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1. Market Wrap Up
Mar 16, 2011
The key benchmark indices ended the day near intraday highs on expectations of decent to strong Q4 March 2011 earnings following
reports companies across sectors have paid significantly higher tax in Q4 March 2011 compared with the year-ago period. European markets
were mixed while US index futures reversed initial losses. Asian shares rose led by recovery in Japanese stocks.
All the 13 sectoral indices on BSE were in positive zone. The market breadth was strong as side counters rallied. Interest rate sensitive
banking stocks rose as fears of aggressive monetary tightening by the central bank eased. Auto and software stocks were in demand on
fresh buying after the recent fall. Reliance Anil Dhirubhai Ambani (ADA) group rose on renewed buying. Index heavyweight Reliance
Industries (RIL) gained on reports of higher advance tax payment in Q4 March 2011 whereas FMCG giant Hindustan Lever fell on lower
advance tax payment.
As per reports, advance tax payments made by top 100 firms based in the country's financial capital rose by 25% in the Q4 March 2011 over
Q4 March 2010, hinting robust earnings. Companies pay advance tax every quarter based on their projected income for the year. Higher
advance tax collections reflect more income for firms indicating that companies' sales are growing to meet rising demand.
The BSE 30-share Sensex was up 191 points or +1.05% at 18359 while NSE 50-share Nifty ended the day at 5511 up 62 points or +1.13%.
Stocks Performance Top Sensex Gainers:
Reliance Infra (+5.2%),
Banking Stocks: Yes Bank (+5.0%), Canara Bank (+4.1%), SBI (+3.1%), ICICI Bank (+3.0%)
SBI (+3.1%),
Interest rate sensitive banking stocks rose as fears of aggressive monetary tightening by the central bank
ICICI Bank (+3.0%)
eased, with crude trading off recent 29-month highs.
ADAG stocks: Reliance Infra (+5.02%), Reliance Capital (+1.7%), RCOM (+2.0%), RPower (+2.4%) Top 3 Sensex Losers:
Anil Dhirubhai Ambani (ADA) group shares rose on renewed buying. Reliance Capital and Nippon Life HUL (-1.2%),
Insurance has signed a pact to acquire a 26% stake in its life insurance venture -- Reliance Life Insurance Hindalco Ind. (-0.6%),
(RLIL) on Monday. Nippon Life Insurance will invest an aggregate value of Rs 3062 crore ($680 million) Cipla (-0.5%)
thus valuing RLIL at approximately Rs 11500 crore ($2.6 billion).
Top 3 Sectoral Gainers:
F&O Update REALTY (+2.5%),
The benchmark Nifty gained 62 points. VIX went down to 24.9% decreasing by 6.5% from Tuesday’s level. BANKEX (+2.3%),
PCR (open interest) for Option series is at 1.35 with substantial increase in Put side and marginal increase CD (+1.7%)
in Call side open interest. On put side Maximum OI is at 5400 strike level while 5500 strike added most
open interest today. We can expect 5400 Level to act as support in near term. March series Call side has
maximum OI at 5700 with 5700 strike call saw maximum OI addition today which indicates immediate
resistance at 5700. March NIFTY futures closed at 16 points premium over the spot. Post-budget, the
markets have show good momentum but a close above 50 week moving average (WMA) will indicate
trend reversal. Markets may remain extremely volatile and we advise investors to do fresh buying only if
the markets convincingly close above the 50WMA i.e. 18600 and 5600 respectively. On the other hand,
markets will continue to remain weak below 18000 and 5400 levels respectively.
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