Pre-market: Markets to witness negative opening Analysis for Jun 16, 2014

Posted By: Religare
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SGX nifty directs a lower opening on the bourses today. During the last week, massive profit booking and concerns about Iraq affected the trading adversely. In the week ahead, the situation seems to intensify as the US President has reiterated Friday that the Iraqi government needs support to address escalating violence in the country but stressed that the he will not send U.S. troops back into combat. Obama noted that he has asked his national security team to prepare a range of other options to help Iraq's security forces. Meanwhile, Union Budget and Monsoon will be the two major triggers in the near term on the domestic front. As of today, the WPI data will be eyed amid various global developments.

Asian markets have turned into a mixed performance in today"s trade. While Shanghai Composite is trading 0.31% higher, NIKKEI 225 and Hang Seng are trading 0.19% and 0.66% lower on concerns over Iraq issues and stronger Yen. Chinese stocks are back in favor as growth in industrial output and retail sales accelerated in May while new bank loans exceeded analyst estimates. The markets will be eying the Federal Reserve"s monetary policy decision due on Wednesday for further cues. Traders are also likely to keep an eye on the Fed's economic projections as well as Fed Chair Janet Yellen's accompanying press conference. Ahead of the Fed meeting, trading could be impacted by the release of reports on industrial production, homebuilder confidence, housing starts, and consumer price inflation.

While buying interest remained somewhat subdued, stocks moved modestly higher over the course of the trading day on Friday. The slim gains on the day partly offset the notable pullback seen in the two previous sessions. The major averages saw some volatility in the final hour of trading but managed to close in positive territory. The Dow rose 41.55 points or 0.3 percent to 16,775.74, the NASDAQ climbed 13.02 points or 0.3 percent to 4,310.65 and the S&P 500 advanced 6.05 points or 0.3 percent to 1,936.16. Despite the modest gains on the day, the major averages all moved lower for the week. The Dow and the S&P 500 fell by 0.9 percent and 0.7 percent, respectively, while the NASDAQ edged down by 0.2 percent. A positive reaction to upbeat guidance from Intel (INTC) contributed to the modest strength on Wall Street, with the semiconductor giant surging up by 6.8 percent. While the news contributed to some strength in the tech sector, traders seemed reluctant to resume buying stocks amid concerns about escalating violence in Iraq.

On the economic front, the Labor Department released a report before the start of trading showing an unexpected decrease of 0.2 percent in U.S. producer prices in the month of May, with the drop partly reflecting a notable decrease in prices for trade services.

Top traded Volumes on NSE Nifty – DLF Ltd. 14978949.00, IDFC Ltd. 11017414.00, Hindalco Industries Ltd. 11006055.00, Bharat Heavy Electricals Ltd. 10099737.00, NTPC Ltd. 9139412.00

On NSE, total number of shares traded was 132.96 Crore and total turnover stood at Rs. 22645.27 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 520794 with a total turnover of Rs. 19849.19 Crore. Along with this total number of contracts traded in stock futures were 977954 with a total turnover of Rs. 37712.85 Crore. Total numbers of contracts for index options were 4043661 with a total turnover of Rs. 154200.94 Crore. and total numbers of contracts for stock options were 449677 with a total turnover of Rs. 18088.69 Crore.

The FIIs on 13/06/2014 stood as net buyer in equity and debt. Gross equity purchased stood at Rs. 6045.78 Crore and gross debt purchased stood at Rs. 2315.58 Crore, while the gross equity sold stood at Rs. 3551.81 Crore and gross debt sold stood at Rs. 413.24 Crore. Therefore, the net investment of equity and debt reported were Rs. 2493.97 Cr

Story first published: Monday, June 16, 2014, 7:36 [IST]
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