9am with Emkay; 9 December, 2010

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

n        Dealer Comments

The markets started the day’s session on a negative note with almost 80 odd points downward gap tracking weak to subdued cues from the global markets particularly the weaker Asian counterparts. Post weak opening markets continued to witness selling pressure and continued its south bound journey till the closing bells. Post noon markets saw a big slump mainly led by huge fall in the Asian counterparts on the back of concerns over China tightening interest rates again this weekend to curb excessive heating of their economy resurfaced when it will release its monthly November 2010 statistics including inflation. For the third consecutive day banking stocks saw good hammering and profit booking post RBI asking the banks to trim their interest margins with an all round selling across the space. Even profit booking in metal, realty, IT, power and fmcg stocks further aided the days fall. Broader markets continue to see huge selling pressure after a decent out performance recently. Now the next positive trigger for the markets is the announcement of the IIP nos and Advance tax figures for Q3 by corporates. Finally the markets once again closed the day on a negative note towards the end at almost day’s lows with Sensex losing 238 points or 1.19% lower to settle at 19696 levels while Nifty lost 73 points or 1.22% lower to settle at 5903 levels. The overall traded volumes were slightly higher compared to the earlier day by almost 10% and were at Rs 1246 bn. While delivery based volumes were also higher compared to the earlier day at 45.7% of the total traded turnover. Among the Fund activities FII’s were net sellers to the tune of Rs 4.17 bn on 7th December 2010. While on 8th December 2010 FII’s were net sellers to the tune of Rs 14.85 bn in the cash segment while in the F&O segment FII’s were net sellers to the tune of Rs 10.32 bn while Domestic Funds were net buyers to the tune of Rs 4.09 bn.

n        Technical Comments

Demand creeps in at 50% retracement

Nifty has fallen for the third consecutive day and shed more than 100 points in three days; it slipped below 5900 – psychologically important level - during the day but managed to claw back above that level at close. If we do a Fibonacci check of the rally which started from 5690.35 and terminated at 6069.45, we are at 50% retracement packed at 5880. Final retracement support is at 5835, which is the golden retracement i.e. 61.8%. Unless that is broken, we would not say that the bulls are totally under threat. This is basically a profit taking bout which we are seeing and still hope that 6200 odd levels can still be seen in future. Moreover, the current fall is quite mature and hence a positive close will mark its termination and we will be heading for 6200.

BSE Metal:

BSE Metal index has formed an “Evening Star” candlestick pattern, due to which we may see some more fall upto 15950 level in the near future.