Weekly market view. June 26, 2004
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June 26, 2004 |
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The value of shares advancing was Rs. 14,378 crores ( previous week Rs. 11,917 crores ) and the value of shares declining was Rs. 13,538 crores ( previous week Rs. 12,799 crores). This indicates a broader selling bias. The total traded volume on the BSE was Rs. 8,373 Crores ( previous week Rs. 7,367 Crores). The total traded volume on the NSE was Rs. 19,781 Crores ( previous week Rs. 17,399 Crores).
The week saw a weakness
continuing to pervade the sentiments as the players preferred to abstain
from the buying process. But for the upmove in the last two sessions, the
overall fall would have been significant. The market breadth continued to
remain negative and the traded volumes improved marginally - refer table
above. Technology stocks saved the week from further blushes and stemmed
the bearish tide. The Sensex was boosted by ACC,
BHEL, BSES, Grasim, Guj Amb Cem, Hero Honda, Hind Lever, Hindalco, Infosys,
L&T, Satyam Computers, Tisco and Wipro . The Sensex was
dragged down by Bajaj Auto, Bharati Tele, Cipla, Dr
Reddy, HDFC Bank, HDFC, HPCL, ICICI Bank, ITC, MTNL, ONGC, Ranbaxy,
Reliance Inds, SBI, Telco and Tata Power . The rupee ended the
week at 45.84
levels ( Top I Derivatives guide I Likely triggers I Technicals I Reco's I The markets are likely to witness a further improvement in sentiments on the back of previous week's momentum. The buying seen on Thursday and Friday last week was accompanied by a sharp surge in traded volumes and that is a sign of optimism in the absolute near term. The suppressed trading volumes have been a bone of contention for the market sentiments since the last few months. The international crude oil prices have come off their recent highs and the US markets have more or less stabilised after the initial nervousness on interest rate fears. The expiry of the June F&O series has been fairly uneventful, though the outstandings have been shaved off substantially. That makes the markets still shallow and fickle. The coming week is crucial for the markets as the US interest rate decisions, oil prices and the pre-budget movements in the indices will see a sense of direction returning to the markets. Of the entire transacted volumes in the previous week, only 21 % have been on positive market breadth days, the remaining on downtick sessions. The margins in the F&O series have been coming down gradually as we had advocated accurately in the previous week and therefore helped the bulls sustain / add to bullish positions. Click here to view the previous weeks report The overseas markets have been steady and are unlikely to have a significant influence on the domestic sentiments. The Nasdaq has been firm and is likely to see domestic software stocks remaining strong. 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
For stock specific recommendations, refer to our special edition "Flavours of the week". Click here to to view the previous editions of Flavours of the week. Your feedback is important ! Please click here to let us know your views. Click here to inform a friend about this page on our website.
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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13.60
39Your feedback is important ! Please click here to let us know your views. Click here to inform a friend about this page on our website.