The Professional Ticker Reader TM

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Oct 30, 2004

Markets attempting recovery. Sensex gains 31 points.

Higher volumes, positive breadth as bulls cheer lower oil prices.

Weekly statistics

Indices	Open	High	Low	Close	Change
BSE - 30	5633	5733	5558	5672	31.21
BSE - 200	743	754	731	746	01.78
NSE - 50	1780	1808	1750	1786	07.15
Dow Jones	10027 270	Nasdaq	1975 60	FTSE	4624 9
Advances	7247	Declines	6990	Put / Call trades - 60349 : 147272
FII Investments	Rs  2847 Crs Oct 1 - 28		Domestic Funds	Rs  366 Crs Oct 1 - 28

The BSE & NSE combined weekly value of shares advancing was Rs. 16,084 crores ( previous week Rs. 8,593 crores ) and the commensurate value of shares declining was Rs. 12,739 crores ( previous week Rs. 10,731 crores ). This indicates a broader buying bias. The total traded weekly volume on the BSE was Rs. 8,530 Crores ( previous week Rs. 5,982 Crores ). The total traded weekly volume on the NSE was Rs. 20,365 Crores ( previous week 13,496 Crores ). A fair comparison with previous weeks figures is not possible on account of a holiday last week.

The week saw a consolidation in the markets as the bulls and bears fought to control the sentiments. The earnings season added to the volatility as players shuffled resources across counters as the numbers were out. The market breadth was positive and the volumes were improved over the previous week. A fair comparison with previous weeks figures is not possible on account of a holiday last week. The Sensex was boosted by Bajaj Auto, Bharti Tele, Cipla, Dr Reddy, HDFC Bank, ICICI Bank, Infosys, ITC, L&T, MTNL, Ranbaxy, Satyam Computers, Tata Motors, Tisco and Wipro. The Sensex was dragged down by ACC, BHEL, Grasim, Guj Ambuja Cements, HDFC, Hero Honda, Hind Lever, HPCL, Hindalco, ONGC, Reliance Energy, Reliance Inds, SBI, Tata Power and Zee Telefilms. The Rupee ended the week at 45.38 levels ( 00.35 ) against the US $. Overall, the week was in line with our expectations. Click here to view the previous week's files.

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• The markets are likely to be influenced by the crude oil prices which are almost 8 % lower from the previous weeks highs of $ 55.50 / barrel mark. That is a positive trigger for the markets.

• The Chinese authorities' decision to hike interest rates have sparked off a wave of nervousness in the global financial markets and this effect is likely to persist in the absolute short term. The markets are likely to factor in these developments in the coming week.

• The FII inflows continue to remain positive with a whopping Rs 985 Crs inflows in the first 4 days of the week. This figure includes a few block deals.

• The F&O indicators point towards a healthy rollover of positions and squaring up of shorts at lower levels, which indicates that the market will slide rather than see a steep fall in the event of weakness in the coming week.

• The weakening US $ is likely to impact the sentiments adversely for the technology stocks in the coming days. That is likely to keep the broader indices capped on the upsides.

• The possibility of higher petroleum prices in the domestic markets will keep the upsides in the markets limited to an extent.

• The weekly market breadth on a combined exchange basis shows a positive undertone in the near term, and 37 % of the weekly traded volumes were transacted on uptick days ( positive market days ).

• The elections in the USA will also cause a slight nervousness on the technology pack, however slight.

• The overseas markets have shown a remarkable improvement in this week as the above table indicates. That is likely to be a positive rub off on the domestic sentiments.

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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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