9am with Emkay; 25 November, 2010

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9am with Emkay

n        Dealer Comments

The markets started the day’s session on marginal positive note with 40 odd point’s upward gap despite weak cues from the overnight US and European markets tracking firm Asian counterparts. Post positive opening markets immediately slipped in the negative zone but soon recovered the losses and traded in the green for most part of the day. Thereafter markets traded in a very narrow range with alternate bouts of movement till almost post noon trades. Post news of CBI conducting raids in a prominent housing finance firm LIC Housing Finance with regards to multi crore housing loan sanctioning scam panic selling gripped the markets in the last leg of the trade. As a result most of the banking and realty stocks took huge beating and selling pressure taking both the indices in the red at the closing bells. The markets which were already dwindling under the global eco and political pressure and absence of any positive trigger in the offing suffered fresh jolts post this news. Even tomorrow banking and realty stocks may continue to remain under deep pressure and under perform till matter gets some clarity as regards the amount and number of officials involved in the scam. Besides even selling in capital goods, metal, and power stocks aided the days fall. Finally the markets closed the day on a negative note towards the end at day’s lows with Sensex losing 232 points or 1.18% lower to settle at 19460 levels while Nifty lost 69 points or 1.16% lower to settle at 5865 levels. The overall traded volumes were lower compared to the earlier day by almost 10% and were at Rs 2354 bn. While delivery based volumes were also lower compared to the earlier day at 39.2% of the total traded turnover. Among the Fund activities FII’s were net sellers to the tune of Rs 13.96 bn while Domestic Funds were net buyers to the tune of Rs 3.44 bn respectively on 23rd November 2010. While on 24th November 2010 FII’s were net sellers to the tune of Rs 4.73 bn in the cash segment while in the F&O segment FII’s were net sellers to the tune of Rs 1.96 bn while Domestic Funds were net sellers to the tune of Rs 0.95 bn.

n        Technical Comments

Late sell off

Equity benchmarks witnessed a sharp fall on Wednesday in the last half hour of trade with news that the Central Bureau of Investigation (CBI) has conducted raids in the premises of LIC housing finance in Mumbai, Delhi, Kolkata and Chennai. Sensex shed 231 points to close at 19459. Nifty plunged 69 points to settle at 5,865. On technical front, the things have not much altered as there is only a minor whipsawing of the bullish trendline. Other than that, the 50% retracement mark of the previous rise is still not disturbed. So we continue to maintain our bullish stance in the market.

BSE Bankex:

BSE Bankex is looking weak and it can slide further upto 13150 level, which is the lower boundary of the bullish channel. Apart from this MACD cycle is also in the sell mode, which is also voting the favor of the bears.