9am with Emkay; 10 November, 2010

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9am with Emkay

n        Dealer Comments

After yesterday’s negative closing the markets started the day’s session on a very flattish note led by weak to subdued cues from the world markets. Post subdued start, market saw a very lacklustre to dull movement for most part of the day. Post dismal results by SBI, the stock took good beating in today’s trades as it fell almost 5% at the day’s end. Heard on the street, that market players were booking profit in the PSU banking stocks and buying private sector banks. Today’s limelight was hogged by extremely good buying interest in FMCG stocks particularly in stocks like colgate, hind lever, nestle, dabur, tata global and britannia. Post good recovery in the European markets after a dismal start markets here also saw good renewed buying interest and leading to positive closing at the end. Finally markets closed the day on positive note towards the end at almost day’s highs with Sensex gaining 80 points or 0.38% higher to settle at 20932 levels while Nifty gained 28 points or 0.45% higher to settle at 6302 levels. The overall traded volumes were quite higher compared to the earlier day by almost 20% and were at Rs 1382 bn. While delivery based volumes were lower compared to the earlier day at 40.8% of the total traded turnover. Among the Fund activities FII’s were net buyers to the tune of Rs 7.19 bn on 8th November 2010. While on 9th November 2010, FII’s bought shares worth Rs. 4.74 bn in cash segment (provisional) while in the F&O segment they were net sellers to the tune of Rs 4.80 bn whereas Domestic Funds sold shares worth Rs. 5.28 bn (provisional).

n        Technical Comments

Pattern breakout

After a fairly volatile session, Nifty ended the day on a positive note. Moreover, in today’s session Nifty bounced back from the support of 20-hourly simple moving average indicating that the undertone of the ongoing trend is still strong. Also, today’s daily positive close has signaled a resumption of the ongoing uptrend, after two days of sideways consolidation. These two days of sideways movement on hourly chart took the shape of a bullish Flag, from which Nifty has already given a breakout. The target of this continuation pattern is packed at 6500, which is also our medium term target. Furthermore, the entire move from 5937 is fairly channelised and unless Nifty is trading within that channel, one should aim for higher targets in Nifty.

BSE FMCG:

BSE FMCG index has gone past the previous swing high, forming a higher top higher bottom and hence now we are looking for targets in range of 3950-4000 in the near future.

n        Results Today

Advanta India	B P C L	Bharti Airtel	Britannia Inds.	DLF	Great Offshore
Guj Inds. Power	Kesoram Inds.	Nag. Constructn.	Noida Tollbridg.	Power Fin.Corpn.	Provogue (India)
S T C