Pre Session Market Analysis for Apr 27, 2011

Posted By: Religare
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Pre Session Market Analysis for Apr 27, 2011
The key equity averages are likely to open positive as most of the Asian stocks are trading higher amid signs that the global economy recovery is on track and better-than-expected company earnings.

Japan"s Nikkei 225 is trading higher by 1.29% to 9,682.21 as U.S. consumer confidence improved and Japan"s government announced that 90% of the country"s earthquake-hit factories will resume production by July.

Shanghai Composite is up by 0.35% to 2,949.41 and Hang Seng Index gained 0.51% to 24,128.74. Separately, Straits Times and Seoul Composite are trading up by 0.68% and 0.22% respectively. In the domestic arena, the markets are likely to follow the rout of global counterpart and trade range-bound with upside movement. IT, TECk and Auto pivotals will be in focus today.

Previous Session

On Tuesday, the domestic bourses ended with mild losses after struggling deep into the negative terrain for the majority of the session. A complete V shape recovery was witnessed post mid session on sustained buying at lower levels.

Further, positive opening for the European bourses had helped the domestic stocks to pare off the losses. During the morning trade, the Asian stocks traded lower tracking the negative closing for the overnight US markets.

The Chinese stocks plunged after the country"s banking regulator set the capital adequacy requirements higher for the nation"s five biggest lenders above the minimum 11.5% ratio amidst concern that credit risks may rise. Soon after opening in the negative, the benchmark indices plunged further and the losses were bulged.

The benchmark Nifty was seen dragging near the 5,790 mark and taking support around such levels twice, it bounced back smartly during the second half of the session. The market pared off most of its losses as buying came in at lower levels among the benchmark heavyweights like Bharti Airtel, Hindalco Industries and Tata Motors among others.

The BSE Sensex closed at 19,545.35 down by 38.96 points or by 0.20% and NSE Nifty closed at 5868.40, lower by 6.10 points or by 0.10%. The BSE Midcap was at 7,239.28 down by 2.30 points or by 0.03% and the BSE SmallCap closed at 8,896.86, lower by 3.04 points or by 0.03%. The BSE Sensex touched intraday high of 19,626.13 and intraday low of 19,306.92.

On Tuesday, the U.S. markets closed higher due to better-than-expected earnings that took both the Dow and S&P 500 to their best level in almost three years and the Nasdaq extended its three-year high. Despite the uncertainty over tomorrow's FOMC policy statement, market participants were in the mood to buy.

This led the stocks to move up by as much as 1% at session highs and advancing share volume was more than double declining share volume. Buying interest was generally broad, but industrial stocks were the top performers with a gain of 1.8% led by Illinois Tool Works (ITW 57.73, +3.32), which registered an upside earnings surprise combined with the report by issuing a strong revenue forecast.

Further, UPS (UPS 74.30, +0.66) benefited from a nice bid on the back of its latest quarterly report and forecast. Ford (F 15.66, +0.12) also attracted some interest following its latest quarterly announcement. Whereas, Ford's Japanese competitors Honda (HMC 37.61, -0.22), Toyota (TM 78.66, -0.85), and Nissan (NSANY 18.76, +0.31) failed to be at par with Ford amid news that their rating outlooks were lowered by analysts at S&P due to the impact of the massive earthquakes in Japan last month.

Airline stocks ascended sharply with news that earnings from both Delta Air Lines (DAL 9.99, +0.99) and US Airways (LCC 8.80, +0.52) exceeded the Wall Street expectation. Blue chip IBM (IBM 168.49, +0.82) gathered a modest gain, but lagged the overall market after it declared a 15% increase to its dividend and the designation of $8 billion for share repurchases.

In the major indices, the Dow Jones Industrial Average (DJIA) closed with a gain of 115.49 points or 0.93% at 12,595.37 while NASDAQ index finished higher by 21.66 points or 0.77% to 2,847.54. The S&P 500 (SPX) closed up by 11.99 points or 0.9% to 1,347.24.

The FIIs on Tuesday stood as net seller in equity and net buyer in debt. Gross equity purchased stood at Rs. 1,563.60 Crore and gross debt purchased stood at Rs. 1,055.70 Crore, while the gross equity sold stood at Rs. 2,834.00 Crore and gross debt sold stood at Rs. 395.80 Crore. Therefore, the net investment of equity and debt reported were Rs. (1,270.40) Crore and Rs. 659.90 Crore.

Top traded Volumes on NSE Nifty - Jaiprakash Associates Ltd. 9936345, Hindalco Industries Ltd. 9563112, Cairn India Ltd. 8782686, Sterlite Industries (India) Ltd. 8579137, ITC Ltd. 7802065.

On BSE, total number of shares traded was 31.36 Crore and total turnover stood at Rs. 3096.70 Crore. On NSE, total number of shares traded was 65.89 Crore and total turnover stood at Rs. 11995.31 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 407516 with a total turnover of Rs. 11483.92 Crore. Along with this total number of contracts traded in stock futures were 904035 with a total turnover of Rs. 24862.27 Crore. Total numbers of contracts for index options were 2442758 with a total turnover of Rs. 71992.00 Crore. and total numbers of contracts for stock options were 130722 with a total turnover of Rs. 4019.27 Crore.

Today, Nifty would have a support at 5,851 and resistance at 5,912 and BSE Sensex has support at 19,496 and resistance at 19,691.

Read more about: bse, nse, sensex, nifty
Story first published: Wednesday, April 27, 2011, 8:32 [IST]
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