9am with Emkay; 26 November, 2010

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9am with Emkay

Contents

n        Dealer Comments

The markets started the day’s session on positive note with 150 odd point’s upward gap tracking firm cues from the global markets particularly the Asian counterparts. After a firm opening, markets continued to trade in the green till almost post noon trades brushing off yesterday’s sell off led by unearthing of the bribery scam. Initially select banking stocks mostly the psu banks saw good selling pressure but soon regained the earlier loss and saw some bargain buying at lower levels. Immense volatility was witnessed in the second half of the trading session. Finally markets caved in to selling pressure towards the close of trade due to possible unwinding pressures on the last day of the expiry of the November derivatives series. The day’s limelight was hogged by heavy selling in the realty stocks with the index losing almost 5% odd on the back of anticipating next course of action by all banks who have lent the money would recall the loans given and this would pressurize the sector as a whole. As a result the entire sector saw huge pressure and seems to continue to remain under pressure going ahead. Even select banking stocks saw selling at the end and would also remain under pressure. Besides selling in metal, oil & gas, capital goods and power aided the day’s fall while buying in technology stocks curbed the downfall to some extent. Finally the markets closed the day on a negative note towards the end with Sensex losing 142 points or 0.97% lower to settle at 19318 levels while Nifty lost 66 points or 1.13% lower to settle at 5800 levels. The overall traded volumes were higher compared to the earlier day by almost 20% and were at Rs 2823 bn. While delivery based volumes were also quite higher compared to the earlier day at 50.9% of the total traded turnover. Among the Fund activities FII’s were net sellers to the tune of Rs 3.38 bn while Domestic Funds were net sellers to the tune of Rs 4.54 bn respectively on 24th November 2010. While on 25th November 2010 FII’s were net sellers to the tune of Rs 12.08 bn in the cash segment while in the F&O segment FII’s were net sellers to the tune of Rs 12.64 bn while Domestic Funds were net buyers to the tune of Rs 1.97 bn.

n        Technical Comments

Last chance for bulls to bellow

Nifty ended at the support of 5800 mark - a psychologically important level - on settlement day for November. Moreover, it closed at two months low and maintained downtrend for third consecutive day, dragged down by realty, metal, capital goods, oil & gas, power and FMCG shares. On technical front, Nifty is still standing at the bullish trendline support drawn connecting the lows of 2539 and 4786. So this is the last chance for the bulls to bellow, as the break of this trendline will put a question mark on the entire bull market which started since October, 2008.

BSE IT:

BSE IT index saw a decent bounce from the lower end of the channel and hence in the near future it can heighten upto 6200 level, which is the upper end of the channel.