ShareKhan Newsletter Blog

With weak Asian cues, the domestic indices may open marginally lower and remain volatile

Headlines for the day

JSW Energy to raise Rs2700 crore through IPO - Business Line

BPCL, Videocon consortium strike more oil in Brazil - Business Line

Hindalco to raise Rs 2,900 crore in QIP - Business Standard

United Spirits acquires Tern Distilleries - Business Standard

DishTV raises $100 million via GDRs - Business Standard

Reliance Industries Opts for consent route to settle RPL insider-trading issue - Business Line

Events for the day

Major corporate action:

• Listing of Den Networks Ltd (Bse code: 533137, NSE code: DEN) that came with an issue price of Rs195.

• Ex-date for the stock split of HBL Power from Rs10 to Re1 per share.

• Ex-date for the scheme of arrangement of Inwinex Pharma

• Ex-date for the interim Dividend of Associated Stone Industries and Dividend of Usher Agro.

Pre-market report

Global signals

• The European shares that opened strong, gained further to record over 2% gains as the data from the US boosted optimism on the economic recovery, while the banking and commodity stocks surged the most. FTSE 100 closed 1.98% higher at 5356.

• The stocks in the US closed strong and gained about 1.4% each. As the Better-than-expected existing home sales data for the month of October that was highest in two and half year fueled optimism on the economic recovery front, while the weaker dollar helped the commodity-linked stocks to surge, as the Dow gained 1.3%.

• The major Asian indices again are trading mixed and weaker, wherein the Shanghai Composite and Taiwan Weighted are in the green with marginal gains in the range of 0.22% each. While rest all the indices are trading in the negative zone with losses in the range of 0.03%-0.89% each. At the time of writing this report, SGX Nifty that opened marginally lower, slides marginally by 9 points.

Indian markets

• With mixed cues coming from the Asian front, the domestic markets are expected to open lower with marginal losses and remain volatile.

• Among the local indices, the Nifty could test the 5150-5180 range on the up side, while on the down side it could find support at 5050 and 5000. While the Sensex is likely to get support at 16900 and may face resistance at 17300.

Indian ADR's

• Among the Indian ADRs trading on the US bourses, all the ADRs closed in the green with gains in the range of 0.39%-3.21% each, except for the Tata Motors that fell marginally, losing 0.07%. While the Rediff remained unchanged.

Commodity cues

• In the commodity space, the Crude oil prices recorded gains, with the Nymex light crude oil for January 2010 series surging by $0.98 to settle at $78.45 a barrel.

• In the metals space, the yellow metal inches closer to $1200, with the Comex Gold for December series jumping by $18.00 to settle at $1164.80 a troy ounce, while Comex Silver for December series rose marginally, gaining $0.15 to settle at $18.59 to a troy ounce.

Daily trend of FII/MF investment in equities

• On November 20, 2009, FIIs were the net sellers of the Indian Stocks in the tune of Rs125.60 crore (with the gross purchase of Rs2291.70 crore and gross sales of Rs2417.30 crore).

• While the Domestic mutual funds mutual funds, on November 19, 2009, were the net seller of the stocks in the tune of Rs176.70 crore (with gross purchase of Rs509.50 crore and gross sales of Rs686.20 crore).