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Jan 29, 2005

Markets witness turnaround. Sensex gains 236 points.

Higher volumes, positive breadth as bulls strike back.

Weekly statistics

Indices	Open	High	Low	Close	Change
BSE - 30	6201	6432	6069	6419	235.85
BSE - 200	817	851	806	850	33.27
NSE - 50	1925	2014	1894	2008	83.00
Dow Jones	10427  34	Nasdaq	2036  2	FTSE	4833  29
Advances	7481	Declines	4864	Put / Call trades - 44737 : 103544
FII Investments	Rs  282 Crs Jan 1 - 27		Domestic Funds	Rs  529 Crs Jan 1 - 29

The value of shares advancing was Rs. 28,308 crores ( previous week Rs. 13,520 crores ) and the value of shares declining was Rs. 9,841 crores ( previous week Rs. 21,622 crores ). This indicates a buying bias. The total traded volume on the BSE was Rs. 18,389 Crores ( previous week Rs. 16,485 Crores ). The total traded volume on the NSE was Rs. 20,209 Crores ( previous week Rs. 18,728 Crores ).

The markets witnessed a sharp turnaround in sentiments as the bulls struck back with a vengeance. The last day of the week saw a big gain second only to the post May 17 meltdown. The market breadth turned positive after a fortnight of attrition and the sentiments were clearly in favour of the bulls. The Sensex was boosted by ACC, Bajaj Auto, Bharti Tele, BHEL, Cipla, dr Reddy, Grasim, Guj Ambuja Cements, HDFC Bank, Hind Lever, HPCL, Hindalco, ICICI Bank, Infosys, ITC, L&T, Maruti, MTNL, ONGC, Ranbaxy, Reliance Energy, Reliance Inds, Satyam Computers, SBI, Telco, Tata Power, Tisco, Wipro and Zee Telefilms. The Sensex was dragged down by HDFC and Hero Honda. The Rupee ended the week at 43.72 levels ( 00.07 ) against the US $. Overall, the week was above 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 $ 47.18 / barrel ( previous week $ 48.53 / barrel ) and are showing signs of easing on the eve of elections in Iraq.

• The FII inflows are negative for the month as the above table indicates. However, Jan 27 recorded inflows of Rs 199 Crs, which is likely to bolster bullishness.

• The recent development of the permission being granted to the provident funds to invest in equities is extremely positive. The selloff in Maruti and BHEL are other positive indicators.

• The F&O indicators point towards a routine fall in the open interest after expiry. However, the Nifty PCR has risen to the 0.95 : 1. That shows a hedging of longs on stock futures with Nifty shorts.

• The rising US $ is likely to boost the sentiments for the technology stocks in the coming week and being heavily weighted on the indices, that is likely to boost the markets. 

• The market breadth points towards an optimism in the undertone and the weekly advance decline ratio is positive after a fortnight.

• The overseas markets have managed to stem the bearish tide to end higher on a week-on-week basis. That will lend a stabilising effect on the domestic sentiments 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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