The Professional Ticker Reader TM

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Jan 08, 2005

Markets in a tailspin. Sensex crashes 182 points.

Higher volumes, negative breadth as bulls get a new year knock.

Weekly statistics

Indices	Open	High	Low	Close	Change
BSE - 30	6626	6696	6324	6420	182.23
BSE - 200	890	904	846	861	24.85
NSE - 50	2080	2120	1984	2015	65.00
Dow Jones	10604 179	Nasdaq	2089 87	FTSE	4854 40
Advances	7639	Declines	8230	Put / Call trades - 57087 : 148940
FII Investments	Rs  457 Crs Jan 1 - 6		Domestic Funds	Rs  205 Crs Jan 1 - 6

The BSE & NSE combined weekly value of shares advancing was Rs. 24,607 crores ( previous week Rs Rs. 32,769 crores ) and the value of shares declining was Rs. 30,714 crores ( previous week Rs. 15,019 crores ). This indicates a marginal selling bias. The total traded volume on the BSE was Rs. 26,886 Crores ( previous week Rs 23,922 Crores ). The total traded volume on the NSE was Rs. 28,617 Crores  ( previous week Rs 24,423 Crores ).

The week started off on a bullish note, only to end with sharp losses as the bulls surrendered their positions on the back of nervousness. The traded volumes showed a spurt which indicates a negative undertone. The market breadth was expectedly negative and the capitalisation of the breath also shows a selling bias. The imminent announcement of results has not seen the routine build-up and the coming weeks are very crucial for the markets. The Sensex was boosted by ACC, Guj Ambuja Cements, Hero Honda, Reliance Energy and Reliance Industries. The Sensex was dragged down by Bajaj Auto, Bharti Tele, BHEL, Cipla, Dr Reddy, Grasim, HDFC, HDFC Bank, Hind Lever, HPCL, Hindalco, ICICI Bank, Infosys, ITC, L&T, Maruti, MTNL, ONGC, Ranbaxy, Satyam Computers, SBI, Telco, Tata Power, Tisco, Wipro and Zee Telefilms. The Rupee ended the week at 43.75 levels ( 00.33 ) against the US $. 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 $ 45.43 / barrel ( previous week $ 43.45 / barrel ) on Saudi output cut fears. This is likely to fuel inflation fears.

• The FII inflows are turning negative, even if marginally. That is causing concern amongst the market players.

• The INR has shown signs of slipping against the US $ and the FII investments will be indicated by the forex movements in the coming days.

• The FM is likely to announce banking sector reforms and that will keep hopes alive in the markets in the coming week. 

• The F&O indicators point towards a rising open interest even after the recent fall and the bulls are not showing signs of panic yet. The Nifty PCR stands at 0.92 : 1. The F&o indicators will point towards an advance warning of market gyrations.

• The market breadth points towards a slight nervousness in the undertone and of all the transacted volume of last week, 52 % was initiated on positive market breadth days. This shows an absence of panic sales.

• The overseas markets have been under pressure from oil, currency and economic data fronts. That is likely to cap gains in the domestic markets also in the coming week.

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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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