9am with Emkay; 16 November, 2010

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9am with Emkay

n        Dealer Comments

The markets started the day’s session on a positive note by 40 odd points upward gap led by weak to subdued cues from the world markets particularly the Asian counterparts. Immediately after a positive start markets slipped in the negative zone and kept on see sawing in both zones till almost post noon trades. Markets were just swaying around the Fridays closing levels in the absence of any major trigger leading to buying mood and even muted flows from the funds keeping the indices in a narrow range for time being. But post lower inflation data and improved trade data lead to very robust and renewed buying interest in banking stocks particularly the second rung banking stocks thereby taking the indices to positive terrain at the closing bells. Besides buying in fmcg, technology and select auto and healthcare stocks also aided the day’s late rally. Finally once again markets closed the day on a positive note towards the end at almost day’s highs with Sensex gaining 153 points or 0.76% higher to settle at 20310 levels while Nifty gained 50 points or 0.82% higher to settle at 6122 levels. The overall traded volumes were quite lower compared to the earlier day by almost 25% and were at Rs 1620 bn. While delivery based volumes were also lower compared to the earlier day at 38.2% of the total traded turnover. Among the Fund activities FII’s were net sellers to the tune of Rs 6.74 bn on 12th November 2010. While on 15th November 2010, FII’s bought shares worth Rs. 3.13 bn in cash segment (provisional) while in the F&O segment they were net sellers to the tune of Rs 16.67 bn whereas Domestic Funds sold shares worth Rs. 0.03 bn (provisional).

n        Technical Comments

Within the falling channel

In today’s session, Nifty saw the anticipated bounce, from the support of 50-daily simple moving average. However, we still stick to our bearish stance and recommend going short in range of 6130-6150. Moreover, on hourly degree Nifty is still trading within a falling channel and has also approached the upper boundary of that channel. Also, Nifty is just below the resistance of its 20-daily simple moving average. Hence this is the best time to go short, for all those, whose have missed the previous bus.

BSE Bankex

Today’s move in BSE Bankex was just a relief rally, which has already retraced 50% of the previous fall and hence in the coming session its downtrend is expected to resume. The target for this index is still packed in range of 13600-13500.