Market to open positive. Increase in oil and copper prices

Posted By: Staff
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Market to open positive. Bullish on oil and copper
The key equity averages are likely to open positive as most of the Asian stocks are trading higher driving the regional benchmark index to its best performance during the current month, as a result of increase in oil and copper prices.

The MSCI Asia Pacific Index rose 1% to 132.28 with about five stocks advancing for each that fell. Further, Japan"s Nikkei 225 is trading higher by 1.29% at 9,544.68 as the commodities prices increased on weakening Yen.

Shanghai Composite is up by 0.74% to 2,761.98 and Hang Seng Index gained 0.35% to 22,826.88. Separately, Seoul Composite and Jakarta Composite are trading higher by 1.24% and 0.67%, respectively. In the domestic arena, the markets are likely to follow the rout of global counterpart and trade range-bound with upside movement. Metal, CG and FMCG pivotals will be in focus today.

Today, Nifty would have a support at 5,321 and resistance at 5,414 and BSE Sensex has support at 17,757 and resistance at 18,070.

Previous Session

On Wednesday, the domestic bourses ended the session on a bearish note after the Capital Goods, IT and Realty space faced huge sell-offs. During the morning trade, most of the Asian stocks are trading lower as the Wall Street closed lower after it failed to hold on to the initial momentum.

The Japanese market traded weak as stocks of semiconductors companies, electric appliances and precision instruments dropped amidst concerns about economic slowdowns in the U.S. and China, as well as prevailing uncertainty about financial trouble in Europe. After witnessing a gap down opening, the benchmark indices plunged further.

As the day progressed, no sign of recovery was seen and the benchmarks continued making fresh intraday lows. The disappointing earnings report for Realty major DLF dampened the sentiment in the domestic front. The benchmark Nifty was dragged near the 5,330 mark, from where a mild recovery took place. However, it was not enough to make up for the hefty losses incurred during the session and finally the benchmarks closed with nearly 1% losses each.

The negative opening for the European markets amidst reports of volcanic ash from Iceland disrupting air carriers in the region, had further dampened the sentiment.

The BSE Sensex closed at 17,847.24 down by 164.73 points or by 0.91% and the NSE Nifty closed at 5,348.95, lower by 45.90 points or by 0.85%. The BSE Midcap was at 6,623.09, lower by 38.13 points or 0.57% and the BSE SmallCap closed at 8,001.72, decreasing by 52.24 points or by 0.65%. The BSE Sensex touched intraday high of 17,976.36 and intraday low of 17,786.13.

On Wednesday, the U.S. markets closed higher as resource related stocks rallied thus assisting the broad market to overcome initial selling to post its first gain in four sessions. Losses in the prior three sessions and renewed weakness among the major markets across the world pressurised the trade initially, besides the latest durable goods orders data didn't help. On the corporate front, news flow picked up, but it failed to offer much encouragement to buyers.

Announcements from retailers Express (EXPR 20.12, -2.75), American Eagle (AEO 13.02, -0.64), and Collective Brands (PSS 15.31, -3.06) featured either disappointing quarterly results or downside guidance. Further, Dow component Cisco (CSCO 16.19, -0.08) tempered its guidance in a quarterly filing, thus pushing the stock to its lowest level since the stock market was struck with fear of a global economic. Despite such headwinds in the early going, the major equity averages were able to attract enough buying support to close higher.

In the major indices, the Dow Jones Industrial Average (DJIA) closed with a gain of 38.45 or 0.31% at 12,394.66 while NASDAQ index finished up by 15.22 points or 0.55% to 2,761.38. The S&P 500 (SPX) closed higher by 4.19 points or 0.32% to 1,320.47.

The FIIs on Wednesday stood as net buyer in equity and net seller in debt. Gross equity purchased stood at Rs. 2538.30 Crore and gross debt purchased stood at Rs. 663.30 Crore, while the gross equity sold stood at Rs. 2503.10 Crore and gross debt sold stood at Rs. 2836.50 Crore. Therefore, the net investment of equity and debt reported were Rs. 35.20 Crore and Rs. (2173.20) Crore.

Top traded Volumes on NSE Nifty - DLF Ltd. 11023956, Hindalco Industries Ltd. 7130170.00, ITC Ltd. 6440432, Infrastructure Development Finance Company Ltd. 5056936, Jaiprakash Associates Ltd. 5047012.

On BSE, total number of shares traded was 24.79 Crore and total turnover stood at Rs. 2849.24 Crore. On NSE, total number of shares traded was 48.95 Crore and total turnover stood at Rs. 10484.22 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 760125 with a total turnover of Rs. 19427.77 Crore. Along with this total number of contracts traded in stock futures were 1119270 with a total turnover of Rs. 26736.97 Crore. Total numbers of contracts for index options were 3963603 with a total turnover of Rs. 107706.39 Crore. and total numbers of contracts for stock options were 136408 with a total turnover of Rs. 3530.39 Crore.

Read more about: bse, nse, nifty, sensex
Story first published: Thursday, May 26, 2011, 8:32 [IST]
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