Benchmark to likely open negative

Posted By: Staff
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Benchmark to likely open negative
The key equity averages are likely to open negative as most of the Asian stocks are trading lower as the Wall Street closed lower as it failed to initial momentum.

Further, Japan"s Nikkei 225 is trading lower by 0.36% at 9,443.04 as stocks of semiconductors, electric appliances and precision instruments dropped amid concerns about economic slowdowns in the U.S. and China, as well as prevailing uncertainty about financial trouble in Europe.

Shanghai Composite is down by 0.03% to 2,766.19 and Hang Seng Index dropped 0.49% to 22,620.32. Separately, Seoul Composite and Jakarta Composite are trading lower by 1.02% and 0.38%, respectively. In the domestic arena, the markets are likely to follow the rout of global counterpart and trade range-bound with downside movement. Metal, Realty and IT pivotals will be in focus today.

Today, Nifty would have a support at 5,367 and resistance at 5,420 and BSE Sensex has support at 17,920 and resistance at 18,101.

Previous Session

On Tuesday, the domestic bourses ended the session on a quiet note after the benchmark indices witnessed significant volatility throughout the session. During the morning trade, the leading indices across Asia were seen fluctuating between gains and losses. In Japan, exporter oriented stocks declined after reports signaled economic growth is slowing in the U.S. and Europe, while shipping lines advanced on higher cargo rates.

Goldman Sachs Group Inc. lowered their forecasts for China"s growth as the country"s focus on taming inflation is expected to hamper growth. After opening in the positive terrain, the benchmark indices started trading volatile. Despite of coming near the baseline for a couple of times, the benchmarks managed to stay in the positive terrain.

During the final hours a bout of selling came in which took the market to the lowest point of the day. However, such losses were recovered towards the end and the benchmarks closed above the baseline. The market was seen trading direction lessly in a tight range throughout the session, due to lack of driving factors. The positive opening for the European markets has well supported the stocks in the domestic arena to close in the positive terrain.

The BSE Sensex closed at 18,011.97 up by 18.64 points or by 0.10% and the NSE Nifty closed at 5,394.85, higher by 8.30 points or by 0.15%. The BSE Midcap was at 6,661.22, lower by 0.25 points and the BSE SmallCap closed at 8,053.96, decreasing by 3.06 points or by 0.04%. The BSE Sensex touched intraday high of 18,110.39 and intraday low of 17,933.94.

On Tuesday, the U.S. markets closed lower as stocks failed to rebound from the prior session's drop initially, thus leading to close with modest losses. Traders showed some buying interest tracking positive cues from the markets abroad and a drop in the dollar. But, lack of conviction quickly became apparent as they failed to hold early gains as stocks began to lose direction and then drift lower.

Most of the major sectors closed in a mixed fashion, but weakness among tech stocks (-0.4%) weighed on the Nasdaq, which consistently underperformed its counterparts. On the other hand, energy stocks sported strong gains for the entire session and closed higher by 1.3%. This strength in the sector is owed to 2% gain by crude oil prices, which closed just below $99.60 per barrel.

Corporate news flow was lacking and economic data showed improvement in April new home sales to an annualized rate of 323,000 units from a pace of 301,000 units in the prior month.

In the major indices, the Dow Jones Industrial Average (DJIA) closed with a loss of 25.05 or 0.2% at 12,356.21 while NASDAQ index finished down by 12.74 points or 0.46% to 2,746.16. The S&P 500 (SPX) closed lower by 1.09 points or 0.08% to 1,316.28.

The FIIs on Tuesday stood as net seller in equity and net buyer in debt. Gross equity purchased stood at Rs. 1,972.10 Crore and gross debt purchased stood at Rs. 1,405.60 Crore, while the gross equity sold stood at Rs. 2,110.20 Crore and gross debt sold stood at Rs. 419.10 Crore. Therefore, the net investment of equity and debt reported were Rs. (138.10) Crore and Rs. 986.50 Crore.

Top traded Volumes on NSE Nifty - DLF Ltd. 8,183,275, Jaiprakash Associates Ltd. 6,766,169, Hindalco Industries Ltd. 6,722,273, ITC Ltd. 5,954,668, Power Grid Corporation of India Ltd. 5,555,356.

On BSE, total number of shares traded was 21.50 Crore and total turnover stood at Rs. 2,544.19 Crore. On NSE, total number of shares traded was 50.02 Crore and total turnover stood at Rs. 9,619.86 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 591,938 with a total turnover of Rs. 15,022.77 Crore. Along with this total number of contracts traded in stock futures were 875,328 with a total turnover of Rs. 20,817.90 Crore. Total numbers of contracts for index options were 3,656,615 with a total turnover of Rs. 100,273.33 Crore. and total numbers of contracts for stock options were 144,586 with a total turnover of Rs. 3,753.39 Crore.

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