MARKET VIEW 06.11.2009

MOST ACTIVE

Benchmarks continued their winning streak for the third straight day and ended a volatile session in the positive terrain Friday. However, second rung stocks were in the thick of trade and outperformed the main indices. Indices opened higher as sentiments were bullish on government’s plans to divest stake in public sector units. This was coupled with positive news flows from the US jobless claims which declined. But the market turned volatile as a tug-of-war resumed between the bears and bulls. In the end bulls won the fight and helped indices end above psychological supports. Bombay Stock Exchange’s Sensex closed at 16,158.28, up 94.38 points or 0.59 per cent from Thursday. The index touched an intra-day high of 16283.86 and low of 16075.19. National Stock Exchange’s Nifty ended at 4796.15, up 30.6 points or 0.64 per cent. The broader index touched a low of 4764.85 and high of 4836.20 in today’s trade. “Nifty has a stiff resistance around 4850 level (50% retracement level), a breach above this level can push the index to 20 DMA level of 4931. However on the downside, support is around 4730 & 4700. Sector specific, pharma, auto and technology look very strong. In pharma, Ranbaxy, Dr.Reddy’s Laboratories are attractive while Tata Motors & M&M are best bets in auto space. We are bullish on Wipro and Infosys in technology space. The BSE Midcap Index was up 2.27 per cent and BSE Smallcap Index moved 2.24 per cent higher. Amongst the sectoral indices, BSE PSU Index surged 3.91 per cent, BSE Realty Index was up 2.81 per cent, BSE Metal Index moved 2.03 per cent higher and BSE Bankex gained 1.75 per cent. BSE FMCG Index was up 1.75 per cent. Jaiprakash Associates (4.76%), Tata Steel (3.08%), State Bank of India (3.06%), Sterlite Industries (2.21%) and Larsen & Toubro (2.17%) were amongst the Sensex gainers. Losers included, Tata Power (-3.84%), Hindustan Unilever (-2.12%), Hero Honda (-1.98%), ITC (-1.53%) and Tata Motors (-1.06%). Market breadth was positive on the BSE with 1,944 advances and 780 declines