Pre Session Market Analysis for Apr 21, 2011

Posted By: Religare
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Pre Session Market Analysis for Apr 21, 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 Wednesday after U.S. companies including Apple Inc. (AAPL) registered better than expected earnings indicating the increase in pace of global economic recovery.

The MSCI Asia Pacific Index gained 0.9% to 138.19 with about two shares advancing for each that fell.

Further, Japan"s Nikkei 225 is trading up by 0.58% to 9,662.64 driven by some better than expected earnings from companies in the US. Shanghai Composite is up by 0.70% to 3,028.12 and Hang Seng Index gained 1.13% to 24,160.49. Taiwan Weighted and Seoul Composite are trading higher by 1.89% and 1.40% 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 Wednesday, the Indian bourses closed with decent gains today on the back of prediction of normal monsoon this year by India Metrological Department. Sentiments were also boosted after the release of upbeat quarterly earnings report of one of the largest IT firms of India, HCL Tech which reported profits, higher than market expectations.

Buying was high in Teck and IT stocks. European markets opened positive, amidst positive earnings release by major corporates. Results from LVMH Moet Hennessy Louis Vuitton SA (MC) to SKF AB (SKFB) and Novartis AG (NOVN) beat analysts" estimates.

Asian stocks remained firm, following gains in Wall Street on Tuesday, and upbeat corporate earnings. Investors' concerns about Standard & Poor's warning to US, eased on Tuesday following better than expected corporate earnings figures in the US.

Back on the domestic front, India"s exports increased 37.5% in 2010-11-their fastest annual growth since independence-despite a strong rupee and weak demand in developed markets, according to the data released on Tuesday.

Commerce Secretary Rahul Khullar said that the current account deficit could be in the range of 2.5% to 2.7% (of GDP), but the finance ministry is to give the final figures after taking into account services exports and invisibles. The data added to the positive tone to the markets.

The BSE SENSEX was at 19,470.98 up by 349.15 points or by 1.83 % and then NSE Nifty was at 5,851.65 up by 110.9 points or by 1.93 %. The BSE MIDCAP was at 7,225.87 up by 83.95 points or by 1.18 %. while the BSE SMLCAP was at 8,875.8 up by 113.15 points or by 1.29 %. The BSE Sensex touched intraday high of 19,484.77 and intraday low of 19,171.03.

On Wednesday, the U.S. markets closed higher as solid gains on the Asian front stimulated participants" and gains between 2% and 3% by Europe's primary bourses provided a decidedly positive backdrop initially. Further, latest round of earnings results also assisted the market to garner gains.

Intel (INTC 21.41, +1.55) registered one of the strongest gains of any blue chip following its upside earnings surprise and upside guidance. 

This lifted the Dow to its best level in more than two years and also boosted other players in the other semiconductor space, such that the Philadelphia Semiconductor Index settled with a 4.3% gain. Additionally, Yahoo! (YHOO 16.87, +0.75) added to the overall strength of the tech sector, while IBM (IBM 164.75, -0.54) was among the few tech-related issues that failed to find buyers, even though the company posted better-than-expected earnings.

Apple (AAPL 342.41, +4.55) gained on its latest quarterly report, but it was still a relative laggard in the tech-rich Nasdaq. Energy stocks reported strong gains registered a strong push higher in morning trade and then held steady to their gains in afternoon action. 

In the major indices, the Dow Jones Industrial Average (DJIA) closed with a gain of 186.79 points or 1.52% at 12,453.54 while NASDAQ index finished higher by 57.54 points or 2.1% to 2,802.51. The S&P 500 (SPX) closed up by 17.74 points or 1.35% to 1,330.36. 

The FIIs on Wednesday stood as net buyer in equity and net seller in debt. Gross equity purchased stood at Rs. 3917.60 Crore and gross debt purchased stood at Rs. 837.40 Crore, while the gross equity sold stood at Rs. 1853.60 Crore and gross debt sold stood at Rs. 1978.90 Crore. Therefore, the net investment of equity and debt reported were Rs. 2064.00 Crore and Rs. (1141.50) Crore.

Top traded Volumes on NSE Nifty - Jaiprakash Associates Ltd. 11927265, Reliance Communications Ltd. 11824010, Bharti Airtel Ltd. 7479192, Hindalco Industries Ltd. 7044590, HCL Technologies Ltd. 6881265.

On BSE, total number of shares traded was 35.41 Crore and total turnover stood at Rs. 3685.13 Crore. On NSE, total number of shares traded was 74.53 Crore and total turnover stood at Rs. 13008.13 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 603622 with a total turnover of Rs. 16431.24 Crore. Along with this total number of contracts traded in stock futures were 761927 with a total turnover of Rs. 20830.64 Crore.

Total numbers of contracts for index options were 3866443 with a total turnover of Rs. 113044.85 Crore. and total numbers of contracts for stock options were 178288 with a total turnover of Rs. 5224.27 Crore.

Today, Nifty would have a support at 5,821 and resistance at 5,891 and BSE Sensex has support at 19,372 and resistance at 19,606.

Read more about: bse, nse, nifty, sensex
Story first published: Thursday, April 21, 2011, 8:52 [IST]
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