ShareKhan Newsletter Blog

As the global cues remain marginally positive, the domestic indices may open higher, however volatility may continue.

Headlines for the day

NTPC to buy 2 coal mines in Indonesia - DNA Money

Mahindra, BAE in land systems JV - DNA Money

RIL topples ONGC as largest gas producer Business Standard

Consolidated Construction Consortium bags order worth Rs405 crore - Business Line

GDP at 7.9% beats market expectation - Business Standard

Pre-market report

Global signals

• The concern over the Dubai default still seems to be hovering over the European stocks that fell by over 1% each on Monday.

• The picture in the US was full of contrast to that of the Europe, the major US indices remained volatile for the entire session, however ended positive with 0.3% gains for Dow, as the concern over the size of the Dubai default eases.

• Leaving Nikkei 225 and Shanghai Composite that fell by 0.95% and 0.13% respectively, all the remaining major Asian indices were trading in the green. At the time of writing this report, SGX Nifty was trading 21 points higher.

Indian markets

• After a month of gains, the domestic indices might surge further today on the back of marginally positive global cues. The Sensex to follow the Asian cues and may get choppy as the day progresses.

• 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 5000 and 4950. The Sensex is likely to get support at 16600 and may face resistance at 17100.

Indian ADR's

• Among the Indian ADRs trading on the US bourses, only Wipro and VSNL closed in the red with losses of 1.38% and 1.08% respectively. While rest all the ADRs ended in the positive with the gains of 0.29%-6.58% each, MTNL rose the most.

Commodity cues

• In the commodity space, the Crude oil prices slides further, with the Nymex light crude oil for January 2010 series falling by $0.25 to settle at $75.80 a barrel.

• In the metals space, the Comex Gold for February 2010 series rose by $7.50 to settle at $1183.00 a troy ounce, while Comex Silver for December series surging by $0.21 to settle at $18.54 to a troy ounce.

Daily trend of FII/MF investment in equities

• On November 30, 2009, FIIs were the net sellers of the Indian Stocks in the tune of Rs730.30 crore (with the gross purchase of Rs1420.80 crore and gross sales of Rs2151.10 crore).

• Even the Domestic mutual funds mutual funds, on November 27, 2009, were the net sellers of the stocks in the tune of Rs361.50 crore (with gross purchase of Rs938.30 crore and gross sales of Rs1299.80 crore).