9am with Emkay

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9am with Emkay

n        Technical Comments

Demand comes back at the convergence area

After a positive start Nifty saw a steady up move throughout the trading session. Moreover, Nifty successfully took support at the convergence area of the rising trendline (drawn connecting the lows of 4923 and 5348) and an internal trendline (drawn connecting the highs of 5181 and 5310) and hence today’s low will act as an important pivotal point in the near future. Momentum indicators and moving averages too indicate that a short term bottom is in place and hence we are bullish in short-term for the target of 6200.

BSE IT:

BSE IT index has resumed its uptrend after completing a zig-zag correction and hence in the near future we are looking for targets in range of 6400-6500. 

Emkaynomics; 05 November 2010; Fortnightly round up of key banking and economic indicators

n    The growth in non food credit has moved up to 21.6% for the week ended Nov. 05, 2010 and deposit mobilisation dropped to 15%

n    The CD ratio has moved upwards to 73.4% for the week ended Nov. 05, 2010

n    Money supply growth has dropped to 16.5% and the money multiplier inched down to 4.89

n    Call money rates as on Nov. 22, 2010 have shed 33bps from last fortnight to 6.7%, with a brief move to 7.35%

n    The spread between call money and reverse repo rates has narrowed as on Nov. 22, 2010 and stands at 152 bps

n    Excess liquidity is absent in the system and stood at `-671.8 bn.  The repo balances stood at ~ `842.3 bn. and reverse repo at ~ `42.8 bn. for the week ended Nov. 05, 2010

n    The spread between the long and short end OIS has eased and stand at 10bps as opposed to 27 bps last fortnight