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1. Market Wrap Up
Jan 12, 2011
The local equity indices recovered from the day's low and ended near the day's high as bargain hunting emerged after a recent steep slide.
But, high intraday volatility was the order of the day after disappointing industrial production data for November 2010. Index heavyweight
Reliance Industries (RIL) extended gains. IT pivotals gained with sector bellwether Infosys trading firm on the eve of its Q3 December 2010
results on Thursday, 13 January 2011. All the regional peers closed on green note and Europe Markets opened positive, Dow future also
showed an up-tick in screen trade.
Government data released today, showed industrial output rose at 2.7% in November 2010 as against a revised 11.30% growth in October
2010, as growth in the manufacturing output slowed sharply.
The BSE 30-share Sensex was up 338 points or +1.76% at 19534 while NSE 50-share Nifty ended the day at 5863 up 109 points or +1.90%.
Stocks Performance Top 3 Sensex Gainers:
Sterlite (+6.5%),
Banking Stocks: Union Bank (+4.0%), IDBI Bank (+2.9%), Indusind Bank (+4.0%) Tata Motors (+4.8%),
Banking stocks gained across the board in choppy trade, reversing recent slide triggered by concerns ICICI Bank (+4.5%)
higher deposits rates may impact banks' net interest margins, thereby hurting profitability.
Top 3 Sensex Losers:
Realty Stocks: Sobha Dev (+3.8%), Unitech (+6.3%), IB Real estate (+3.7%) Bajaj Auto (-1.5%),
Realty stocks recovered on bargain hunting after recent sharp losses. LT (-1.4%),
HUL (-1.3%)
IT Stocks: Financial Tech (+4.1%), OFSS (+3.5%), TCS (+3.3%)
Markets expect sequential growth in revenue and net profit of the top-tier IT companies in Q3 December Top 3 Sectoral Gainers:
2010 primarily driven by volume growth and operational efficiencies. Infosys to report results tomorrow. CD (+4.6%),
REALTY (+3.3%),
F&O Update METAL (+2.8%)
The benchmark Nifty went up by 109 points. VIX went down to 21.50 % decreasing by 3.71% from
Monday’s level. PCR is at level of 0.87 which has increased from yesterday’s level. On put side Maximum
OI is at 5700 strike level while 5600 added most open interest today. We can expect 5800 Level to act as
support in near term. Call side has maximum OI at 6200 and 6000 added most OI on Thursday. January
NIFTY futures gained premium over the spot to magnitude of 5.95 benchmark points, which is lower than
yesterday’s position. Today we entered Put side on nifty for short duration, which paid handsomely. We
had advised to use out of money options for positions, and they performed spectacularly well . The kind of
volatility we are experiencing is not reflected in prices of options. We maintain that Intraday out of money
positions would continue to pay handsome returns in next sessions. Banking was one vertical showing
strong turn around, we maintain our cautious stand on sector overall, while on oil vertical remains under
pressure as expected by us. Commodities have been a rather surprising bunch with good momentum
where rate hikes in China and India are expected to be warning signs.
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