Pre Session Market
Today domestic markets are likely to open positive as the much awaited FOMC’s policy statement unfolded the surprise to participants across the globe that the Fed will continue the Fund rate at 0-0.25% for an extended period of time. Markets across Asia are trading at new highs after the FOMC’s policy statement. The U.S. markets witnessed broad based buying and benchmark indices closed firmly higher. Nikkei is trading higher by 0.69% on the back of favourable FOMC’s statement. The Bank of Japan (BOJ) will come up with its monetary policy during the day, which would further guide the market sentiments. There are also expectations that BOJ may increase credit program by 5 trillion yen ($55 billion) to fight the deflation as credit measures are on the verge to expire. Shanghai Composite and Hang Seng are trading higher by 0.38% and 0.83% respectively. The Chinese stocks are trading higher on the back of phenomenal surge in commodity stocks due to higher metal prices. The FOMC keeping the Fed Fund rate lower will increase the pace of world economic recovery, bolster demand for metal and therefore propel metal prices. The London Metal Exchange Index of six metals including copper and zinc rose 1.3% yesterday. Strait Times and Seoul Composite are trading also trading higher by 0.25% and 0.90%. In the domestic arena, the markets are likely to trade higher marching towards the northward as positive sentiments across the world are supported by favourable FOMC’s policy statement. Further the surprising advance tax numbers, which augurs fundamental strength of corporate, is likely to continue supporting the bullish trend across broader level. Metal and energy stocks might lead the gainers list today as prices of metal and other commodities have surged higher on expectations of global economic recovery due to continued liquidity in the U.S.
On Tuesday, the key benchmark indices closed the Bull Run session with strong gains tracking the firm advance tax numbers from the corporate as well as firm European market. The domestic market after a gap up opening tumbled below the dotted line following the Asian market which opened in a positive note reversed gains later in the day. However, the market made a smart bounce back soon to continue its northward journey till the final close of the session. The investors were motivated by strong set of advance tax figures from India Inc for Q4FY10 indicating healthy fourth quarter results made the market move in the northward direction .The BSE Sensex closed below the 17,400 mark and NSE Nifty ended below 5,200 level.
The BSE Sensex on a higher note with gains of 218.19 or (1.27%) at 17,383.18 while NSE Nifty also ended with gains of 69.20points or (1.35%) at 5,198.10. BSE Midcap and Small cap closed with gains of 71.63 and 106.96 points at 6,722.89 and 8,469.16 respectively. The BSE Sensex touched intraday high of 17,416.55 and intraday low of 17,150.06.
On Tuesday, the U.S market closed higher. The major indices opened the session moderately in the positive terrain as weakness exhibited by greenback against its major counterparts helped the early participants to push the stocks higher despite uncertainty ahead of the much awaited FOMC statement. Anticipation and speculation ahead of FOMC’’s verbiage on the economy and monetary policy due in the late afternoon also overshadowed the early dose of economic data released for the day. The February import prices which slipped 0.3 %( m-o-m) reported slightly steeper than the expected decline of 0.2%. Meanwhile, the February housing starts data declined 5.9% (m-o-m) at an annualized rate of 575,000 units against an expected reading of 570,000. February Building permits too reported better with a decline of 1.6% (m-o-m) at an annualized rate of 612,000 against the consensus call for 3.4% (m-o-m) decline at 601,000 annualized rates. As the day progressed, stocks gained further momentum in the wake of the latest FOMC policy statement where Fed has left its target federal funds rate unchanged at a range of 0.00% to 0.25% for an extended period to safeguard the economic recovery. The day’s session ended with all the 10 major stocks resting in green. Materials (+1.5%), Financials (+1.3%), Industrials (+1.2%), Utilities (+1.1%) and Energy (+0.9%) were the front-runners of the day. U.S light crude oil futures for April contract finished higher by 2.4% at $81.70 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) ended with gains of 43.83 points at 10,685.98 NASDAQ index surged 15.8 points to 2,378.01 and the S&P 500 (SPX) closed higher by 8.95 points at 1,159.46.
Indian ADRs ended higher yesterday. In the IT space, Wipro was up 0.47%, Patni Computers was up 0.39 while Infosys was up 1.03% and Satyam Computers was up 0%. In the banking space, HDFC Bank was up 0.56% while ICICI Bank was up 2.55%. In the telecom space, MTNL was up 1.56%.In other sectors, Rediff was up 2.09% while Tata Motors was up 1.87%.
The FIIs on Monday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 2,550.90 Crore and gross debt purchased stood at Rs 962.80 Crore, while the gross equity sold stood at Rs 2,162.00 Crore and gross debt sold stood at Rs 414.90 Crore. Therefore, the net investment of equity and debt reported were Rs 388.90 Crore and Rs 548.00 Crore respectively.
On BSE, total number of shares traded was 32.46 Crore and total turnover stood at Rs 3,752.03 Crore. On NSE, total number of shares traded were 55.76 Crore and total turnover was Rs 11,375.56 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 17865929, followed by Suzlon Energy with 13355819, Hindalco with 7945846, Jaiprakash Asso with 7887323 and Reliance with 7771535.
On NSE Future and Options, total number of contracts traded in index futures was 538401 with a total turnover of Rs 13,648.57 Crore. Along with this total number of contracts traded in stock futures were 470681 with a total turnover of Rs 16,603.96 crore. Total numbers of contracts for index options were 1821899 with a total turnover of Rs 46,796.05 Crore and total numbers of contracts for stock options were 80134 and notional turnover was Rs 2,894.25 Crore.
Today, Nifty would have a support at 5,235 and resistance at 5,286 and BSE Sensex has support at 17,466 and resistance at 17,552.
article source: stocktips
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