Pre Session Market Analysis for Apr 26, 2011

Posted By: Religare
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Pre Session Market Analysis for Apr 26, 2011
The key equity averages are likely to open negative as most of the Asian stocks are trading lower as most of the companies failed to meet earnings estimates for FY10. The MSCI Asia Pacific Index dropped 0.5% to 137.85 with two shares falling for each that advanced.

Japan"s Nikkei 225 is trading lower by 0.98% to 9,577.64 as participants disposed their positions as companies reported lacklustre earnings for fiscal 2010 after being impacted by the earthquake. The Shanghai Composite is down by 0.45% to 2,951.69 and Hang Seng Index dropped 0.74% to 23,960.78.

Straits Times and Seoul Composite are trading lower by 0.4% and 0.41% respectively. In the domestic arena, the markets are likely to follow the rout of global counterpart and trade range-bound with downside movement. Oil&Gas, Metal and Auto pivotals will be in focus today.

Previous Session

On Monday, The domestic bourses ended the first trading session of the week on a downbeat note as the benchmark indices closed in the negative terrain after hovering across the baseline throughout the session. During the morning trade, the Asian stocks traded higher as Credit Suisse Group AG improved its share-price estimate for Mitsubishi UFJ Financial Group Inc.

The Japanese market traded up following reports that cost of Fukushima nuclear accident will be shared by other utilities along with Tokyo Electric Power Co. However, the Chinese stocks dropped after rising oil prices fuelled concerns that inflation will rise and lead to more policy tightening measures. Soon after opening in the negative, the benchmark indices surged above the neutral line tracking the positive Asian cues.

The US market closed higher on Friday which also boosted the morning sentiment. However, as the day progressed, the market turned volatile and the benchmarks see-sawed across the unchanged zone. A bout of selling came in during the final hour of trade and the benchmarks were dragged in the negative terrain and finally closed with mild losses. Sensex heavyweight Reliance Industries plunged by 2.97% during today"s trade. The positive opening for the European bourses had failed to make any impact in the domestic arena.

The BSE Sensex closed at 19,584.31 down by 17.92 points or by 0.09% and NSE Nifty closed at 5,874.50, lower by 10.20 points or by 0.17%. The BSE Midcap was at 7,241.58 higher by 6.25 points or by 0.09% and the BSE SmallCap closed at 8,899.90, up by 21.33 points or by 0.24%.

On Monday, the U.S. markets closed mix as NASDAQ registered modest gains, while the Dow and the S&P closed marginally lower. Participants struggled for direction as Europe's major bourses were closed for holiday observance and that there were only a handful of corporate-related news and earnings announcements, which failed to have any impact on the trade.

On the economic front, new home sales improved to an annualized rate of 300,000 units in March as compared to the 270,000 units in the prior month. Stocks lacked leadership, tech stocks emerged to be the best performing sector, but they mustered a gain of merely 0.2%. Meanwhile, a 0.6% loss made energy stocks the worst performers.

The energy sector's slide is owed to decline in oil prices that led the commodity to close fractionally lower. Further, a increase in gold prices to a new record high before closing lower helped the SPDR Gold Trust ETF (GLD 146.87, +0.13) register its own record high before paring some of its gains into the close.

In the major indices, the Dow Jones Industrial Average (DJIA) closed with a loss of 26.11 points or 0.21% at 12,479.88 while NASDAQ index finished higher by 5.72 points or 0.2% to 2,820.16. The S&P 500 (SPX) closed down by 2.13 points or 0.16% to 1,335.25.

The FIIs on Monday stood as net buyer in equity and debt. Gross equity purchased stood at Rs. 2841.80 Crore and gross debt purchased stood at Rs. 1355.70 Crore, while the gross equity sold stood at Rs. 2219.40 Crore and gross debt sold stood at Rs. 649.80 Crore. Therefore, the net investment of equity and debt reported were Rs. 622.40 Crore and Rs. 705.90 Crore.

Top traded Volumes on NSE Nifty - Sterlite Industries (India) Ltd. 16650487, Jaiprakash Associates Ltd. 6757017, Infrastructure Development Finance Company Ltd. 4590222, Cairn India Ltd. 4573053, Sesa Goa Ltd. 4358878.

On BSE, total number of shares traded was 25.70 Crore and total turnover stood at Rs. 2731.29 Crore. On NSE, total number of shares traded was 49.40 Crore and total turnover stood at Rs. 10076.81 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 5,815 and resistance at 5,903 and BSE Sensex has support at 19,388 and resistance at 19,681.

Read more about: bse, nse, sensex, nifty
Story first published: Tuesday, April 26, 2011, 8:42 [IST]
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