9am with Emkay; 30 November, 2010

Visit http://indiaer.blogspot.com/ for complete details �� ��

9am with Emkay

Contents

n        Dealer Comments

The markets started the day’s session on positive note with 80 odd point’s upward gap despite subdued cues from the global markets particularly the mixed Asian counterparts. After a firm opening, markets continued to scale newer highs with each passing hour and saw good bargain hunting at lower levels across the board. Today Auto stocks continued to see good buying interest in anticipation of robust November 2010 sales numbers. Even frontline and select banking stocks saw good buying interest after a recent steep slide triggered by the outbreak of the loan scam last week. Even the much battered mid and small cap stocks which were reeling under selling pressure since last week recouped some of the losses in the second half of the session. Post announcement of EGOM meeting on 3rd December for discussing urea decontrol matter led to a solid buying interest in fertilizer stocks like Chambal fert, GNFC, madras fert, nagarjuna fert, RCF and national fert. Finally the markets snapped its four day losing streak to close the day on a positive note towards the end at almost day’s highs with Sensex gaining 268 points or 1.40% higher to settle at 19405 levels while Nifty gained 78points or 1.36% higher to settle at 5830 levels. The overall traded volumes were extremely lower compared to the earlier day by almost 41% and were at Rs 1008 bn. While delivery based volumes were marginally higher compared to the earlier day at 41.8% of the total traded turnover. Among the Fund activities FII’s were net sellers to the tune of Rs 6.73 bn while Domestic Funds were net buyers to the tune of Rs 2.35 bn respectively on 26th November 2010. While on 29th November 2010 FII’s were net buyers to the tune of Rs 1.56 bn in the cash segment while in the F&O segment FII’s were net buyers to the tune of Rs 18.23 bn while Domestic Funds were net buyers to the tune of Rs 1.99 bn.

n        Technical Comments

Bounce on the cards

Finally, Nifty managed to retrace a fair amount of last week’s losses, with a gain of 80 odd points. Moreover, today’s price action managed to clear the resistance of 20-HEMA and with that the hourly MACD cycle also turned bullish. Hence in the coming session, the ongoing bullish strength may continue to rule the market. However, unless the hurdle of 20-DEMA and 50-DEMA gets cleared with good volumes and healthy market breadth, we will treat the ongoing breeze of up move, just as a bounce.

BSE Oil & Gas:

With RSI turning upward from the oversold region, we feel that a short term bounce for BSE Oil & Gas sector is on the cards. However, unless the resistance of 200-DEMA is surpassed significantly, we are looking for targets in range of 10350-10400.