursday

On Thursday, the U.S. markets managed to close flat for the second straight session after overcoming selling pressure.

Initially stocks fell as sellers were instigated by renewed weakness among several major foreign equity averages and a disappointing initial jobless claims count for the week ended April 9. Initial claims registered a growth of 27,000 week-over-week to 412,000, above the expected 385,000 initial claims.

Additionally, the Producer Price Index for March grew by 0.7%, which is below the expected 1.1% growth. Further, excluding food and energy, producer prices for March surged by more than 0.3%. Initial selling pressure was mainly focused on tech stocks and financials, however buying support gradually emerged to help tech stocks trim losses, financials remained hampered by weakness among diversified bank stocks ahead of the latest report from Bank of America (BAC 13.13, -0.14).

Investment bank stocks were also weak amid news that Goldman Sachs (GS 155.79, -4.38) has been accused by a Senate subcommittee for lying in a testimony during 2010. On the other hand, strong buying interest in consumer staples stocks and energy stocks assisted the two sectors to muster a gain of 0.6%, but both the sectors failed to provide much broad market leadership.

Crude oil contracts for May closed higher by 0.9% at $108.11 per barrel, while May natural gas prices closed up by 1.4% at $4.2 per MMBtu.

In the major indices, the Dow Jones Industrial Average (DJIA) closed with a gain of 14.16 points or 0.12% at 12,285.15 while NASDAQ index finished lower by 1.3 points or 0.05% to 2,760.22. The S&P 500 (SPX) closed up by 0.11 points or 0.01% to 1,314.52.

The FIIs on Wednesday stood as net seller in equity and net buyer in debt. Gross equity purchased stood at Rs. 2021.50 Crore and gross debt purchased stood at Rs. 1872.70 Crore, while the gross equity sold stood at Rs. 2496.10 Crore and gross debt sold stood at Rs. 870.20 Crore. Therefore, the net investment of equity and debt reported were Rs. (474.60) Crore and Rs. 1002.50 Crore.

Top traded Volumes on NSE Nifty - Jaiprakash Associates Ltd. 22265007, DLF Ltd. 15125886, ITC Ltd. 10478570, Bharti Airtel Ltd. 7893738, Hindalco Industries Ltd. 7534852. On BSE, total number of shares traded was 38.15 Crore and total turnover stood at Rs. 3320.21 Crore. On NSE, total number of shares traded was 71.33 Crore and total turnover stood at Rs. 13024.00 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 656404 with a total turnover of Rs. 18016.04 Crore. Along with this total number of contracts traded in stock futures were 589022 with a total turnover of Rs. 16533.80 Crore. Total numbers of contracts for index options were 3186069 with a total turnover of Rs. 93907.31 Crore. and total numbers of contracts for stock options were 135754 with a total turnover of Rs. 4095.28 Crore.

Today, Nifty would have a support at 5,881 and resistance at 5,940 and BSE Sensex has support at 19,597 and resistance at 19,794.

Read more about: bse, nse, sensex, nifty
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