Strong movements expected in the markets

Srujani Panda / 01 Oct 2011

The markets may open sideways in line with global cues. The SGX Nifty is trading down by 41 points at 4995 indicating a gap down opening.

Overnight most US stocks ended higher in a volatile session as better-than-expected economic data and German approval of EFSF fund soothed the crisis fears hanging over the markets.  Asian stock markets are trading mixed on with many investors remaining cautious as policy makers in Europe continue their efforts to contain debt crisis.

Benchmark Indices
Index Closing % Change
SENSEX 16698.07 1.53
NIFTY 5015.45 1.41
Dow Jones 11153.98 1.3
S&P 500 1160.4 0.81
NASDAQ 2480.76 -0.43
Bovespa 53384.7 0.21
FTSE 5196.84 -0.4
DAX 5639.58 1.1
CAC 3027.65 1.07
LIVE
Hang Seng 17716.18 -1.64
Nikkei 8723.12 0.25
Shanghai 2357.48 -0.33


Back home, the September series expired yesterday on a strong note as Nifty October futures settled above 5000 with significant premium to spot. The market undercurrent seems to have changed from bearish to bullish on day of expiry as traders rolled over long positions in the Nifty October series.

With the Q2FY11 earning season coming close we recommend our readers to closely watch the management commentary at the time of announcement of Q2 September 2011 results, which will provide cues on futures earnings outlook.

Key Global Indicators

  Gold (Rs/10gm) Crude ($/bbl)
Cash 25446 106.31
% change - -0.12
Future 25732 82.7
% change 0.23 0.68

In conclusion, for today we expect markets to initially remain volatile in line with global cues and show some strong movements in the later half of the day. Our technical analyst has provided us with some key support and resistance levels for the nifty to help you trade better.

 Nifty Trading Levels
S1 4980 R1 5045
S2 4935 R2 5090
S3 4888 R3 5125


Corporate News

Reliance ADA Group has found itself trouble again as the CBI has sought to turn the three jailed Reliance ADA executive as approvers in the case. The CBI has also told the apex court that the role of Anil Ambani and other employees in the sale of Swan to Delphi is also being investigated.

Lanco Infra has stated that they would vigorously defend Perdaman's allegations. Perdaman had alleged that Lanco Infra violated australia coal pact.

Unitech shareholders reject the proposed dividend for FY11 as they considered that the company should rather look into repaying and reducing its debt. Experts from the markets have called this as a very mature step by the shareholders of the company.

Reliance Broadcast Network’s (RBNL) members have approved issue of equity shares to qualified institutional buyers (QIB) to raise up to Rs 1,000 crore for funding its radio and television network expansion.

Oberoi Realty has purchased 50% stake in I-Ven Realty, a prime 4 acre plot at Worli in Mumbai from private equity firm ICICI Venture.

After petrol, prices of CNG in the national capital are likely to be hiked by a steep Rs 2 per kg this week. IGL the sole supplier of CNG and piped cooking gas to households in the NCR may announce a hike in CNG price over the weekend.

GAIL India has become the first government-owned energy company to get a foothold in the US market after it entered into a deal with Carrizo Oil and Gas Inc for acquiring 20 per cent stake in Eagle Ford shale acreage for USD 95 million. GAIL further plans to invest USD 200 million over the next five years in assets.

SpiceJet, the low-cost air carrier, on Thursday got its shareholders’ approval to issue additional equity shares to promoter Kalanithi Maran, who in turn will infuse Rs 130 crore into the airline. Maran’s equity holding would go up from 38 per cent to 43 per cent of the company’s shares.

Power Grid has commissioned the transmission system for two units of the Mundra Ultra Mega Power Project (UMPP) in Gujarat. The 4,000 MW Mundra project, being developed by Tata Power, would be the first UMPP to start power generation in the country.

BSE Institutional Turnover
   FII DII
Trade Date  Buy  Sales  Net  Buy  Sales  Net
29-Sep-11 3,539.32 3,769.62 -230.3 1,058.77 1461.65 -402.88
28-Sep-11 2,705.14 2,520.17 184.97 907.32 791.73 115.59
27-Sep-11 2,132.80 2,098.72 34.08 960.76 690.71 270.05
Sep-11 47,785.47 50,414.89 -2629.42 19,999.78 18,770.04 1229.74

FII DERIVATIVES STATISTICS FOR 29-Sep-2011
  Buy Sell Open Interest (End of Day) Net Position
  No. of contracts Rs (crore) No. of contracts Rs (crore) No. of contracts Rs (crore) Rs (crore)
Index Futures 227507 5634.53 246751 6118.42 509662 12754.86 -483.89
Index Options 604584 14894.7 556167 13761.85 1355022 33980.23 1132.85
Stock Futures 299057 7129.78 278606 6544.45 1079112 26256.33 585.32
Stock Options 10357 243.14 8617 203.99 10581 290.87 39.16
Total 1141505 27902.14 1090141 26628.71 2954377 73282.29 1273.44

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