Oct 10, 2008

Markets expected to open in the green following positive global cues, but could run into resistance at higher levels later

01 Oct 2008 | 10:09
Markets expected to open in the green following positive global cues, but could run into resistance at higher levels later

The Indian Markets witnessed a sharp recovery from the lows on Tuesday to close on a strong note. The BSE Sensex recovered from an intra-day low of 12153.6, to close at 12860.4, up by 2.1% over Monday’s close. After a weak opening, the Nifty bounced back sharply from the lows. During the day, it made an intra-day high of 3966.9, but witnessed minor correction towards the end before closing at 3921.2, up by 1.9% over Monday’s close. The NSE cash turnover stood at Rs. 14794 crores in comparison to Rs. 13120 crores on Monday. The market breadth was neutral on BSE with the advance-decline ratio of 1:1. Among the sectoral indices, Banks, Capital Goods & Realty were the major gainers, which increased by 4.9%, 3% & 3% respectively.
However, Metals & FMCG were the underperformers, which decreased by 1.7% & 0.9% respectively.

Wall Street had its best day in six years on Tuesday, a day after its worst sell-off as investors bet Washington would revive the bailout plan to stabilize the U.S. financial sector after its unexpected rejection on Monday. Dow Jones & Nasdaq increased by 4.7% & 5% respectively. The Indian ADRs closed on positive note with Infosys, Wipro & Satyam increasing by 13.5%, 9.5% & 9.8% respectively. ICICI & HDFC Bank increased by 7.7% & 11.6% respectively. Tata Communications increased by 19.2%. Among the Latin American markets, the Mexican markets increased by 3.9%, while Brazilian
Market closed up by 7.6%. Among the Metal prices, Aluminium & Copper
decreased by 0.6% & 2.3% respectively, Zinc & Nickel decreased by 1.6% & 3.9% respectively. The light crude oil for November increased by 4.4% to settle at $100.6 a barrel. Today, the Asian Markets are trading on a mix note with Nikkei trading up by 1.2%, while Kospi is trading down by 0.8%.
However, other Asian Markets like Hang Seng, Shanghai & Singapore Strait are shut today.

On Monday, the FIIs were net buyers of Rs. 387 crores in the cash markets.
As per the provisional figures, FIIs were net buyers of Rs. 14 crores in the cash market on Tuesday, while they were net buyers of Rs. 792 crores in the F&O markets.

Today, we expect the Markets to open up following positive global cues.
However, at higher levels it could witness selling pressure later during the day. Among the sectoral indices, IT, Banks & Capital Goods are looking good, while FMCG & Metals continue to look weak & could underperform.