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NSE Intra-day chart (15 January 2010)
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Market Commentary 18 January 2010
Domestic markets likely to make weak start on feeble global cues

Key equity indices ended the side-ways session of Friday marginally in the red led by profit booking in oil & gas, capital goods and metal stocks. The markets started the day on a flat note underpinned by mixed cues from other Asian equities. They slipped in the negative terrain in late morning trades to touch the day's low but managed a smart rebound from those levels to enter the green. The bourses gyrated in a tight range in mid-afternoon trades. Key indices touched their fresh intraday lows in late trades as selling got intensified in index heavyweight, Reliance Industries. Benchmarks managed to recoup some of their losses in last half-an-hour of trade. Another index heavyweight -- ONGC -- also reversed most of its previous session's gains. Savvy investors took cautious approach before committing their investments ahead of earnings report from leading software exporter, TCS. Banking majors, HDFC Bank and Axis Bank, reported better-than-expected earnings for the December 2009 quarter. PSU stocks were in jubilant mood throughout the session led by the government's decision to disinvest 10% of its holding in Engineers India through a public offer. RCom, for the second day in running, witnessed good gains in trade. On the economy front, the major announcements like IIP data and monthly inflation numbers are already out and now the ball is in the RBI's court. The apex bank is likely to start tightening its ultra loose monetary policy in the near term. The broader indices signed off trade on a positive note. Finally, the 30-share BSE Sensex slipped 30.57 points or 0.17% to end at 17,554.30, while the 50-share S&P CNX Nifty declined 7.70 points or 0.15% to close at 5252.20.

 

The US markets plunged on Friday, it was the first three digit decline for the Dow in the 2010.It was the earnings report of JPMorgan Chase & Co that led the decline in the markets, its deep fourth-quarter loan losses raised concerns about earnings for the banking industry. The bank has announced heavy losses on mortgage and credit card loans. The financial stocks were the biggest loser of the day on the same time the strength in dollar against other major currencies led the decline in commodities and energy stocks too. The Dow Jones Industrial Average plunged by 100.90 points, or 0.94%, to 10,609.65.The broader Standard & Poor's 500 index fell 12.43 points, or 1.08%, to 1,136.03, and the Nasdaq composite index lost 28.75 points, or 1.24%, to 2,287.99.

 

The crude prices once again declined on Friday as the dollar strengthened and the poor earnings report of banking major JP Morgan Chase once again raised concern about the economic recovery. Warmer weather too was hurting the sentiments of crude. Temperatures are now forecast to exceed the seasonal norm, further suppressing consumption. Benchmark crude for February delivery slid $1.39 cents to settle at $78 a barrel on the New York Mercantile Exchange. The price was down $4.75 for the week. In London, Brent crude for February delivery fell 71 cents to $77.11 a barrel on the ICE Futures exchange.

 

The Indian rupee declined on Friday tracking the strength in dollar overseas against other currencies. The choppiness in the local stocks too led to a decline in the rupee as they were unable to give any firm direction. The domestic currency traded soft since beginning as the local share markets were not looking in good shape and after a volatile session closed marginally lower. Most other Asian units too were slightly weaker compared to the US dollar on Friday. Finally the rupee closed at 45.78, 16 paise weaker compared to its Thursday's close of 45.62.

 

The FII on Friday were the net sellers in the equity segment with gross buying of Rs 3602.40 crore against gross sell of Rs 3738.80 crore, while in the debt segment they were the net buyers with a gross purchase of Rs 679.50 crore against gross sales of Rs 132.30 crore.

 

The US markets declined on Friday with Dow suffering the most, the disappointing earnings report of JP Morgan led the decline in financial sectors and the investors grew cautious that the financial institutions are still not fully stablised. The Asian markets have made a weak start of the new week and most of the indices are trading lower by more than 1%.The domestic markets, despite a choppy session managed a flat close in previous session but today the trade is likely to remain sticky on negative global cues. There were lots of results announcement during the weekend so scrip specific movement based on the performance of the companies can be seen in the markets.

 

Support and Resistance: S&P CNX Nifty and BSE Sensex

        Index

    Previous close

         Support

     Resistance

S&P CNX Nifty

5252.20

5236.48

5273.88

BSE Sensex

17554.30

17508.99

17619.73

                                                

                                                          Nifty Top volumes

Stock

Volume

Previous close (Rs)

Support  (Rs)

Resistance (Rs)

Suzlon Energy

23408868

89.10

87.63

91.43

      Unitech

18120439

88.65

87.92

89.67

RCom

15459863

191.60

185.27

195.67

JP Associates

8231829

163.90

162.07

165.87

Powergrid

6341488

118.65

116.85

120.95

  • Power Grid Corp of India has received its board approval for participating in a joint venture with Nepal Electricity Authority and IL&FS.
  • ICICI Bank has invested Rs 250 crore in Lavasa Corporation, a subsidiary of the HCC in the form of convertible debentures.
  • HDFC Bank has reported increase of 31.65% in its Q3 net profit of Rs 818.50 crore as against Rs 621.74 crore in corresponding previous quarter.
  • Tata Motors has reported that global sales of its vehicles stood at 74707 units in December 2009, up 84%, as compared to the year-ago period.
  • TCS has posted a net profit rise of 28.25% to Rs 1554.2 crore for the quarter ended December 31,2009 against Rs 1211.89 crore in the corresponding previous quarter.
News Analysis
Suzlon Wind Energy A/ S (SWEAS), the international business arm of Indian wind energy major Suzlon Energy broke new ground with its first order in Sweden from Triventus AB., the highly respected wind power developer and consultant in Sweden. The order compri...

Bharat Forge, the world's second largest forgings maker, announced that it has received the approval from its board to raise $150 million through equity-cum-debt issue for expansion into non-automotive areas like power and oil and gas. Earlier, the compan...