The Professional Ticker Reader TM

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Oct 10, 2004

Markets rally higher. Sensex gains 101 points.

Higher volumes, positive breadth as oil fears fail to shake bulls.

Weekly statistics

Indices	Open	High	Low	Close	Change
BSE - 30	5706	5803	5699	5776	101.31
BSE - 200	747	766	747	761	18.04
NSE - 50	1776	1825	1775	1820	45.05
Dow Jones	10055 138	Nasdaq	1920 22	FTSE	4699  39
Advances	7561	Declines	7246	Put / Call trades - 42243 : 126030
FII Investments	Rs  1114 Crs Oct 1 - 7		Domestic Funds	Rs  211 Crs Oct 1 - 7

The value of shares advancing was Rs. 20,893 crores ( previous week Rs. 18,986 crores ) and the value of shares declining was Rs. 10,698 crores ( previous week Rs. 11,334 crores ). This indicates a marginal buying bias. The total traded volume on the BSE was Rs. 10,219 Crores ( previous week Rs. 9,641 Crores ). The total traded volume on the NSE was Rs. 21,630 Crores ( previous week Rs. 20,826 Crores ).

The markets saw an optimistic undertone continuing in the week gone by, inspite of high oil prices as liquidity fuelled the rally. Robust FII inflows and the impeding earnings season saw players throwing caution to the winds and participating in the buying process. The traded volumes were improved, the market breadth was marginally positive and the undertone was optimistic. The boost came from power, metals, technology and pharmaceuticals. The Sensex was boosted by Dr Reddy, HPCL, Hindalco, ITC, L&T, MTNL, Reliance Inds and Tata Power. The Sensex was dragged down by ACC, Bajaj Auto, Bharati Tele, Grasim, Guj Amb Cem, HDFC Bank, HDFC, Hero Honda, Hind Lever, ICICI Bank, Infosys, ONGC, Ranbaxy, Reliance Inds, Satyam Computers, SBI, Tisco, Wipro and Zee Telefilms. The rupee ended the week at 45.75 levels ( 00.10 ) against the US $. Overall, the week was in line with our expectations. Click here to view the previous week's files.

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• The markets are likely to be cautious due to the crude oil factor which is a worry in the near term. Inspite of assurances from OPEC, the prices are staying above the $ 52 / barrel mark and pre-winter demand is strong. That will exert inflationary pressures on the global economies.

• The FII inflows are positive and they have pumped in Rs 871 Crs in the first four days of the week.

• The undertone has been optimistic, however, the market breadth shows a selling bias at higher levels. Till that supply is not absorbed completely, we anticipate pressure on the upsides.

• Of the entire traded volumes during the week, 44 % of the volumes were transacted on negative market breadth days. That shows a marginal selling bias in the markets.

• The F&O indicators are pointing towards a build-up of short positions at higher levels and the bears stacking up short sales on the Nifty at higher levels. The previous weeks rally was accompanied by lower volumes in the F&O segment, which is a sign of caution.

• The overseas markets have been under pressure and are likely to exert bearish pressure on the domestic sentiments.

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Technicals

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Have a profitable day.

 

Vijay L Bhambwani

Ceo :- Bsplindia.com

The author is a Mumbai  based investment consultant and invites feedback at Vijay@BSPLindia.com and  ( 022 ) 23438482 / 23400345.

SEBI disclosure -  The author has no positions in  the stocks mentioned above.

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