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Pre-market: Sensex may open lower, remain volatile

Tuesday, October 20, 2009

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Sensex may open lower, remain volatile

Sensex may open weak and remain range bound on the back of poor performance staged by the major global indices

The major US indices that started the week on the positive note, closed on Tuesday with losses of close to 0.6% each, even the European markets (FTSE 100) closed lower by 0.72% or 38 points at 5243. While in todays trade, the major Asian indices were trading marginally lower in the range of 0.27%-0.80% each. Even the Singapore Nifty was trading 2 points below its previous days settlement price and was trading in a range bound territory. Such performance by the global indices may result in Sensex opening lower to its previous close and with no major trigger in the hind sight, it may remain volatile and trade in a range bound territory through the day. Among the local indices, the Nifty could test the 5150- 5200 range on the upside while on the down side it could find support at 4920 and 4850. The Sensex is likely to get support at 16606 and may face resistance at 17770.

On Tuesday, the major US indices staged a weak performance owing to the strengthening of dollar and few disappointments on the Q2 corporate earnings front. However, the Dow managed to sustain 10000 levels and closed 50 points or 0.50% lower at 10041, while S&P 500 and Nasdaq lost 0.6% each.

Among the Indian ADRs trading on the US bourses, only Infosys, Satyam and MTNL ended the day in positive zone, wherein MTNL surged the most and rose by 3.42%. While amongst the losers, HDFC Bank fell the most with loses of over 2.60%, while other ADRs like Rediff, Tata Motors, Wipro, VSNL and ICICI Bank fell marginally in the range of 0.33-1.43% each.

In the commodity space, Crude oil prices fell marginally, with the Nymex light crude oil for November series declined by $0.52 to close at $79.09 a barrel. In the metals space, the Comex Gold for December series rose marginally by $0.50 to settle at $1058.60 a troy ounce, while Comex Silver for December series fell by $0.07 to settle at $17.56 a troy ounce.

Daily trend of FII/MF investment in equities
On October 20, 2009, FIIs remained the net buyers of the Indian Stocks in the tune of Rs1196.70 crore (with the gross purchase of Rs3861.60 crore and gross sales of Rs2664.90 crore). While the Domestic mutual funds mutual funds, on October 17, 2009, were the net buyer of the stocks in the tune of Rs20.50crore (with gross purchase of Rs28.90 crore and gross sales of Rs8.40 crore).

Headlines for the day

Hiring activity up 4.1% in September
Tech Mahindra Q2 net profit declined by 44%
Rallies to invest Rs250 crore in new facility
NMDC drops new diamond exploration projects
Tata Motors Completes Hispano buyout
Events for the day

Major results: Hero Honda Motors, Chambal Fertilizers, Pidilite Industries, Jaiprakash associate and Yes Bank

INDICES SNAPSHOT

ASIAN INDICES at 09:20 IST on 21/10/2009

Index Level Change(pts) Change(%)
Nikkei 10305.26 -31.58 -0.31
Hang Seng 22210.79 -174.17 -0.78
Kospi Index 1650.22 -8.93 -0.54
Straits Times 2697.81 -13.28 -0.49
Jakarta Composite 2476.69 -25.53 -1.02

EUROPEAN INDICES at close on 20/10/2009

FTSE 100 5254.43 -27.11 -0.51
CAC 40 Index 3871.45 0 0
Dax Index 5811.77 -40.79 -0.70

US INDICES at close on 20/10/2009

Dow Jones 10041.48 -50.71 -0.50
Nasdaq 2163.47 -12.85 -0.59

PRE-MARKET COMMENTARY

21/10/2009| Market round-up, 9:45 IST

STOCK TO WATCH TODAY
TCSCONS
TECHMAH
TATAMOTORS
NATMINE
SESAGOA

INDIAN ADRs

Company Last Close %Change
Infosys 48.06 0.27
Satyam 6.44 0.63
Wipro 19.15 -0.42
Dr.Reddy's 20.06 -1.43
Tata Motors 12.26 -0.33
ICICI Bank 40.72 -1.26
HDFC Bank 121.96 -2.6
MTNL 3.63 3.42
VSNL (TCL)* 20.62 -0.96
Rediff 3.19 -0.62
Patni Comp 18.58 -0.32

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posted by Anonymous @ 11:42 PM

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