MARKET ENDED 29.12.2009 GOOD TUESDAY

WE ARE TODAYS NIFY BIG GAINERS

SENSEX 17401.56 +40.95
NIFTY 5187.95 +9.55
NASDAQ 2176.05 +6.87
DJIA 10426.31 -11.11
RS/$ 46.25 -0.16
Equity benchmarks ended in the positive terrain on Tuesday but off day’s highs ahead of December F&O expiry later this week. Metals, Power and banks provided support to the indices while healthcare and IT stocks ended lower. Indices opened on a positive note and turned range bound with a positive bias.

Soon after trade began National Stock Exchange’s Nifty hit 52-week high and crossed psychological resistance level of 5200. However, in the last half hour the indices pared the gains and ended only marginally higher. On the other hand, the broader indices outperformed the benchmarks. We are in expiry week and participants are expecting Santa Claus rally between Christmas and New Year. We think otherwise. At 5200 in December we are on the higher side of the range. There are lot of writers which are still holding their short 5200 call positions and of late 5200 put has also added significant open interest which is more of buying than writing as IV’s were far too low for sellers to make any meaningful returns in short timeframe. Just like breaching of 5000 support by 50-odd points should not have altered positional traders view significantly, on similar basis, 20-30 points move above 5200 levels should not bring exuberance among participants. For January, so far the range which has emerged is not very different from December on the lower side i.e. 4900-5000 may act as support zone. On higher side, 5200 still appears to be resistance, even if this resistance is breached we may not see run away rally.

National Stock Exchange’s Nifty closed at 5187.85, up 9.45 points or 0.18 per cent. The index hit 52 week high of 5214.60 and touched intraday low of 5175.85. Bombay Stock Exchange’s Sensex shied away from hitting new 52-week high and ended at 17401.56, up 40.95 points or 0.24 per cent. The 30-share index touched a high 17486.05 and low of 17372.63. BSE Madcap Index was up 0.50 per cent and BSE Small cap Index moved 1.16 per cent higher. Amongst the sect oral indices, BSE Metal Index was up 0.92 per cent, BSE Power Index moved 0.66 per cent higher and BSE Bankex moved 0.37 per cent up.
Reliance Power (4.80%), Reliance Infrastructure (3.21%), Suzlon Energy (2.66%), Hindalco Industries (2.43%) and Ambuja Cement (1.91%) were amongst the top Nifty gainers. One of the four 300 MW-capacity units of a thermal power plant developed by Reliance Power has been commissioned in Rosa. The second 300 MW-unit will be commissioned by the end of January, and will be followed by the other two 300 MW-units by March 2012. The 1,200-MW plant at Roja, is located about 175 km from Uttar Pradesh capital Lucknow. Cipla (-3.47%), Sun Pharma (-2.38%), DLF (-1.69%), Wipro (-1.64%) and ONGC (-1.37%) were amongst the top losers. Market breadth was positive on the BSE with 1859 advances and 964 declines.

European markets were in the green led by commodities and the US markets were also expected to open higher. At 4:20 pm IST, Dow Jones futures was up 0.11 per cent, S&P 500 moved 0.15 per cent higher and NASDAQ 100 gained 0.13 per cent.

Regards,
RAKESH MAKIN
Chugh securities Pvt Ltd
+91 9915684997, 9041667797
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
Email:rakeshmakin@yahoo.com
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