Pre Session Market Analysis for Apr 29, 2011

Posted By: Religare
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Pre Session Market Analysis for Apr 29, 2011
The key equity averages are likely to open negative as most of the Asian stocks are trading lower as U.S. economic growth and South Korean industrial production slowed, fuelling concern about earnings improvement. The MSCI Asia Pacific excluding Japan Index fell 0.3% to 506.46 with three stocks falling for every two that advanced. Further, Japan"s Nikkei 225 will be closed today.

The Shanghai Composite is up by 0.06% to 2,888.75 and Hang Seng Index lost 0.24% to 23,748.57. Chinese stocks pared its initial gains as tighter bank lending combined with a stronger yuan against the dollar dampened the outlook of the economy.

Separately, Straits Times and Seoul Composite are trading down by 0.17% and 0.66% respectively. In the domestic arena, the markets are likely to follow the rout of global counterpart and trade range-bound with upside movement. Metal, Oil&Gas and Realty pivotals will be in focus today.

Previous Session

On Thursday, The domestic bourses ended the FNO expiry day on a downbeat note as the benchmark indices gave up more than 0.80% each during the session. The Realty space took the major hit during the session as participants expected a fresh bout of rate hike during RBI"s policy announcement next week.

During the morning trade, most of the Asian stocks are trading higher following a positive close in the overnight Wall Street that came after the Federal Reserve improved its pledge to boost U.S. economic growth with low interest rates.

Japanese market traded higher as companies including Advantest Corp. registered better-than-expected earnings and positive comments from the U.S. Federal Reserve boosted investors" sentiments. Soon after opening in the positive, the benchmark indices dipped below the baseline as the Realty sector faced hefty sell-offs expecting a fresh rate hike from the RBI in its policy announcement during next week.

As the day progressed, the market continued its journey southwards as the Realty space losses bulged. Further, Sensex heavyweight Reliance Industries continued its downward rally after reports came yesterday, that the company may face penalty from the government due to falling short of targeted gas production at its D6 block. The positive opening for the European markets failed to make any impact in the domestic front.

The BSE Sensex closed at 19,282.02, down by 156.67 points or by 0.81% and NSE Nifty closed at 5,785.45, lower by 48.45 points or by 0.83%. The BSE Midcap was at 7,168.45 down by 70.26 points or by 0.97% and the BSE SmallCap closed at 8,854.08, lower by 42.96 points or by 0.48%. The BSE Sensex touched intraday high of 19,542.05 and intraday low of 19,265.92.

On Thursday, the U.S. markets closed higher on gradual upward momentum, thus assisting the major equity averages to extend their recent highs. Initially, stocks traded listlessly due to bunch of news that struck. Participants witnessed another big batch of quarterly reports that were overlooked as the release of the advance reading on first quarter GDP.

The economy advanced during January through March at an annualized rate of 1.8%, which is greater than the expected 1.7% increase, participants were disappointed with the latest initial jobless claims figures. Initial claims for the week ended April 23 stood at 429,000, which is greater than the expected 390,000 initial claims.

On the earning front, reports didn't induce much trading in the overall market, but there were a few movers. Akamai Tech (AKAM 34.94, -6.04) fell sharply as participants ignored an upside earnings surprise and plans to repurchase shares to focus on the company's cautious commentary and outlook.

Dow component Exxon Mobil (XOM 87.34, -0.44) moved fractionally lower, despite an upside earnings surprise. Additionally, PepsiCo (PEP 69.72, +1.79), eBay (EBAY 34.00, -0.03), Colgate-Palmolive (CL 82.97, +1.91), AstraZeneca (AZN 49.90, -1.72), BristolMyersSquibb (BMY 28.29, +0.01), and Aetna (AET 41.45, +1.64) all posted better-than-expected bottom line results.

In the major indices, the Dow Jones Industrial Average (DJIA) closed with a gain of 72.35 points or 0.57% at 12,763.31 while NASDAQ index finished higher by 2.65 points or 0.09% to 2,872.53. The S&P 500 (SPX) closed up by 4.82 points or 0.36% to 1,360.48.

The FIIs on Thursday stood as net seller in equity and in debt. Gross equity purchased stood at Rs. 2146.30 Crore and gross debt purchased stood at Rs. 900.10 Crore, while the gross equity sold stood at Rs. 2622.00 Crore and gross debt sold stood at Rs. 1000.80 Crore. Therefore, the net investment of equity and debt reported were Rs. (475.70) Crore and Rs. (100.70) Crore.

Top traded Volumes on NSE Nifty - Jaiprakash Associates Ltd. 11916008, ICICI Bank Ltd. 11493180, Cairn India Ltd. 10501653, DLF Ltd. 9720614, Oil And Natural Gas Corporation Ltd. 8981359.

On BSE, total number of shares traded was 30.42 Crore and total turnover stood at Rs. 3028.47 Crore. On NSE, total number of shares traded was 83.44 Crore and total turnover stood at Rs. 15898.72 Crore. 

On NSE Future and Options, total number of contracts traded in index futures was 760017 with a total turnover of Rs. 21011.29 Crore. Along with this total number of contracts traded in stock futures were 1366221 with a total turnover of Rs. 36242.99 Crore. Total numbers of contracts for index options were 5503888 with a total turnover of Rs. 161031.04 Crore. and total numbers of contracts for stock options were 169921 with a total turnover of Rs. 4920.32 Crore.

Today, Nifty would have a support at 5,756 and resistance at 5,796 and BSE Sensex has support at 19,185 and resistance at 19,320.

Read more about: bse, nse, sensex, nifty
Story first published: Friday, April 29, 2011, 8:42 [IST]
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