Pre Session Market Analysis for Apr 18, 2011

Posted By: Religare
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Pre Session Market Analysis for Apr 18, 2011
The key equity averages are likely to open positive as most of the Asian stocks are trading higher as the Wall Street closed higher after release of some positive data.

Japan"s Nikkei 225 is trading lower by 0.19% to 9,573.04 owed to strength in Yen, thus raising concerns about the export outlook of the country. Further, Shanghai Composite is up by 0.28% to 3,059.21 and Hang Seng Index grew 0.44% to 24,112.54. Separately, Straits Times and Taiwan Weighted are trading higher by 0.39% and 0.31% respectively.

In the domestic arena, the markets are likely to follow the route of global counter part and trade range-bound with upside movement. Bankex, Oil&Gas and CG (Capital Goods)  pivotals will be in focus today. 

Previous session

On Friday, Indian benchmark indices witnessed hefty selling pressures across the sectorial indices on weak global cues and below than expected quarterly numbers from the IT bellwether Infosys Technologies Ltd. The sentiments across the board was bearish since the initial bell market sentiments were deprived on the back of poor inflation data, disappointing earnings guidance by IT major, Infosys and weak global cues. Selling was high in capital goods and auto stocks.

European markets opened positive, after a weak lead from Wall Street as investors look forward to the release of economic data related to euro-zone trade balance, U.S. Empire State manufacturing survey, industrial production. Moody's Investors Service's downgraded Ireland's foreign and local currency government bond ratings which has put some pressure on markets.

Asian stock markets were mixed on Friday, as investors traded cautiously ahead of Chinese economic data due later in the day. Investor sentiments were down as they fear the Reserve bank Of India might go for another round of policy rate hikes in its policy review meeting, scheduled for May 3.

The BSE Sensex closed at 19,386.82 down by 310.04 points or by 1.57 % and NSE Nifty closed at 5,824.55, down by 86.95 points or by 1.47%. The BSE MIDCAP was at 7,209.17 down by 14.45 points or by 0.2 %. The BSE SMLCAP was at 8,808.16 down by 15.3 points or by 0.17 %. The BSE Sensex touched intraday high of 19,700.96 and intraday low of 19,337.12.

On Friday, the U.S. markets managed to closed with modest gains despite choppy action initially as the sentiment gradually improved as participants settled in after being showered with a bunch of headlines.

Among the significant news, downgrading of Ireland's debt to just above junk status at Moody's, increase in euro zone CPI by 1.4% in March and growth in China's CPI for March by 5.4%. Further, China's producer prices grew by 7.3% in the same month, while the country's GDP officially increased by 9.7% in the first quarter.

On the corporate front, news weren"t inspiring as earnings from Google (GOOG 530.70, -47.81) failed to meet the Wall Street expectation and Infosys (INFY 63.21, -9.80) disappointed with its downside guidance. Additionally, Bank of America (BAC 12.82, -0.31) also came with a disappointing report and also announced that it has reached an agreement on mortgage repurchases with Assured Guaranty (AGO 17.60, +3.43). However, domestic data assisted stocks to increase its mid-day gains.

Firstly, consumer prices for March grew by 0.5%, in line with the expectation. Excluding food and energy, consumer prices increased by 0.1%, that was below the expected 0.2% growth. The New York Empire Manufacturing Survey for April stood at 21.7, which was above its prior month reading of 17.5 expected reading of 15.0.

The preliminary Consumer Sentiment Survey for April from the University of Michigan came in at 69.6, above the expected 66.5. Even though, stocks were failed to extend their stretch as the S&P 500 encountered resistance near the 1321-1322 level, their inability to push higher didn"t counter with any kind of negative response.

In the major indices, the Dow Jones Industrial Average (DJIA) closed with a gain of 56.68 points or 0.46% at 12,341.83 while NASDAQ index finished higher by 4.43 points or 0.16% to 2,764.65. The S&P 500 (SPX) closed up by 5.16 points or 0.39% to 1,319.68.

The FIIs on Friday stood as net buyer in equity and debt. Gross equity purchased stood at Rs. 3313.50 Crore and gross debt purchased stood at Rs. 2102.30 Crore, while the gross equity sold stood at Rs. 3110.30 Crore and gross debt sold stood at Rs. 1585.50 Crore. Therefore, the net investment of equity and debt reported were Rs. 203.20 Crore and Rs. 516.80 Crore.

Top traded Volumes on NSE Nifty - Jaiprakash Associates Ltd. 31274801, ITC Ltd. 11102959, Infosys Technologies Ltd. 10127467, DLF Ltd. 8058445, Hindalco Industries Ltd. 6983239.

On BSE, total number of shares traded was 34.32 crore and total turnover stood at Rs 3691.74 crore. On NSE, total number of shares traded was 67.56 crore and total turnover stood at Rs 15127.45 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 5,794 and resistance at 5,851 and BSE Sensex has support at 19,289 and resistance at 19,473.

Read more about: bse, nse, sensex, nifty, shares
Story first published: Monday, April 18, 2011, 8:32 [IST]
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