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July 02, 2005

Markets zoom into record highs. Sensex gains 62 points

Steady volumes, negative breadth as FMCG & pharma lead rally

Weekly statistics

Indices	Open	High	Low	Close	Change
BSE - 30	7136	7228	7034	7210	62.15
BSE - 200	921	930	907	926	05.22
NSE - 50	2194	2226	2162	2211	17.55
Midcap 200	3034	3054	2960	3034	05.60
CNX-IT	3009	3082	2981	3051	28.10
NCDEX Agri	1252	1252	1234	1234	19.24
Dow Jones	10303 05	Nasdaq	2057  04	FTSE	5161 82
Advances	7543	Declines	8915	Put / Call trades - 116584 : 221003
FII Investments	Rs  5759 Crs June 1 - 30		Domestic Funds	Rs  1785 Crs June 1 - 30

The BSE & NSE combined weekly value of shares advancing was Rs. 31,977 crores ( previous week Rs 32,106 crs ) and the commensurate value of shares declining was Rs. 18,259 crores ( previous week Rs 18,263 crs ). This indicates a marginal selling bias. The total weekly traded volume on the BSE was Rs. 14,955 Crores ( previous week Rs 15,396 crs ). The total traded weekly volume on the NSE was Rs. 35,483 Crores ( previous week Rs 35,255 crs ).

The week saw a continuation of the previous weeks upmove extending to the eighth week of bullishness. The sentiments were upbeat as the indices created history by notching up new highs. The market breadth continued to remain negative as the midcap segment remained under pressure from profit sales. The traded volumes were comparable to the previous weeks figures with little change. The limelight shifted to the FMCG & pharmaceuticals sector. The Sensex was boosted by ACC, Bajaj Auto, Bharti Tele, BHEL, Cipla, Dr Reddy, HDFC, HDFC Bank, Hind Lever, ITC, ICICI Bank, Infosys, L&T, ONGC, Reliance Energy, Satyam Computers, SBI, Tata Power and TCS. The Sensex was dragged down by Grasim, Guj Ambuja Cements, Hero Honda, Hindalco, MTNL, Maruti, NTPC, Ranbaxy, Reliance Inds, Tisco, Tata Motors and Wipro. The Rupee ended the week at 43.51 levels ( 00.02 ) 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 marginally lower at US $ 58.75 / barrel ( previous week US $ 59.84 / barrel ).

• The FII investments are continuing to remain firm as the week saw inflows of Rs 1922.70 Crs between Mon - Thurs. That will remain the single largest trigger for the markets.

• The F&O indicators point towards a routine paring of exposure on expiry. However, the Nifty PCR remained higher than average post expiry. This indicates a high short sale bias even after expiry of the June series.

• Inflation figure of 4.10 % is lower than the previous weeks figure of 4.33 %. That is a positive trigger.

• The market breadth points towards a selling bias at higher levels. Of the entire traded volumes of the week, 33 % was initiated on uptick days. That signifies a lack of buying conviction at higher levels.

• The overseas markets are subdued on account of high energy costs and rising interest rates. That is unlikely to exert any significant influence on the domestic markets.

• For a complete perspective on the market trends, please refer to our editions on f&o, mid-cap, commodities, currency and crude specials.

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Technicals

This segment is for paid subscribers only

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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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