The Professional Ticker Reader TM

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July 17, 2004

Markets consolidating gains. Sensex gains 6 points.

Poor volumes, positive breadth as markets await monsoons.

Weekly statistics

Indices	Open	High	Low	Close	Change
BSE - 30	4949	4978	4835	4951	05.69
BSE - 200	638	646	627	645	06.89
NSE - 50	1548	1569	1517	1558	05.60
Dow  Jones	10140 73	Nasdaq	1883  63	FTSE	4339 54
Advances	7798	Declines	4670	Put / Call trades - 42778 : 75453
FII Investments	Rs  273 Crs July 1 - 15		Domestic Funds	Rs  22 Crs July 1 - 15

The value of  shares advancing was Rs. 18,143 crores ( previous week Rs. 17,167 crores ) and the value of shares declining was Rs. 7,429 crores ( previous week Rs. 12,948 crores). This indicates a broader buying bias. The total traded volume on the BSE was Rs. 7,466 Crores ( previous week Rs. 9,008 Crores ). The total traded volume on the NSE  was Rs. 18,467 Crores ( previous week Rs. 21,950 Crores).

The week saw a tumultuous trade as the post budget reactions were seen in the markets. The turnover tax issue saw a lull in traded volumes as the day traders and jobbers abstained for three days. The market breadth was positive and the undertone was firm. This marks the second week in a row that the underlying currents remain optimistic. The technology, steel, textiles and pharmaceutical stocks were the major gainers during the week. The Sensex  was boosted by BHEL, Cipla, Hind Lever, Hindalco, ICICI Bank, Infosys, L&T, Reliance Energy, Satyam Computers, SBI, Tata Power, Tisco and Wipro. The Sensex  was dragged down by ACC, Bajaj Auto, Bharti Tele, Dr Reddy, Grasim, Guj Amb Cem, HDFC Bank, HDFC, Hero Honda, ITC Ltd, MTNL, ONGC, Ranbaxy, Reliance Inds, Telco and Zee Telefilms. The rupee ended the week at 45.96 levels ( 00.30 ) against  the US $.

Top I Derivatives guide I Likely triggers I Technicals I Reco's I

The markets are likely to remain influenced by the monsoons and the crude oil prices in the international markets. The turnover tax tax issue is likely to be resolved within the next 1 session and will be factored into the markets. The earnings season will also play a part in the trend determination in the coming week. The markets have rallied insignificantly, and the volumes have been weak. However, the abstinence of jobbers and day traders was going to have a natural impact on volumes. The FII investments have been negative in this week and they have sold equities worth Rs 128 crs on July 15, which is a worrying factor for the bulls. The F&O indicators are pointing towards a build up of long positions in the futures segment which is a heartening indicator. The technology sector is likely to keep the markets bouyant as the weightage is high in the indices. The TCS ipo is likely to see some selling on the frontline technology counters at higher levels as the institutional investors are likely to re-shuffle resources for investing in the IPO. Tata group companies are likely to remain in the limelight as their investments in TCS will unlock cash value in the IPO. The weak Indian Rupee will mean a buzz in the export oriented companies. 

The overseas markets have been subdued on earnings worries and the forthcoming elections in the USA. We feel, there will be selling at higher levels.

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

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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