The Professional Ticker Reader TM

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Dec 18, 2004

Markets display further strength. Sensex gains 113 points.

Lower volumes, positive breadth as old economy stocks rally.

Weekly statistics

Indices	Open	High	Low	Close	Change
BSE - 30	6231	6437	6220	6346	112.94
BSE - 200	827	858	826	849	22.36
NSE - 50	1970	2039	1964	2012	43.10
Dow Jones	10650 107	Nasdaq	2135 7	FTSE	4697 3
Advances	8679	Declines	7171	Put / Call trades - 41326 : 107794
FII Investments	Rs  4168 Crs Dec 1 - 16		Domestic Funds	Rs  639 Crs Dec 1 - 16

The value of shares advancing was Rs. 36,965 crores ( previous week Rs 29,723 Crs ) and the value of shares declining was Rs. 16,335 crores ( previous week Rs 27,114 Crs ). This indicates a buying bias. The total traded volume on the BSE was Rs. 29,977 Crores ( previous week Rs 32,653 Crs ). The total traded volume on the NSE was Rs. 23,456 Crores ( previous week Rs 24,421 Crs )

The markets opened on a firm footing and ended the week with strong gains. But for the late selloff, the week would have ended on a highly positive note. The market breadth was positive and the undertone was optimistic. The lower traded volumes as compared to the previous week remain a cause for minor concern. There was an air of anxiety amongst the bulls as the markets entered a new bull orbit. Profit taking was rampant at higher levels. The Sensex was boosted by ACC, Bajaj Auto, Bharati Tele, BHEL, Cipla, Dr Reddy, Grasim, Guj Amb Cements, HDFC, HDFC Bank, Hero Hondal, Hind Lever, HPCL, Hindalco, Infosys, L&T, Maruti, MTNL, ONGC, Ranbaxy, Reliance Energy, Satyam Computers, Telco, Tata Power, Tisco, Wipro and Zee Telefilms. The Sensex was dragged down by ITC, Reliance Inds and SBI. The Rupee ended the week at 43.93 levels ( 00.61 ) 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 firming up lately to test the US $ 46 barrel mark. The Nymex futures closed at US $ 46.28 / barrel ( previous week level was $ 40.71 / barrel ).

• The FII inflows are continuing to be strong as the net inflows in the first four sessions this week sum up to Rs 1135 Crs. That is likely to enthuse the bulls.

• The F&O indicators point towards a rising short position on the Nifty as the players hedge their stock long positions with Nifty short sales.

• The Rupee has started strengthening again and that is likely to enthuse the FII's who are likely to continue investing in the country.

• The Reliance imboglio is likely to drag the sentiments lower as the issue shows no signs of immediate resolution. Being heavily weighted in the indices, the scrips can be drag on the markets. Refer to our special Reliance report later over the weekend.

• The market breadth points towards an optimism in the undertone as the BSE & NSE combined advance decline ratio shows the bulls retaining the initiative. 

• The overseas markets have been steady and are unlikely to exert excessive downward pressure on domestic sentiments.

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Technicals

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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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