June 7, 2011: Indices to likely open weak today

Indices to likely open weak today
The key domestic indices are likely to open on a negative note, as most of the Asian indices were trading lower following the overnight decline in the US market. Further, the weakness came in amidst the plunge in crude oil prices on concerns over the slowdown in the global economic recovery.

The MSCI Asia Pacific Index slipped 0.1% to 133.44, with around three stocks falling for every two that rose. The Japanese market remained marginally on the higher side, despite of the strength in yen dampening the earnings outlook for the country"s exports. The Nikkei225 increased by 0.03% at 9,383.32, whereas the Shanghai Composite and Hang Seng declined by 0.01% at 2,727.67 and 0.66% at 22,799.69, respectively.

Further, the Straits Times and Seoul Composite declined by 0.37% and 0.91%, respectively. In the domestic arena, the markets are likely to follow the route of global counterpart and trade on a downbeat note. The IT, Metal, Auto and Banking space will be in focus during today"s trade.

Today, Nifty will face a resistance near 5,630 level and will have a support near the 5,480 mark.

Previous Session

On Monday, the domestic bourses ended on a cheerful note, after struggling in the negative terrain for the major part of the session. During the morning trade, all the Asian indices were seen trading lower as the disappointing jobs growth data in US fueled concerns that the recovery in the world"s largest economy is slowing down.

After witnessing a subdued start, the benchmark indices were seen trading rangebound on the lower side with the Metal, Auto and Oil&Gas space taking the major hammering. The market plunged further, before the benchmark Nifty took support near the 5,480 mark.

A rangebound movement was witnessed till the mid-session, post which a smart pull back was observed. During the final hour of trade, the benchmark indices were seen surging in the positive terrain, with the major support coming in from the IT and Capital Goods space. Despite of the smart recovery towards the end, the market breadth remained weak.

The BSE Sensex closed at 18,420.11 up by 43.63 points or by 0.24% and the NSE Nifty closed at 5,532.05, higher by 15.30 points or by 0.28%. The BSE Midcap was at 6,878.90, lower by 17.24 points or 0.25%, whereas the BSE SmallCap closed at 8,252.80, increasing by 14.11 points or by 0.17%. The BSE Sensex touched intraday high of 18,458.63 and intraday low of 18,258.42.

On Monday, the U.S. markets closed on a bearish note, marking its fourth straight session of losing streak. The market dragged amidst strength in the greenback after a late hour sell off pushed the euro down. The financial and energy space were the major contributors to the market weakness, as each of them plunged by 2%. The energy space was hammered as the crude oil prices showed signs of weakness and slipped below USD 100 per barrel. The S&P 500 was seen closing below the important support level of 1,290.

In the major indices, the Dow Jones Industrial Average (DJIA) closed with a loss of 61.30 or 0.50% at 12,089.96 while NASDAQ index finished down by 30.22 points or 1.11% to 2,702.56. The S&P 500 (SPX) closed lower by 13.99 points or 1.08% to 1,286.17.

The FIIs on Monday stood as net buyer in both equity and debt. Gross equity purchased stood at Rs. 1982.90 crore and gross debt purchased stood at Rs. 2035.70 crore, while the gross equity sold stood at Rs. 1445.30 crore and gross debt sold stood at Rs. 1207.50 crore. Therefore, the net investment of equity and debt reported were Rs. 537.60 crore and Rs. 828.20 crore, respectively. 

Top traded volumes on NSE Nifty - JP Associates 7603534, Hindalco Industries 6845086, HDFC 2854529, Cipla 1655179 and ICICI Bank 1462591.

On BSE, total number of shares traded was 22.70 crore and total turnover stood at Rs. 2434.61 crore. On NSE, total number of shares traded was 43.21 crore and total turnover stood at Rs. 7982.43 crore.

In the NSE Futures and Options segment, total number of contracts traded in index futures was 336094 with a total turnover of Rs. 8522.06 crore. Along with this total number of contracts traded in stock futures were 373491 with a total turnover of Rs. 9164.95 crore. Total numbers of contracts for index options were 1949047 with a total turnover of Rs. 54293.57 crore and total number of contracts for stock options was 83271 with a total turnover of Rs. 2047.60 crore.

Read more about: nifty, nse, bse, sensex
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