Pre Session Analysis: Sensex and Nifty to open positive

Posted By: Staff
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Pre Session Analysis: Sensex and Nifty to open positive
The key equity averages are likely to open positive as most of the Asian stocks are trading higher as the won and euro gained after leaders of the Group of Eight announced that the global economy is gaining strength and South Korea"s current-account surplus widened.

The MSCI Asia Pacific Index rose 0.6% to 134.15 with about four stocks advancing for three that fell. On the other hand, Japan"s Nikkei 225 is trading lower by 0.24% at 9,538.63 as the yen climbed after a report showed that the U.S. economy slowed down, reducing the earnings outlook for Japanese exporters.

Shanghai Composite is down by 0.45% to 2,724.12 and Hang Seng Index gained 0.3% to 22,968.6. Separately, Seoul Composite and Taiwan Weighted are trading higher by 0.61% and 0.49%, respectively. In the domestic arena, the markets are likely to follow the rout of global counterpart and trade range-bound with upside movement. Oil&Gas, Auto and Metal pivotals will be in focus today.

Today, Nifty would have a support at 5,384 and resistance at 5,449 and BSE Sensex has support at 17,953 and resistance at 18,170.

Precious Session

On Thursday, the domestic bourses ended the session on a cheerful note as the benchmark indices recovered from the previous session"s slump amidst buying in the Oil&Gas, Metal and Auto space. During the morning trade, most of the Asian stocks were 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 Japanese surged as the commodities prices increased on weakening Yen. After opening in the positive terrain, the benchmark indices gained further momentum and journeyed northwards. As the day progressed, the benchmarks managed to hold on the gains and a late hour rally pushed the Nifty to the highest point of the day above the 5,400 mark.

The strength in the market came in after a strong rally in the Steel major Tata Steel after it posted strong Q4 consolidated numbers. Sensex heavyweight Reliance Industries (+2.92%) also remained among the major contributors to the market rally after the government of India has decided to supply gas at regulated rates only to a few top-priority consumers, a move which has effectively granted Reliance Industries, substantial pricing freedom and boosted the government"s share of revenue from the field when output rises. The positive opening for the European markets had further boosted the sentiment.

The BSE Sensex closed at 18,044.64 up by 197.40 points or by 1.11% and the NSE Nifty closed at 5412.35, higher by 63.40 points or by 1.19%. The BSE Midcap was at 6,632.38, higher by 9.29 points or 0.14% and the BSE SmallCap closed at 8,038.18, increasing by 36.46 points or by 0.46%. The BSE Sensex touched intraday high of 18,072.61 and intraday low of 17,862.88.

On Thursday, the U.S. markets closed higher after a tepid tone initially that came due to mixed action in the abroad and the news that the second estimate of first quarter GDP showed growth of 1.8%, which was less than the expected 2%. Initial jobless claims for the week ended May 21 totaled 424,000, above the expected 400,000 initial claims.

Further, the dollar pulled back significantly initially, but that didn't affect the trade in the wake of the data. Besides, Microsoft (MSFT 24.67, +0.48) and NetApp (NTAP 55.31, +3.58) led the tech-rich Nasdaq. Shares of MSFT attracted some interest following favorable comments about the stock from hedge fund manager David Einhorn while NTAP was aided by a satisfactory quarterly report. The S&P 500 managed to make a modest advance with help from consumer discretionary stocks (+0.8%) after Tiffany & Co. (TIF 76.04, +6.00) and Guess? (GES 44.57, +4.47) reported impressive quarterly results.

In the major indices, the Dow Jones Industrial Average (DJIA) closed with a gain of 8.1 or 0.07% at 12,402.76 while NASDAQ index finished up by 21.54 points or 0.78% to 2,782.92. The S&P 500 (SPX) closed higher by 5.22 points or 0.4% to 1,325.69.

The FIIs on Thursday stood as net seller in equity and debt. Gross equity purchased stood at Rs. 2659.00 Crore and gross debt purchased stood at Rs. 1152.20 Crore, while the gross equity sold stood at Rs. 3077.50 Crore and gross debt sold stood at Rs. 1786.40 Crore. Therefore, the net investment of equity and debt reported were Rs. (418.50) Crore and Rs. (634.20) Crore.

Top traded Volumes on NSE Nifty - Jaiprakash Associates Ltd. 11458891, Infrastructure Development Finance Company Ltd. 11057445, Sterlite Industries (India) Ltd. 9906838, ITC Ltd. 9888954, DLF Ltd. 9657904.

On BSE, total number of shares traded was 21.75 Crore and total turnover stood at Rs. 2582.82 Crore.On NSE, total number of shares traded was 64.29 Crore and total turnover stood at Rs. 14111.34 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: Friday, May 27, 2011, 8:32 [IST]
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