The Professional Ticker Reader TM

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Jan 22, 2005

Market attempting to find its feet. Sensex gains 9 points.

Lower volumes, negative breadth point towards selling bias.

Weekly statistics

Indices	Open	High	Low	Close	Change
BSE - 30	6202	6267	6087	6183	09.42
BSE - 200	828	834	808	817	08.85
NSE - 50	1931	1956	1900	1925	05.80
Dow Jones	10393 165	Nasdaq	2034  54	FTSE	4803 17
Advances	4650	Declines	7762	Put / Call trades - 43634 : 103581
FII Investments	Rs  27 Crs Jan 1 - 19		Domestic Funds	Rs  412 Crs Jan 1 - 19

The BSE & NSE weekly combined value of shares advancing was Rs. 13,520 crores ( previous week Rs 17,177 crores ) and the value of shares declining was Rs. 21,622 crores ( previous week Rs. 30,493 crores ). This indicates a selling bias. The total weekly traded volume on the BSE was Rs. 16,485 Crores ( previous week Rs 22,807 Crores ). The total weekly traded volume on the NSE was Rs. 18,728 Crores ( previous week Rs 25,306 Crores ). Please note, this week was a shorter one and therefore a fair comparison with previous weeks figures is not possible.

The week began on a shaky note and ended flat after a mid-week dive. The traded volumes were lower even after adjusting for a holiday and the market breadth was negative as the above table indicates. The pre-result rally was missing and no amount of good news seemed to cheer the markets. The market players seem to seek direction as the FII's are conspicuous by their selling. The Sensex was boosted by Cipla, Grasim, HDFC, Hero Honda, Hind Lever, Hindalco, ITC, L&T, ONGC, Reliance Energy, Tata Power, Tisco and Wipro. The Sensex was dragged down by ACC, Bajaj Auto, Bharti Tele, BHEL, Dr Reddy, Guj Amb Cements, HDFC Bank, HPCL, ICICI Bank, Infosys, Maruti, Ranbaxy, Reliance Inds, Satyam Computers, SBI, Telco and Zee Telefilms. The Rupee ended the week at 43.65 levels ( 00.09 ) against the US $. Overall, the week was 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 at US $ 48.53 / barrel ( previous week $ 48.53 ) and remain unchanged inspite of milder winter expectations.

• The FII inflows are now negative as the above table indicates and Rs. 226 Crs worth of shares were offloaded by them in the first 3 days of the week gone by.

• The F&O indicators point towards a marginal short covering at lower levels as the historical evidence suggests lower carryover of short positions as compared to long positions. The Nifty PCR stood at 0.85 : 1

• The market breadth points towards a weak undertone as the figures remain negative for the second week running. Of the entire traded volumes executed, only 23 % was transacted on bullish market days. That shows a selling bias at higher levels.

• The overseas markets have been weak inspite of strong earnings as bulls prefer to stay away from equity exposure. That is likely to be a dampener for the domestic markets also.

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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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