Pre Session Market Analysis for May 10, 2011

Pre Session Market Analysis for May 10, 2011
The key equity averages are likely to open positive as most of the Asian stocks are trading positive tracking a positive finish in the Wall Street and optimism over Japanese corporate earnings. The MSCI Asia Pacific Index gained 0.2 per cent at 137.9 with about three stocks losing for every two that gained.

Japan"s Nikkei 225 is trading lower by 0.24% at 9,771.11 as Greece"s credit rating was cut two levels by Standard & Poor"s, thus strengthening the yen and rising concerns about the strength of the recovery in the global economy.

However, the Shanghai Composite is up by 0.31% to 2,881.42 and Hang Seng Index advanced 0.76% to 23,336.0. Separately, Straits Times and Jakarta Composite are trading higher by 0.25% and 0.27%, respectively. In the domestic arena, the markets are likely to follow the rout of global counterpart and trade range-bound with upside movement. Realty, Oil&Gas and Metal pivotals will be in focus today.

Previous Session

On Monday, The domestic bourses closed the first trading day of the week on a flat note after facing huge volatility throughout the trading session. Asian stock markets were broadly positive after the release of much stronger-than-expected jobs data from the US on Friday, but shares in Tokyo were down on concerns about potential power shortages.

European markets were trading negative amidst renewed worries about sovereign debt, with Greece considering abandoning euro. Despite subsequent denials by Greek and euro-zone officials, traders say a press report Friday saying that Greece has raised the possibility of exiting the euro zone.

On the sectoral front, the interest rate sensitive auto stocks tumbled on concerns higher interest rates could crimp sales of automobiles and also due to disappointing car sales data released in the afternoon. After opening the session on a positive note, the domestic market soon tumbled below the baseline on hefty selling pressures across the sectoral indices tracking the initial weakness in the Asian markets, which has led the market to touch fresh intraday lows in the morning trade.

Some buying at lower levels due to some recovery in the Asia markets led the domestic market to bounce back from the negative territory. However it again slipped into the negative territory but soon recovered to touch fresh intraday high.

Markets pared gains towards the final hours and close on a flat note. On the domestic front, According to figures released by the Society of Indian Automobile Manufacturers (SIAM) today, car sales in India posted the slowest growth rate in 22 months in April this year at 13.18% amidst rising interest rates and declining consumer confidence impacted automobile sales across the country.

BSE SENSEX closed at 18528.96, up by 10.15 points or by 0.05 % and then NSE Nifty closed at 5,551.1 down by -0.35 points or by -0.01 %. The BSE MIDCAP closed at 6,871.68 up by 7.9 points or by 0.12 % while the BSE SMLCAP closed at 8,342.8 up by 0.22 points or by 0%. The BSE Sensex touched intraday high of 18,643.58 and intraday low of 18,367.21 The NSE Nifty touched intraday high of 5,586.05 and intraday low of 5,502.4.

On Monday, the U.S. markets closed higher as natural resources stocks provided support after commodities climbed up. An initial positive tone was overshadowed by the losses in the Europe's major bourses amid concerns that Greece may need more bailout funding.

However, market was flat for the first couple of hours, but as buyers come back into commodities helped the trade to move northwards. Further, oil's rebound stimulated interest in the energy sector, which gradually outperformed for virtually the entire session as the sector gained around 1.6%. Besides, an appetite for natural resource assisted basic materials stocks win favor and gain around 1.5%.

The broader market moved higher as the dollar turned downward to trade with a loss. The dollar was up with a solid gain initially as participants pressured the euro in response to the Greece headlines, but the greenback gradually pared its gain.

Despite this, broad market strength failed to pull back the financials from negative terrain and the sector closed lower by 0.2%, the only sector to close in red. The session did not have any announcements for the day.

In the major indices, the Dow Jones Industrial Average (DJIA) closed with a gain of 45.94 or 0.36% at 12,684.68 while NASDAQ index finished higher by 15.69 points or 0.55% to 2,843.25. The S&P 500 (SPX) closed up by 6.09 points or 0.45% to 1,346.29.

The FIIs on Monday stood as net seller in equity and net buyer in debt. Gross equity purchased stood at Rs. 2613.60 Crore and gross debt purchased stood at Rs. 423.10 Crore, while the gross equity sold stood at Rs. 2964.90 Crore and gross debt sold stood at Rs. 377.90 Crore. Therefore, the net investment of equity and debt reported were Rs. (351.30) Crore and Rs. 45.20 Crore.

Top traded Volumes on NSE Nifty - Jaiprakash Associates Ltd. 6720029, ITC Ltd. 5601444, Hindustan Unilever Ltd. 4797471, Hindalco Industries Ltd. 4478705, Bharti Airtel Ltd. 4118641.

On BSE, total number of shares traded was 23.65 Crore and total turnover stood at Rs. 2268.07 Crore. On NSE, total number of shares traded was 46.28 Crore and total turnover stood at Rs. 8512.22 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 622319 with a total turnover of Rs. 15994.84 Crore. Along with this total number of contracts traded in stock futures were 526932 with a total turnover of Rs. 13501.17 Crore. Total numbers of contracts for index options were 2956292 with a total turnover of Rs. 82903.18 Crore. and total numbers of contracts for stock options were 97582 with a total turnover of Rs. 2619.47 Crore.

Today, Nifty would have a support at 5,534 and resistance at 5,578 and BSE Sensex has support at 18,472 and resistance at 18,620.

Read more about: bse, nse, sensex, nifty
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