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9am with Emkay |
n Dealer Comments
The markets started the day’s session on a big positive note with 170 odd point’s upward gap tracking firm cues from the global markets particularly the Asian markets. Post firm opening markets showed good strength in the first hour of trade but around 11.00 just gave up all the initial gains behaving jittery ahead of the IIP data announcement. Post poor IIP data announcement at just 2.7% for the month of November 2010, markets just gave off big time and was further aided by the news of possible raids by CBI on top 6 psu banks including SBI related to money allocation to telecom companies for 2G spectrum. Banking space saw some bank basket selling on the back of the news but post clarification by Mr OP Bhatt of SBI that no such raids was going on, there was huge short covering across the board leading to a very sharp recovery in the markets. Even very firm trading by the European markets further strengthened the day’s rally. After a spate of recent correction in the banking space, today banking stocks saw renewed buying interest with most of the banking stocks edging higher between 3-6%. Even other rate sensitive stocks like auto, consumer durables and realty saw good buying. Despite today’s good bounce back markets are still lurking in danger as inflation showing no signs of abating, key interest rate hike on the card to tame the rising inflation, policy stalemate at the centre and few concerns on macro economic front ahead of the release of the December’s inflation report continues to weigh on the sentiments as of now. Finally the markets snapped its 6 day losing streak and closed the day on a positive note towards the end at day’s highs with Sensex gaining 338 points or 1.76% higher to settle at 19534 levels while Nifty gained109 points or 1.90% higher to settle at 5863 levels. The overall traded volumes were quite higher compared to the earlier day by almost 16% odd and were at Rs 2083 bn. While delivery based volumes were quite lower compared to the earlier day at 34% of the total traded turnover. Among the Fund activities FII’s were net sellers to the tune of Rs 11.25 bn while Domestic Funds were net buyers to the tune of Rs 3.91 bn respectively on 11th January 2011. While on 12th January 2011 FII’s were net sellers to the tune of Rs 3.72 bn in the cash segment while in the F&O segment FII’s were net buyers to the tune of Rs 8.35 bn while Domestic Funds were net buyers to the tune of Rs 3.59 bn.
n Technical Comments
Bullish Morning Star
Nifty broke a six long days of losing streak by a sharp pullback in the later half of today’s trade, to form a bullish Morning Star candlestick pattern (a bottom reversal pattern); meaning that bulls have taken over. Furthermore, since the market looked quite oversold, a bounce was an utmost possibility. Moreover, due the formation of a Morning Star pattern at the lower Bollinger band, the chances of Nifty going back for the retest of its 20-DSMA resistance (packed at 5988), have increased. Hence, we maintain our short term bullish view for the target of 6000. Since, Nifty has cleared the barrier of 20-HSMA, the next key pivot going forward is at 5950 (50-HSMA).
Bank Nifty:
Bank Nifty too have formed a Bullish Morning Star candlestick pattern at the support of 200-DSMA. Hence, we still maintain our bullish view for the target of 11,400-level.
n Results Today
CMC | Infosys Tech. | S A I L | Sintex Inds. |
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