Weekly market view
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May 01, 2004 |
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The BSE & NSE combined weekly value of shares advancing was Rs. 11,415 crores ( previous week Rs 20,010 crs ) and the value of shares declining was Rs. 19,216 crores ( previous week Rs 14,710 crs ). This indicates a broader selling bias. The total traded volume on the BSE was Rs. 9,042 Crores ( previous week Rs 11,063 crs ). The total traded volume on the NSE was Rs. 21,633 Crores ( previous week Rs 25,097 crs ). These figures are not really comparable as this week was shorter due to a holiday.
The markets have seen a
major fall this week as the exit polls dealt a big blow to the sentiments.
The bulls are now clearly on the defensive and the undertone is brittle.
The traded volumes were steady and the market breadth was negative. The
expiry of the April series of the derivatives contracts also had a part to
play in the unwinding of long positions. The Sensex was boosted by Bajaj
Auto, Cipla, Grasim and Ranbaxy . The Sensex was
dragged down by ACC, Bharati Tele, BHEL, BSES, Dr
Reddy, Guj Amb Cem, HDFC Bank, HDFC, Hero Honda, Hind Lever, HPCL,
Hindalco, ICICI Bank, Infosys, ITC, L&T, MTNL, ONGC, Reliance, Satyam
Computers, SBI, Telco, Tata Power, Tisco, Wipro and Zee
Telefilms . The rupee ended the week at 44.49
levels ( Top I Derivatives guide I Likely triggers I Technicals I Reco's I The markets are governed totally by the election news and only after the exit polls are announced on the 5 th of May 2004, will a clear sense of direction emerge. Till then, expect the undertone to remain nervous and brittle. Earnings numbers will play a minor part in the investment process as the market players are likely to take limited exposure in the present scenario. The FII sales figures on April 29 to the tune of Rs 332 crs is not likely to be taken well by market players on Monday. The F&O figures for this week show a sharp fall in the outstanding long positions. This is a routine phenomena in the expiry week. The rising US $ will cause inflationary pressures on the economy and higher oil prices, which is worrying the markets. The expectations of interest rate hike in the US is likely to have a short term bearish impact on markets. Watching these developments will give vital clues to the market directions. We are issuing a special report pertaining to your plan of action post election results. Please ensure acting upon that vital report in your coming weeks plans. The overseas markets have been exceptionally weak and the outlook is cautious on that front. Overall, we re-affirm our previous weeks guidance of selling on advances. Click here to view previous weeks report. 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 please refer to our special edition - "Flavours of the week". Click here to view the previous editions of Flavours of the week. Top I Derivatives guide I Likely triggers I Technicals I Reco's I 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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270.49
4148 Crs
Apr 1 - 29Your feedback is important ! Please click here to let us know your views. Click here to inform a friend about this page on our website.