Pre Session Commentary - June 11 2009

Today domestic markets are likely to open positive as most of the Asian markets have opened positive. But there could be an early selling pressure on the yesterday’s gain and therefore volatility is likely to creep during the day’s trade. The frontline stocks may face some profit booking pressures however on the other hand bottom line stocks may outshine.
On Wednesday, the domestic markets closed with phenomenal gains for the second consecutive day. After a remarkable positive gap opening the markets traded firm till the end exuding signs of a strong bull run. The sentiments were reinforced by the rally across Asian markets and European bourses as well. The domestic traders were very optimistic about the frontline stocks especially in sectors like Power, CG and CD which inclined by 3.62%, 3.46% and 2.74% respectively. In BSE Sensex cap Tata Power, Reliance Infra and HDFC bank stocks were the fore runners registering gains of 6.43%, 5.99% and 5.56% respectively. Satyam stock for the second consecutive day closed with a mammoth buying freeze at Rs. 73.50, up by 9.95%. Frontline stocks outshined Mid cap and Small cap stocks as the latter recorded moderate gains of 1.59% and 0.34% respectively. We expect the markets to be trading volatile.
The BSE Sensex closed with gain of 339.81 points at 15,466.81 and NSE Nifty ended high by 104.30 points at 4,655.25. BSE Mid Caps and Small Caps closed with gains of 83.78 points and 20.81 points at 5,359.50 and 6,206.42 respectively. The BSE Sensex touched intraday high of 15,580.81 and intraday low of 15,168.18.
On Wednesday, the US Markets closed with minimal losses. The day started with a good northward trend however as the Crude oil prices inclined to 2009 high, causing apprehensions of economic growth. The increasing yield on the 10 year note consequently a higher borrowing costs and the widening trade deficit which was little up at $29.20 billion in April from $28.50 billion in March is likely to factor a negative impact on the second quarter GDP forecasts. Financials were the losers of the day as it lost 1.6%, however sectors like materials (+0.1%), telecom (+0.2%), and energy (+0.7%) managed to recover its early losses to trade in green. The US light crude oil for July delivery closed high by 1.7% at $71.14 per barrel marking a new 2009 high on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed low by 24.04 points at 8,739.02 the NASDAQ Composite (RIXF) index declined by 7.05 points to close at 1,853.08 and the S&P 500 (SPX) closed flat at 939.15.
Indian ADRs ended mixed on Wednesday. In the IT space, Satyam Computers continue to rise and was up 35.71%, while Patni Computers was up 0.09%. However, Infosys was down 0.67% and Wipro was down 1.41%. In the Banking space, HDFC Bank was up 4.63% and ICICI Bank was up 0.22%. In the Telecom space, Tata Communication was down 0.05% and MTNL was down 0.43%. In other sectors, Dr Reddy''s Labs was up 3.44%, Sterlite Industries was up 1.45% and Tata Motors was up 0.77%.
Today major stock markets in Asia are trading positive. Hang Seng is up by 72 points at 18,857.66. Shanghai Composite is up by 8.25 points at 2,824.499. Japan''s Nikkei is trading low by 29.52 points at 9,961.97. Strait Times is also low by 10.97 points at 2,380.25. KLSE Composite is flat at 1,082.987.
The FIIs on Wednesday stood as net buyers in equity and net sellers in debt. The Gross equity purchased stood at Rs 3,815.30 Crore and gross debt purchased stood at Rs 0.00 Crore, while the gross equity sold stood at Rs 2,824.60 Crore and gross debt sold stood at Rs 324.30 Crore. Therefore, the net investment of equity and debt reported were Rs 990.70 Crore and Rs (324.30) Crore respectively.
On Wednesday, the partially convertible rupee closed at 47.24/25 per dollar, 05% stronger than it previous close at 47.48/49. The rupee gained due to rally in the local stock markets, concurrently raising hopes for green back inflow.
On BSE, total number of shares traded were 57.67 Crore and total turnover stood at Rs 8,340.01Crore. On NSE, total number of shares traded was 129.39 Crore and total turnover was Rs 25,673.64 Crore.
Top traded volumes on NSE Nifty – Unitech with 92987529 shares, Suzlon Energy with 55548760 shares, NTPC with 26304587 shares, Hindalco with 16108501 shares, followed by DLC with 15340734 shares.
On NSE Future and Options, total number of contracts traded in index futures was 696122 with a total turnover of Rs 15,517.40 Crore. Along with this total number of contracts traded in stock futures were 483098 with a total turnover of Rs 28,898.06 Crore. Total numbers of contracts for index options were 1143941 with a total turnover of Rs 26,677.63 Crore and total numbers of contracts for stock options were 39501 and notional turnover was Rs 2,266.90 Crore.
Today, Nifty would have a support at 4,571 and resistance at 4,723 and BSE Sensex has support at 15,310 and resistance at 15,612.