Recovering from early jitters, Sensex reaches Mount 25K

1. Recovering from early jitters, Sensex reaches Mount 25K
Market Snapshot | 05-06-2014 04:19 PM
Following a muted start, Indian indices nosedived in early deals to day’s low levels. Since then the sentiments turned
sanguine and markets did not look back. The benchmarks steadily recovered to go past yesterday’s closing levels to
trade in green. The Sensex stretched the levels further in the green past 25K to close near day’s high. Total 690 BSE
companies flagged fresh 52 week high today.
Among global peers, US indices climbed higher to take S&P 500 to mark its 16th record high this year shrugging off
the mixed economic reports. Tracing the positive handover from Wall-Street, Asian and European indices too crept up
after exhibiting weak trades in early deals.
Back home, on currency front, Rupee witnessed flat trades against Dollar but with a positive bias as banks and
exporters were engaged in selling Dollars on the hopes of good foreign capital inflows into equities. In futures trades,
INR hit an intra-day high of 59.38/USD and an intra-day low of 59.71/USD. In spot trades, INR hit an intra-day high of
59.22/USD and an intra-day low of 59.35/USD. As per RBI reference rates, INR stood at 59.23/USD.
On macro-economic front, to revive the Indian economy which is growing at a sub 5 level from past two fiscal years,
Government is planning to ease the Foreign Direct Investment (FDI) restrictions in e-commerce in July. With a view to
boost manufacturing and consumption through online retailers, online retailers such as Amazon.com Inc may get
permission to sell their own products in Indian retail market.
On commodities front, the yellow metal stretched the declining spree further on the first day of August expiry ahead
of monthly US jobs data and the possibility of an upcoming European Central Bank rate cut. In futures trades for
August expiry, Gold marked intra-day high at Rs 25849 per 10 grams and an intra-day low at Rs 25760 per 10 grams.
On stock-specific front, Oil Marketing Companies were on roll as the Oil Ministry is likely to consider one time hiking
of LPG and Kerosene prices in consultation with PMO and finance ministry.
Cement stocks spiked on raising the prices of cement up to 30% across various regions. Analyst expected a strong
growth in the sector in FY15. Stocks like Heidelberg Cements, Shree Cements, Orient Cements, and India Cements
soared 3-10% in intra-day trades.
Suzlon rallied 5% to mark new 52 week high at Rs 29.85 on BSE on being awarded a 100.8 MW order by ReNew
Wind Power, India’s leading IPP in the wind energy sector.
HDFC Bank slipped 1.43% in the otherwise strong market, on turning ex-dividend today. The bank shared a dividend
of Rs 6.85 per share for the year ended 31 March 2014.
The market breadth on the BSE closed in positive. Advancing and declining stocks were 2250 and 922 respectively,
while 123 scrips remained unmoved.
The S&P BSE Sensex ended at 25019.51, up 213.68 points or 0.86%. The 30 share index touched a high and a low
of 25044.06 and 24644.88 respectively. 23 stocks advanced against 7 declining ones on the benchmark index.
The CNX Nifty gained 71.85 points or 0.97% to settle at 7474.10. The index touched high and low of 7484.70 and
7360.50 respectively. 38 stocks advanced against 12 declining ones on the index.
S&P BSE Sensex CNX Nifty
The S&P BSE Mid-cap index moved up to 8955.91 and gained 1.01% while S&P BSE Small-cap index jumped up by
1.42% to 9623.92.
The broader S&P BSE 500 index increased to 9572.65 (up 1.01%) and CNX 500 index rose to 6037.65 (up 1.08%).
The volatility as denoted by INDIA VIX lost 0.77% at 15.45 from its previous close of 15.57 on Wednesday.
Sectors in action
On the BSE Sectorial front, Metals (up 3.33%), Oil & Gas (up 1.96%) and Power (up 1.96%) were the top gainers.
Banks (down 0.39%) was the sole loser among sectorials.

2. The Angels and the Devils
Sesa Sterlite Ltd (up 6.50%), Hindalco Industries Ltd (up 5.54%), Hindustan Unilever Ltd (up 4.27%), Tata Power
Company Ltd (up 3.64%) and Tata Steel Ltd (up 3.45%) were the top gainers on the Sensex.
Mahindra and Mahindra Ltd (down 1.46%), HDFC Bank (down 1.43%), Cipla Ltd (down 0.87%), Dr. Reddys
Laboratories Ltd (down 0.74%) and ICICI Bank (down 0.56%) were the top losers on the Sensex.
Benchmark Drivers
Hindustan Unilever Ltd (32.43 points), Sesa Sterlite Ltd (29.71 points), Tata Motors Ltd (27.03 points), HDFC Bank (-
25.94 points) and Infosys Ltd (25.05 points) were the major Sensex drivers today.
On the other end Infosys Ltd (8.30 points), Hindustan Unilever Ltd (8.16 points), Sesa Sterlite Ltd (7.68 points), Tata
Motors Ltd (6.91 points) and Reliance Industries Ltd (6.61 points) were the major Nifty movers today.
Pivot, Supports and Resistance Levels
CNX Nifty is now pivoted at 7440 for next session. The next support is at 7395 and on upside it has a resistance at
7519 levels.
CNX NiftyCNX Nifty
Eff. DateEff. Date S 3S 3 S 2S 2 S 1S 1 PIVOTPIVOT R 1R 1 R 2R 2 R 3R 3 Actual CloseActual Close
06-Jun-2014 7271 7316 7395 7440 7519 7564 7643 -
05-Jun-2014 7343 7367 7385 7409 7427 7451 7469 7474.10
04-Jun-2014 7281 7312 7364 7394 7446 7477 7529 7402.25
S&P BSE Sensex has a pivot at 24903 with first level of support and resistance at 24762 and 25161 respectively.
S&P BSE SensexS&P BSE Sensex
Eff. DateEff. Date S 3S 3 S 2S 2 S 1S 1 PIVOTPIVOT R 1R 1 R 2R 2 R 3R 3 Actual CloseActual Close
06-Jun-2014 24362 24504 24762 24903 25161 25302 25560 -
05-Jun-2014 24593 24683 24745 24835 24897 24987 25048 25019.51
04-Jun-2014 24428 24527 24693 24793 24958 25058 25223 24805.83
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