9am with Emkay; 14 December, 2010

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9am with Emkay

n        Dealer Comments

The markets did start the day’s session on a positive note with almost 95 odd point’s upward gap tracking subdued cues from the global markets particularly the mixed Asian counterparts. Post good opening markets immediately took a deep plunge and slipped in the negative zone. Thereafter markets bounced back in the green only to be short lived as news of fresh firing of shells for drill by South Korea jolted the markets around 11.00 am leading to all round selling. Markets were jittery ahead of the raft of news to hit the markets this week viz inflation for November, Federal Reserve’s policy meet on Tuesday, mid term policy review by RBI on Thursday and advance tax payment figures by corporates for Q3. Once again the broader markets outperformed the major indices showing that still bargain hunting is still on post good rundown in last so many trading sessions. The days rally was mainly led by good buying in realty, metal, capital goods and power stocks. Finally last hour saw extremely good buying and short covering in the markets leading to almost 350 points and 100 points jump form the days lows for Sensex and Nifty respectively. Finally the markets closed the day and the first day of the week on a positive note towards the end at almost day’s highs with Sensex gaining 183 points or 0.94% higher to settle at 19692 levels while Nifty gained 50 points or 0.86% higher to settle at 5908 levels. The overall traded volumes were marginally lower compared to the earlier day by almost 3% and were at Rs 1417 bn. While delivery based volumes were also quite lower compared to the earlier day at 38.4% of the total traded turnover. Among the Fund activities FII’s were net sellers to the tune of Rs 11.73 bn on 10th December 2010. While on 13th December 2010 FII’s were net sellers to the tune of Rs 2.87 bn in the cash segment while in the F&O segment FII’s were net buyers to the tune of Rs 4.10 bn while Domestic Funds were net buyers to the tune of Rs 3.34 bn.

n        Technical Comments

Bullish Hammer

Nifty closed the day on a healthy note. The pullback rally which started on Friday with the formation of a Piercing pattern, further gained momentum today due to which Nifty recovered nearly 100 points from the day’s low to form a bullish Hammer. A bullish Hammer, after a Piercing pattern is a double booster for the bulls and hence we feel that this bounce may continue in the coming session too. Moreover, the daily RSI has also given a positive crossover, again a sign of strength. Hence, taking the overall consensus, we still maintain our positive bias for the target of 6000 plus levels.

BSE Bankex

BSE Bankex is forming an inverse Head-and-shoulders pattern on intraday charts. Also, the hourly MACD has given a buy signal. Hence a bounce upto 13,600 level can be expected in the near future.