1. Market Wrap Up
June 13, 2011
Some buying interest at lower levels of the trade at Dalal Street helped a modest bounce back amid negative global setup for the domestic
markets that managed to close flat with a positive bias today. The benchmark indices juggled between green and red in the latter part of the
day. It was the bounce back of Consumer Durable, Power and Capital Goods space into green that put back on track the lost momentum of the
local indices, which fell to two-week low in early trade today due to persistent selling pressure by foreign funds. The main culprit being the
overall drag in the commodity basket, tracking weak global cues al0ong with the sharp fall in heavyweight RIL. RIL fell by over 2% on the
bourses today as investors reacted negatively to the news that CAG has said the Oil Ministry and its technical arm, the Directorate General of
Hydrocarbons (DGH), bent rules for Reliance Industries. CAG said the DGH allowed Reliance to hike capital expenditure for developing
Dhirubhai-1 and 3. Suggesting the company grossly overstated its development costs in India's largest gas field, possibly causing 'significant'
financial losses to the exchequer.
The local indices were showing lack of vigor as the regional cues were sluggish and plunged to their lowest level, but the consumer durable and
power sector helped the markets to recover, also the rebound in the regional peer Shanghai Composite too helped the markets to enter the
green in early part of post noon session, the positive trading of the European markets after a soft opening too boosted the morale of the
domestic markets and in early noon session they touched the high points of the day. But lacking any major trigger the trade turned choppy and
the investors started booking profits at the higher levels. Also cautiousness crept in ahead of the WPI numbers for April to be announced
tomorrow. The street expects the WPI to be 8.70% in May, up slightly from the previous month on the back of rising food and fuel prices. Rate
sensitive’s too remained in cautious mood with expectation of another rate hike in the forthcoming policy meet of the RBI.
On the global font, US stocks fell for the sixth straight week on Friday, giving the Dow Jones Industrial Average its longest slump since 2002, on
investor concern of slow recovery in global economy. Meanwhile, Asian shares ended mostly lower today though, the Hong Kong market
staged a late-session turnaround as banking shares rebounded. Meanwhile, in China, ongoing concerns about further tightening from Beijing
dented the share market prospects. The European shares stabilised after the previous session's sharp sell-off, as analysts said global growth
worries and the Greek debt crisis would continue to weigh on the market.
The BSE 30-share Sensex was down 2.51 points or -0.01% at 18266 while NSE 50-share Nifty ended the day at 5483 down 3 points or -0.05%
Stocks Performance
Auto Stocks Recover: Bajaj Auto (+3.6%), Tata Motors (+3.2%), M&M (+2.5%) Top 3 Sensex Gainers:
Most auto stocks rose on bargain hunting after recent losses with relief that the Finance Secretary Sunil Mitra said J P Associates (+3.6%),
the government has extended the popular tax refund scheme offered to exporters viz. the Duty Entitlement Pass NTPC (+2.16%),
Book scheme until 30 September 2011. Cipla (+2.02%)
Top 3 Sensex Losers:
Metal stocks extended recent losses: Bhusan Steel (-3.27%), National Alum (-1.51%), Sesa Goa (-1.51%)
Weaker-than-expected Chinese bank lending data for May 2011 raised concerns about slowdown of Chinese Hindalco Indus (-2.25%),
economy. RIL (-1.95%),
F&O Update Tata Steel (-1.14%)
The benchmark Nifty lost 3 points. VIX stood at 18.91% increased by 1.99% from Friday’s level. PCR (open Top Sectoral Gainers:
interest) for Option series is at 1.23 with marginal decrease in Put side and increase in Call side open interest (OI). Consumer Durables (+1.39%),
On put side Maximum OI is at 5400 strike while 5500 strike saw maximum open interest addition today. We can Power (+0.74%)
expect 5400 Level to act as support in near term. June series Call side has maximum OI at 5800 with 5700 strike Consumer Goods (+0.71%)
call saw maximum addition of OI today which indicates immediate resistance at 5800. June Nifty futures closed at
15 points premium to the spot. The market's intermediate trend remains down. The last intermediate bottom for
the Sensex was at 17,775, and a breach of that figure would invalidate the other bull market signal as well. There
has also been a recent increase in the number of heavily traded stocks falling into major downtrends. There is,
therefore, some danger that the bull market that was signaled may be aborted. That danger will recede should an
intermediate uptrend develop now.
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