Weekly market view. July 10, 2004
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July 10, 2004 |
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The value of shares advancing was Rs. 17,167 crores ( previous week Rs. 19,072 crores ) and the value of shares declining was Rs. 12,948 crores ( previous week Rs. 11,867 crores ). This indicates a marginal selling bias. The total traded volume on the BSE was Rs. 9,008 Crores ( previous week Rs. 9,441 Crores). The total traded volume on the NSE was Rs. 21,950 Crores ( previous week Rs. 21,973 Crores ). The traded volumes were marginally lower this week as compared to the previous week.
The week marked the
announcement of the union budget and the accompanying volatility that saw
the indices do the flip flop. The traded volumes were marginally lower
than the previous week and the market breadth was negative, which shows a
cautious undertone prevailing in the markets. The boost was seen in the
index frontline counters especially in the telecom, pharmaceuticals and
cyclical sectors. The Sensex was boosted by ACC,
Bajaj Auto, Bharati Tele, BHEL, Cipla, Dr Reddy, Guj Amb Cem, HDFC Bank,
HDFC, Hindalco, ITC, L&T, MTNL, Ranbaxy, Reliance, Telco, Tata Power,
Tisco and Zee Telefilms . The Sensex was
dragged down by Grasim, Hero Honda, Hind Lever, HPCL,
Infosys, ONGC, Reliance Energy, Satyam Computers, SBI and Wipro . The rupee ended the
week at 45.66
levels ( Top I Derivatives guide I Likely triggers I Technicals I Reco's I The markets are likely to remain optimistic till Tuesday when the SEBI chairman meets the FM for considering the turnover tax issue. The FII's have not evinced any strong negative response to the budget and were net buyers to the tune of Rs 148 Crs. The traded volumes in the week were slightly lower which is a sign of concern. The F&O indicators point towards a fall in open interest however marginal. The traded volumes in the F&O segment were 8 % higher on a week on week basis. The put call ratio suggests a buildup of short positions on the indices as the stock options show a marginal tilt towards increasing put options. The rising crude oil prices remain a cause of concern and is likely to cap the upsides in the short term. The Rupee has gained against the US $ and that may see some selling on technology counters. The supply from the Infosys bonus shares is also likely to see the scrip remaining sideways / down and therefore limiting the market upsides. Much will depend on the Tuesday meeting with the FM on the turnover tax issue. The overseas markets have been subdued due to the earning season kicking in the numbers and fears that the profit growth maybe lower than expected. Overall, we expect an optimistic undertone with profit sales on major advances. Top I Derivatives guide I Likely triggers I Technicals I Reco's I This segment is for paid subscribers only. Top I Derivatives guide I Likely triggers I Technicals I Reco's I
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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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74.90
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