Pre Market Watch - Nov 11 2008

Today Markets are likely to open negative as the US markets nose-dived into deep red yesterday and other Asian markets today opened with heavy blood bath. The financial crisis in US is still haunting as AIG has posted a whopping loss of $24.5 billion in the third quarter. In the domestic arena one could witness some profit booking today after a heavy gain yesterday. Investors would be little cautious about their holdings amidst global economic turmoil. Due to global crisis and falling demand of energy, Reliance industries is likely to delay commissioning schedules for it’s two oil and gas projects.

On Monday, domestic Markets opened with a positive gap on the back of China’s bailout plan of $586 billion fiscal package. The bailout plan boosted the moral of Chinese as well as other Asian markets. Sensex and Nifty gained phenomenal 5.74% and 5.89% respectively. Metal, Power, CG and Oil & Gas witnessed exemplary gains of 10.92%, 7.84%, 6.33% and 6.11% respectively. In the metal index NMDC, Jindal Steel and Sterlite were the forerunners as they surged heavily by 17.93%, 14.93 and 13.43% respectively. During the trading session we expect the market to be trading volatile.

The BSE Sensex closed higher by 571.87 points at 10,536.16 and NSE Nifty ended high by 175.25 points at 3,148.25. The BSE Mid Caps and Small Caps closed with marginal gains of 119.71 points at 3,475.09 and by 87.93 points at 3,988.03. The BSE Sensex touched intraday high of 10,570.58 and intraday low of 10,095.90.

On Monday, US markets nose dived into red on the back of negative concerns regarding financial and automaker companies overshadowed the Chinese financial bail out. The financial crisis in US is still haunting as AIG has posted a whopping loss of $24.5 billion in the third quarter. On the other hand auto major General Motor’s stock tumbled to its lowest in six decades after it was downgraded from hold to sell at Deutsche. Crude oil futures for the December delivery fell $1.91 to $60.50 a barrel on New York Mercantile Exchange. It also touched 20 months low of $59.10 a barrel. The Crude oil stocks were expected to have risen to 800000 million barrels last week.

The Dow Jones Industrial Average (DJIA) closed lower by 73.27 points at 8,870.54 NASDAQ index lost 30.66 points at 1,616.74 and the S&P 500 (SPX) also fell by 11.78 points to close at 919.21 points.

Indian ADRs ended negative. In technology sector, Infosys gained (2.29%) and Wipro gained by (4.46%) followed by Satyam that ended high by (0.52%) and Patni Computers closing high by (9.97%). In banking sector ICICI Bank was up by (4.62%), while HDFC Bank gained (0.45%). In telecommunication sector, Tata Communication declined by (4.69%), while MTNL was low by (0.62%). Sterlite Industries was up by (7.14%).

Today the major stock markets in Asia opened negative. The Shanghai Composite is trading flat at 1,881.12. Hang Seng is low by 25.28 points at 14,719.35. Further Japan''s Nikkei is low by 146.68 points at 8,934.75. Straits Times is also trading low by 21.75 points at 1,863.27 and South Korea’s Seoul Composite is high by 2.89 points at 1,155.35.

The FIIs on Monday stood as net buyers in equity and debt. Gross equity purchased stood at Rs1282.40 Crore and gross debt purchased stood at Rs387.80 Crore, while the gross equity sold stood at Rs1222.00 Crore and gross debt sold stood at Rs369.10 Crore. Therefore, the net investment of equity and debt reported were Rs60.30 Crore and Rs18.70 Crore respectively.

On Monday, the partially convertible rupee ended at 47.35/37 per dollar, 0.6% stronger than Friday''s close of 47.65/66. The rupee gained as local equities gained and created hope for fresh capital but the dollar demand from importers and oil corporates restricted further gains.

On BSE, total number of shares traded was 32.05 Crore and total turnover stood at Rs. 3,703.23 Crore. On NSE, total volume of shares traded was 62.86 Crore and total turnover was Rs 9,272.99 Crore.

Top traded volumes on NSE Nifty – Larsen with 3435688 shares followed by Nalco, Power grid, Reliance with 4959086 shares and BHEL with 2470578 shares respectively.

On NSE Future and Options, total numbers of contracts traded in index futures were 660034 with a total turnover of Rs 9,518.4 Crore. Along with this total number of contracts traded in stock futures were 736367 with a total turnover of Rs 8,080.71 Crore. Total numbers of contracts for index options were 784413 and total turnover was Rs 12,204.93 Crore and total numbers of contracts for stock options were 42062 and notional turnover was Rs 486.45 Crore.

Today, Nifty would have a support at 2,895 and resistance at 3,125 and BSE Sensex has support at 9,785 and resistance at 10,425.