Pre Session Market Analysis for Apr 25, 2011

Posted By: Religare
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Pre Session Market Analysis for Apr 25, 2011
The key equity averages are likely to open positive as most of the Asian stocks are trading higher as Credit Suisse Group AG improved its share-price estimate for Mitsubishi UFJ Financial Group Inc.

Japan"s Nikkei 225 is trading up by 0.29% to 9,710.11 following reports that cost of Fukushima nuclear accident will be shared by other utilities along with Tokyo Electric Power Co.

Shanghai Composite is down by 0.53% to 3,010.52 and Hang Seng Index gained 1.01% to 24,138.31. China"s stocks dropped as rising oil prices fuelled concerns that inflation will rise and lead to more policy tightening measures. Separately, Taiwan Weighted and Seoul Composite are trading higher by 0.4% and 0.02% respectively.

In the domestic arena, the markets are likely to follow the rout of global counter part and trade range-bound with upside movement. Oil&Gas, Realty and Auto pivotals will be in focus today.

Previous Session

On Thursday, The domestic equity market closed the last trading day of the week on a firm note following the strong Asian markets that rallied with technology stocks cheered by Apple Inc.'s and Intel Corp.'s results and as commodity producers rose on a rally in crude-oil and gold prices.

Moreover, the positive closing on the Wall Street the other night and buoyant corporate earnings boosted the market sentiment across the board on increasing optimism about sustainability of the economic recovery. Along with this the prediction of normal monsoon this year by India Metrological Department. also lifted the sentiments of the investors.

Also, the European stocks opened in the positive territory. On the domestic front, India"s food inflation increased to 8.74 per cent for the week ended April 9 as compared to 8.28 per cent recorded in the previous week due to rise in price for fruits, meat and poultry products.

However, the inflation data failed to dampen investor"s confidence on the back of upbeat global cues. After opening the session on a strong note, the domestic market pared some of its early gains and soon regained strength to hit fresh intraday high in mid-morning trade.

The market did not able to sustain in the early trade and comes off from the day"s high to touch a fresh intraday low. But soon, the market bounced back in afternoon trade as European shares rose in early trade. A lot of volatility was witnesses during the last two hours or so of trade.

Meanwhile, the Global markets including Indian bourses will remain closed on Friday, 22 April 2011, due to Good Friday. The 30-share Sensex and S&P CNX Nifty closed at around 19,600 and 5,880 levels respectively. Both BSE Mid Cap and BSE Small cap witnessed a marginal buying support.

On Thursday, the U.S. markets higher owed to bunch of better-than-expected earnings.

The tech rich Nasdaq outperformed its counterparts during the past two sessions taking assistance from large-cap tech issues such as Intel (INTC 21.46, +0.05), Apple (AAPL 350.70, +8.29) and Qualcomm (QCOM 56.94, +1.67).

On the economic front, data were disappointing but had no impact on the gains. Initial jobless claims for the week ended April 16 stood at 403,000, above the expected 390,000 claims. Week over week, initial claims came down by 13,000 and continuing claims decreased by 7,000 week over week to 3.70 million.

In the major indices, the Dow Jones Industrial Average (DJIA) closed with a gain of 52.45 points or 0.42% at 12,505.99 while NASDAQ index finished higher by 17.65 points or 0.63% to 2,820.16. The S&P 500 (SPX) closed up by 7.02 points or 0.53% to 1,337.38.

The FIIs on Thursday stood as net buyer in equity and debt. Gross equity purchased stood at Rs. 2543.70 Crore and gross debt purchased stood at Rs. 1259.10 Crore, while the gross equity sold stood at Rs. 2080.80 Crore and gross debt sold stood at Rs. 1074.40 Crore. Therefore, the net investment of equity and debt reported were Rs. 462.90 Crore and Rs. 184.70 Crore.

Top traded Volumes on NSE Nifty - Jaiprakash Associates Ltd. 10757164, ITC Ltd. 9487361, Hindalco Industries Ltd. 8777639, Tata Consultancy Services Ltd. 8666984, Cairn India Ltd. 6242239.

On BSE, total number of shares traded was 29.48 Crore and total turnover stood at Rs. 3603.63 Crore. On NSE, total number of shares traded was 65.33 Crore and total turnover stood at Rs. 13415.71 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 485232 with a total turnover of Rs. 13442.48 Crore. Along with this total number of contracts traded in stock futures were 829277 with a total turnover of Rs. 23504.73 Crore.

Total numbers of contracts for index options were 3522285 with a total turnover of Rs. 103685.94 Crore. and total numbers of contracts for stock options were 199839 with a total turnover of Rs. 6122.09 Crore.

Today, Nifty would have a support at 5,869 and resistance at 5,913 and BSE Sensex has support at 19,552 and resistance at 19,700.

Read more about: bse, nse, sensex, nifty
Story first published: Monday, April 25, 2011, 8:32 [IST]
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