9am with Emkay; 3 January, 2011

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9am with Emkay

n        Dealer Comments

The markets started the day’s session and the last trading day of 2010 on a positive note with almost 40 odd point’s upward gap tracking subdued cues from the global markets particularly the Asian markets. Post steady opening markets kept on trading in the green with buying seen across the board and maintained its north bound journey till the closing bell. Stocks from the ADAG group companies saw good action post news of re-branding all its businesses as Reliance group rather than maintaining individual identities. The days rally was mainly supported by buying in financial, realty, telecom, auto, select metal and power stocks. The benchmark indices steadfastly maintained its positive sentiment since last three days riding on the back of continued strength in the Asian markets and the aftermath of the smooth rollovers into the January expiry series. Finally the markets closed the day for third day in a row and ended the year 2010 on a positive note towards the end at almost day’s highs with Sensex gaining 120 points or 0.59% higher to settle at 20509 levels while Nifty gained 33 points or 0.54% higher to settle at 6135 levels. The overall market breadth indicating the strength of the market was positive as broader markets witnessed good buying action with Midcap index and Smallcap index gaining almost 1.2% each and was at almost 2 x. The overall traded volumes were quite extremely lower compared to the earlier day and were at Rs 786 bn. While delivery based volumes were also 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 23.47 bn on 30th December 2010. While on 31st December 2010 FII’s were net buyers to the tune of Rs 5.31 bn in the cash segment while in the F&O segment FII’s were net buyers to the tune of Rs 23.85 bn while Domestic Funds were also net sellers to the tune of Rs 1.22 bn.

n        Technical Comments

2010 ends with a gain of 1000 odd points

With a gain of almost 1000 point, Nifty ended the year on a positive note. Apart from this Nifty shut the year with bullish seals across all time frames (viz yearly, quarterly, monthly, weekly and daily). Moreover, the daily DMIs are bullish and 20-DSMA is following the price action of Nifty, which indicates that the current trend is still strong. However on lower time frames (i.e. hourly) Nifty has reached a key resistance line (packed at 6160 level) and the momentum oscillator RSI is quite overbought, hence we may see a down to sideways move in the coming session. However, any dip towards 6020-6060 zone, should be used for re-entering the market, if hourly momentum reverse.

BSE Realty:

BSE Realty index has seen some positive price action in today’s session and hence this index can increase upto 2936 level, which is the resistance of the upper Bollinger band in the coming session.