Pre Session Market Analysis for Apr 19, 2011

Pre Session Market Analysis for Apr 19, 2011
The key equity averages are likely to open negative as most of the Asian stocks are trading lower as the Standard & Poor"s Ratings Service lowered the U.S. long-term credit outlook, thus aggravating the worries that a recovery in the global economy may slow.

The MSCI Asia Pacific Index dropped 0.9% to 134.47 with about six shares declining for each that advanced. Further, Japan"s Nikkei 225 is trading lower by 1.49% to 9,413.99 as the Japanese Yen gained against the dollar and euro over European sovereign debts fuelling concerns over lower earnings for exporters.

Further, Shanghai Composite is down by 1.43% to 3,013.7 and Hang Seng Index fell 1.37% to 23,504.73. Separately, Taiwan Weighted and Seoul Composite are trading lower by 1.20% and 1.14% respectively. In the domestic arena, the markets are likely to follow the rout of global counter part and trade range-bound with downside movement. Auto, Oil&Gas and CG pivotals will be in focus today.

Previous session

On Monday, Indian benchmark indices closed the first trading day of the week on a disappointment note with intense selling pressures across the sectoral indices on concerns about inflation and high crude oil prices that appear to have prompted investors to indulge in heavy selling.

Cues from the Asian markets are also not supportive as after a firm opening, the market turned mixed. This led the investors to be bit cautious in booking fresh positions tracking lack of any favoring news from the domestic and global arena.

Moreover, with the corporate results season round the corner and concerns of possible rate hike by Reserve Bank of India in its policy review meeting, scheduled for May 3, prompted the investors to a bit calculative.

After a decent start to the session, with the benchmark indices surged to touch day"s high following strong cues from Asian bourses and firm overnight closing in the U.S bourses, the stocks failed to keep the morning mood intact and slipped below the neutral line in the late morning trade on the emergence of sudden selling pressure across Realty, IT and Teck counters.

And since then it has been struggling in the negative zone till the final closing for the day. The 30-share Sensex and S&P CNX Nifty have slipped to close at around 19,090 and 5,730 levels respectively. Both BSE Mid Cap and BSE Small cap have refrained from rendering buying support to their higher counterparts as they also are down by more than 70 points each.

The BSE SENSEX was at 19,091.17 down by 295.65 points or by 1.53 % and then NSE Nifty was at 5,729.1 down by 95.45 points or by 1.64 %. The BSE MIDCAP was at 7116.12 down by 93.05 points or by 1.29 %, while the BSE SMLCAP was at 8737.06 down by 71.1 points or by 0.81 %. The BSE Sensex touched intraday high of 19649.22 and intraday low of 19071.47.

On Monday, the U.S. markets lower with losses more than 1%. Initially sentiment was dampened by weakness among Europe's bourses, but it was then enhanced following the news that S&P decreased its outlook on U.S. debt to negative.

Market opened lower as sell-off came as a result of concerns stemming from anticipation about debt restructuring for less fiscally responsible eurozone nations like Greece, Ireland, and Portugal. These negative news completely overshadowed the latest round of earnings results that comprised of upside earnings surprises from Citigroup (C 4.42, +0.00), Halliburton (HAL 47.14, +0.32), and Eli Lilly (LLY 35.62, -0.39).

Once again strong announcements failed to translate to gains as it failed to counter broad market selling interest. However, stocks gradually managed to trim their losses after a sharp slide but none of the sector managed to muster gains, but tech stocks and consumer staples stocks did the best job of limiting losses. Each sector finished with a loss of 0.7%.

Tech's relative strength came even though only three stocks in the sector -- Akamai Tech (AKAM 39.73, +1.64), Apple (AAPL 331.85, +4.39), and Qualcomm (QCOM 53.29, +0.15) -- managed to make gains. Meanwhile, grocers propped up consumer staples stocks after Supervalu (SVU 10.67, +0.05) issued upside guidance. On the currency front, the dollar fell in the morning trade, but managed to garner gains thus the Dollar Index climbed to a 0.9% gain.

In the major indices, the Dow Jones Industrial Average (DJIA) closed with a loss of 140.24 points or 1.14% at 12,201.59 while NASDAQ index finished lower by 29.27 points or 1.06% to 2,735.38. The S&P 500 (SPX) closed down by 14.54 points or 1.1% to 1,305.14.


The FIIs on Monday stood as net buyer in equity and debt. Gross equity purchased stood at Rs. 3436.40 Crore and gross debt purchased stood at Rs. 1655.90 Crore, while the gross equity sold stood at Rs. 3252.00 Crore and gross debt sold stood at Rs. 1310.90 Crore. Therefore, the net investment of equity and debt reported were Rs. 184.40 Crore and Rs. 345.00 Crore.


Top traded Volumes on NSE Nifty - Jaiprakash Associates Ltd. 14333312, ITC Ltd. 8753906, DLF Ltd. 6769650, ICICI Bank Ltd. 5960825, Hindalco Industries Ltd. 5877222.

On BSE, total number of shares traded was 32.71 Crore and total turnover stood at Rs. 3289.32 Crore. On NSE, total number of shares traded was 63.88 Crore and total turnover stood at Rs. 13584.20 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 579129 with a total turnover of Rs. 15747.68 Crore. Along with this total number of contracts traded in stock futures were 630326 with a total turnover of Rs. 18451.38 Crore. Total numbers of contracts for index options were 2939893 with a total turnover of Rs. 86803.28 Crore. and total numbers of contracts for stock options were 198989 with a total turnover of Rs. 6606.06 Crore.

Today, Nifty would have a support at 5,643 and resistance at 5,743 and BSE Sensex has support at 18,804 and resistance at 19,138.

Read more about: bse, nse, sensex, nifty
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