Pre Session Market Analysis for Apr 20, 2011

Posted By: Religare
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Pre Session Market Analysis for Apr 20, 2011
The key equity averages are likely to open positive as most of the Asian stocks are trading higher following strong global cues as the Wall Street closed higher on Tuesday as U.S. housing starts grew.

The MSCI Asia Pacific Index dropped 0.9% to 135.53 with about seven shares advancing for each that fell. Further, Japan"s Nikkei 225 is trading up by 1.43% to 9,575.64 driven by some better than expected arnings fro companies in the US that included Johnson & Johnson, indicating that the world"s biggest economy is recovering. 

Shanghai Composite is up by 0.33% to 3,009.03 and Hang Seng Index gained 0.86% to 23,723.63. Separately, Taiwan Weighted and Seoul Composite are trading higher by 1.24% and 1.72% respectively.

In the domestic arena, the markets are likely to follow the rout of global counter part and trade range-bound with upside movement. HC, IT and TECk pivotals will be in focus today. 

Previous Session

On Tuesday, Indian benchmark indices closed the session on a positive note after witnessing a lot of volatility throughout the trading session. The investors" sentiments boosted on the decline in crude oil prices and higher European markets.

Moreover, the expectations that India Meteorological Department (IMD) is likely to forecast normal rains this year also boosted investors" sentiments. The 30-share Sensex and S&P CNX Nifty closed at around 19,120 and 5,740 levels respectively.

Both BSE Mid Cap and BSE Small cap rendered mild buying support to their higher counterparts as they are up by at least 25 points each. The domestic market started the day on a flat note following weak cues from Asian bourses and firm overnight closing in the U.S bourses. Though stocks slipped deep in the negative zone in the early going, it managed to trim most of the early losses by mid-session on sudden emergence of buyers in IT and Teck counters. This helped broader market to break the neutral line and exhibit with some stability in positive zone, in the early afternoon trade.

The BSE SENSEX was at 19,121.83 up by 30.66 points or by 0.16 % and then NSE Nifty was at 5,740.75 up by 11.65 points or by 0.2 %. The BSE MIDCAP was at 7,141.92 up by 25.8 points or by 0.36 %. while the BSE SMALLCAP was at 8,762.65 up by 25.59 points or by 0.29 %. The BSE Sensex touched intraday high of 19,201.92 and intraday low of 18,976.19.

On Tuesday, the U.S. markets higher after spending the first half of the session listlessly, gains came as natural resource stocks provided some support during the afternoon trade. During the session, companies in the financial space posted results, but most attention was paid to Goldman Sachs (GS 151.86, -1.92) and U.S. Bancorp (USB 25.25, -0.31) as both exceeded earnings expectations, but succumbed to selling.

Further, shares of GS managed to pare losses after they attracted support near the $150 mark. Texas Instruments (TXN 34.54, -0.25) was also pressurized as it failed to meet earnings consensus. Overseas Data featured a mixed bag of PMI Services and Manufacturing readings, but on the US front it was limited to monthly housing starts and building permits.

Housing starts for March grew to an annualized rate of 549,000, above the expected 520,000 units. Building permits improved to an annualized rate of 594,000, exceeding the expected 540,000 building permit rate. Building materials stocks along with steel stocks were benefitted by this news.

Steel stocks rebounded on the back of better-than-expected results from Steel Dynamics (STLD 18.46, +1.00). Energy stocks mustered a collective gain of 1.1% as Oil services stocks were leaders in the energy space as they rebounded from the prior session's slide.

Health care stocks and industrial stocks also rallied and posted a gain of 0.9%. Health care space was led by Dow component Johnson & Johnson (JNJ 62.69, +2.23), which attracted support after it posted a better-than-expected bottom line and issued an improved outlook.

In the major indices, the Dow Jones Industrial Average (DJIA) closed with a gain of 65.16 points or 0.53% at 12,266.75 while NASDAQ index finished higher by 9.59 points or 0.35% to 2,744.97. The S&P 500 (SPX) closed up by 7.48 points or 0.57% to 1,312.62.

The FIIs on Tuesday stood as net seller in equity and net buyer in debt. Gross equity purchased stood at Rs. 2550.90 Crore and gross debt purchased stood at Rs. 2196.00 Crore, while the gross equity sold stood at Rs. 3341.50 Crore and gross debt sold stood at Rs. 1858.70 Crore. Therefore, the net investment of equity and debt reported were Rs. (790.60) Crore and Rs. 337.30 Crore.

Top traded Volumes on NSE Nifty - Jaiprakash Associates Ltd. 11004415, Cairn India Ltd. 10385405, ITC Ltd. 7986627, DLF Ltd. 6667480 and Hindalco Industries Ltd. 5369332.

On BSE, total number of shares traded was 58.97 Crore and total turnover stood at Rs. 12775.98 Crore. On NSE, total number of shares traded was 60.59 Crore and total turnover stood at Rs. 10826.74 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 519554 with a total turnover of Rs. 13926.00 Crore. Along with this total number of contracts traded in stock futures were 584233 with a total turnover of Rs. 16221.90 Crore.

Total numbers of contracts for index options were 3428479 with a total turnover of Rs. 99653.40 Crore. and total numbers of contracts for stock options were 136377 with a total turnover of Rs. 4063.99 Crore.

Today, Nifty would have a support at 5,711 and resistance at 5,797 and BSE Sensex has support at 19,025 and resistance at 19,312.

Read more about: bse, nse, nifty, sensex
Story first published: Wednesday, April 20, 2011, 8:32 [IST]
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