ShareKhan Newsletter Blog

On the back of strong performance by the global indices, domestic markets may open gap-up, continue to remain volatile

Headlines for the day

Gas price hike may force NTPC to raise tariff 5% - DNA Money

Telecom operators want lock-in policy relaxed -Business Line

Essar to take majority stake in Warid Telecom - Business Line

UltraTech board okays merger - Business Standard

Nalco shelves South Africa project; puts Iran Venture on hold - DNA Money

Torrent Pharma plans to invest Rs475 crore in Sikkim, Dahej - Business Standard

Events for the day

Major corporate action:

• Ex-date for the interim dividend of Filatex India and Kesoram Industries

Pre-market report

Global signals

• On Friday, the European stocks ended marginally higher with gain of close to 0.40%, each owing to the upbeat earnings news from few companies that outweighed weaker-than-expected US consumer sentiment data.

• The US markets recorded gains for the second week on the trot on the back of upbeat retail news that reinforced the hopes for strong sales in the key holiday season. Dow jumped 0.72% to 10270.

• In today's trade, all the major Asian markets were trading in the green, wherein Indices like the Shanghai Composite,surged the most with massive 2.20% gains, While the Nikkei 225 rose the least with gains of 0.13%. And at the time of writing this report, SGX Nifty that opened strong was trading higher by 40 points.

Indian markets

• Owing to such strong performance by the global indices, wherein the major US and European markets ended the last week on positive note and Asian today opened the week with strong gains, Domestic market is expected to open strong with decent gains. However the volatility may continue.

• Among the local indices, the Nifty could test the 5050-5100 range on the up side, while on the down side it could find support at 4920 and 4880. While the Sensex is likely to get support at 16600 and may face resistance at 17300.

Indian ADR's

• Among the Indian ADRs trading on the US bourses, only Satyam, VSNL and Rediff closed in the red with losses in the range of 0.68%-2% each, while rest all of the Indian ADR closed in the positive zone with the gains in the range of 0.86%-3.56% each.

Commodity cues

• In the commodity space, the Crude oil prices declined marginally, with the Nymex light crude oil for December series falling by $0.59 to settle at $76.35 a barrel.

• In the metals space, the Comex Gold for December series rose by $10.20 to settle at $1116.80 a troy ounce, while Comex Silver for December series surged by $0.13 to settle at $17.39 to a troy ounce.

Daily trend of FII/MF investment in equities

• On November 13, 2009, FIIs were the net buyers of the Indian Stocks in the tune of Rs151.30 crore (with the gross purchase of Rs2517.40 crore and gross sales of Rs2366.00 crore).

• While the Domestic mutual funds mutual funds, on November 12, 2009, were the net seller of the stocks in the tune of Rs255.40 crore (with gross purchase of Rs795.50 crore and gross sales of Rs1050.90 crore).