The Professional Ticker Reader ®

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June 25, 2005

Markets zoom for fifth week. Indices at record highs

Higher volumes, negative breadth as bulls book profits

Weekly statistics

Indices	Open	High	Low	Close	Change
BSE - 30	6940	7178	6940	7148	242.10
BSE - 200	901	924	900	921	23.67
NSE - 50	2130	2204	2124	2194	70.95
Midcap 200	3028	3037	2971	3029	23.65
CNX-IT	2931	3079	2931	3023	69.95
NCDEX Agri	1254	1258	1250	1257	03.82
Dow Jones	10298  325	Nasdaq	2053  37	FTSE	5079  1
Advances	7578	Declines	8902	Put / Call trades - 115013 : 207510
FII Investments	Rs  3482 Crs June 1 - 23		Domestic Funds	Rs  1320 Crs June 1 - 23

The BSE & NSE combined weekly value of shares advancing was Rs. 32,106 crores ( previous week Rs 19,414 crs ) and the commensurate value of shares declining was Rs. 18,263 crores ( previous week Rs 12,259 crs ). This indicates a selling bias. The total weekly traded volume on the BSE was Rs. 15,396 Crores ( previous week Rs 10,948 crs ). The total traded weekly volume on the NSE was Rs. 35,255 Crores ( previous week Rs 21,144 crs ).

The week saw a record scaling performance by all the exchanges as the NSE, BSE and NCDEX indices saw new highs being scaled. The traded volumes ballooned and the sentiments were clearly upbeat. The market breadth remained negative as the weaker bulls preferred to lock in gains at higher levels. The trigger was clearly the Reliance settlement which kick started the bullish momentum in the domestic markets. The Sensex was boosted by ACC, Bajaj Auto, Bharti Tele, Cipla, Dr Reddy, Grasim, Guj Amb cements, Hero Honda, Hindalco, Hind Lever, ITC, ICICI Bank, Infosys, L&T, Maruti, NTPC, ONGC, Ranbaxy, Reliance Energy, Reliance Inds, Satyam Computers, SBI, Tisco, Telco, Tata Power, TCS and Wipro. The Sensex was dragged down by BHEL, HDFC Bank, HDFC and MTNL. The Rupee ended the week at 43.53 levels ( 00.03 ) 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 at all time highs at US $ 59.84 / barrel ( previous week US $ 58.47 / barrel ).

• The FII inflows are positive by Rs 2713 Crs between Mon - Thurs. That is likely to remain a major positive for the bulls.

• The F&O indicators point towards a 8 % jump in open interest on higher volumes. The Nifty PCR stands at a near record high of 1.53 : 1

• Inflation figure of 4.33 % is higher than the previous weeks figure of 4.22 %. In the coming weeks, expect the inflation to rise on account of rising crude prices.

• The market breadth points towards a selling bias from the short term players and cynical players at higher levels. Of the entire traded volumes of the week, only 35 % was initiated on uptick days. That signifies a selling bias in the near term.

• The overseas markets have reacted negatively to the high crude prices and the coming announcement by the Fed on the state of the US economy on the 30 th of June is likely to be the next trigger.

• Please refer to our detailed reports on the Midcap stocks, f&o strategies, commodities, crude & currencies and market intelligence for a broader perspective on the market outlook.

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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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