The Professional Ticker Reader TM

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April 02, 2005

Markets do a jack in the box. Sensex gains 162 points

Higher volumes, positive breadth as bulls bounce back

Weekly statistics

Indices	Open	High	Low	Close	Change
BSE - 30	6471	6618	6321	6605	162.17
BSE - 200	859	884	840	883	26.41
NSE - 50	2015	2071	1971	2067	52.25
Dow Jones	10404 39	Nasdaq	1985  6	FTSE	4914 9
Advances	9911	Declines	5767	Put / Call trades - 80957 : 139207
FII Investments	Rs  7513 Crs Mar 1 - 31		Domestic Funds	Rs  1603 Crs Mar 1 - 31

The BSE & NSE combined weekly value of shares advancing was Rs. 20,163 crores ( previous week Rs 9,074 crs ) and the commensurate value of shares declining was Rs. 11,010 crores ( previous week Rs 17,844 crs ). This indicates a buying bias. The total weekly traded volume on the BSE was Rs. 9,433 Crores ( previous week Rs 8,859 crs ). The total traded weekly volume on the NSE was Rs. 22,296 Crores ( previous week Rs 18,369 crs ). It maybe noted that the previous was shorter by a day due to good Friday.

The week saw a pleasant return of the bulls as the traded volumes were higher amidst institutional purchases. The market breadth was positive and the outlook improved dramatically. The index heavy-weights saw buying support and that had a salutary effect on the benchmarks. The indices crawled higher into the February trading zones and are attempting The Sensex was boosted by ACC, Bajaj Auto, Bharti Tele, BHEL, Cipla, Grasim, Guj Amb Cements, HDFC Bank, Hero Honda, Hindalco, HPCL, HDFC, ITC, ICICI Bank, Infosys, L&T, Maruti, ONGC, Reliance Energy, Reliance Inds, Satyam Computers, SBI, Telco, Tata Power, Wipro  and Zee Telefilms. The Sensex was dragged down by Dr Reddy, Hind Lever, MTNL, Ranbaxy and Tisco. The Rupee ended the week at 43.75 levels ( 00.00 ) against the US $.  Overall, the week was completely in line with our expectations. Click here to view the previous weeks report.

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• The markets are likely to take note of crude prices which are higher at US $ 57.27 / barrel ( previous week US $ 54.05 / barrel ) and are likely to be a cause for concern. Inflationary fears are likely to exert downward pressure on sentiments.

• The FII inflows are continuing to remain positive, though the flow is slowing to a trickle. The inflows last week ( Mon - Thu ) were Rs (-) 821 Crs. This includes a negative of Rs 1724 crs for the ICICI ADS figures.

• The F&O indicators point towards a lower put call ratio as the bears have covered shorts at lower levels ahead of expiry. The open interest has been cut down, which is a routine phenomena after expiry.

• The inflation figures are at 5.11 % as compared to the previous week's figures at 5.30 %. This shows no adverse impact of higher crude oil prices - atleast for now.

• The upcoming results season will see some build up of positions as investors & traders await corporate India's earnings figures.

• The revised market lots of the f&o contracts are likely to be a sentiment booster for the markets as larger number of retail players are likely to participate in the investment process.

• The market breadth points towards a mild optimism in the undertone and should be a positive indicator as long as this trend continues.

• The overseas markets markets have been weak on account of high crude oil concerns and the indices are in a downward spiral. That is likely to be a dampener in the short term.

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Technicals

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For stock specific recommendations please refer to our special edition " Flavours of the week". Click here to view the previous editions of the "Flavours of the week".

Have a profitable day.

 

Vijay L Bhambwani

Ceo :- Bsplindia.com

The author is a Mumbai  based investment consultant and invites feedback at Vijay@BSPLindia.com and  ( 022 ) 23438482 / 23400345.

SEBI disclosure -  The author has no positions in  the stocks mentioned above.

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