9am with Emkay; 6 December, 2010

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9am with Emkay

Contents

n        Research Views

Auto – November 2010 volume update

Ashok Leyland Ltd (ALL)

n    Total sales increased by 9.6% YoY to 5,137 units

n    Total MHCV sales increased by 10.4% YoY to 5,092 units

n    Total exports sales increased by 178.8% YoY to 1,252 units.

n        Dealer Comments

The markets started the day’s session on marginal positive note with 30 odd point’s upward gap tracking weak to subdued cues from the global markets particularly the mixed Asian counterparts. After a sluggish start markets didn’t show any momentum or interest and immediately slipped in the red and thereafter continued to languish almost throughout the day till closing bells. The indices moved in a very narrow range on either side of the dotted line for the entire day as the bulls decided to take a day off. The markets were missing with any major flows either buy or sell from the institutional fraternity. Post SEBI’s whip on 4 companies indulging in fraudulent and unfair trade practices the broader markets saw huge selling pressure with investors booking profits across the board leading to a good fall in the mid and small cap indices. Despite banking stocks closing in the red good buying was heard on the street in anticipation of a possible CRR cut to be announced by RBI next week. Finally the markets closed the day on a marginal negative note towards the end with Sensex losing 26 points or 0.13% lower to settle at 19993 levels while Nifty lost 19 points or 0.31% lower to settle at 5993 levels. On a weekly basis both Sensex and Nifty gained 4.2% each while Midcap index gained 3.4% and Smallcap index gained 3.6% each respectively. On a weekly basis among the sectoral indices Realty index was up 7.7%, Bankex index was up 6.1%, PSU index and Metal index gained 5.7% each respectively. The overall traded volumes were marginally lower compared to the earlier day by almost 5% and were at Rs 1049 bn. While delivery based volumes were also marginally lower compared to the earlier day at 40.2% of the total traded turnover. Among the Fund activities FII’s were net buyers to the tune of Rs 4.68 bn on 2nd December 2010. While on 3rd December 2010 FII’s were net buyers to the tune of Rs 6.03 bn in the cash segment while in the F&O segment FII’s were net buyers to the tune of Rs 5.68 bn while Domestic Funds were net sellers to the tune of Rs 6.89 bn.

n        Technical Comments

Weekly positive close

The index traded in a tight range for the second day, as the uncertainty about the market direction prevailed among traders. Nifty has bridged the gap left between 5970-5960, and closed the day below the crucial 6000 mark. Although on a weekly basis it has closed in the green and made a higher high; higher low. Also the index is trading above the duo of 20- and 50- hourly moving averages and hence the probability of Nifty going higher towards 6100 is fairly tall.

BSE Bankex

BSE Bankex has given a weekly positive close after finding support at the lower boundary of the rising channel. Moreover, the support level of the lower channel is coinciding with the value of 20-DSMA and hence the probability of this index going higher towards the upper boundary of the channel packed at 15,200 is fairly tall.