makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 27.08.2010 FRIDAY

Friday, August 27, 2010

MARKET ENDED 27.08.2010 FRIDAY

TODAY IN END SESSION

BUT INDEX MOVERS IN BLOOD BATH MARKET

MARKET ENDED 27.08.2010 FRIDAY

SENSEX 17998.41 -227.94

NIFTY 5408.70 -69.20

NASDAQ 2141.54 +17.78

DJIA 10060.06 +19.61

RS/$ 46.79 -0.14

Indian equities ended deep in the red on Friday, as risk-averse investors booked profits ahead of US GDP data. All the sector indices, except oil & gas ended in the red. Shares logged their biggest weekly loss in three months.

Market opened on a subdued note trailing weak Asian peers and turned lacklustre due to lack of direction. Negative opening of the European markets and decline in the US futures saw benchmarks slipping below psychological levels.

Bombay Stock Exchange’s Sensex ended at 17,998.41, down 227.94 points or 1.25 per cent. The index touched intraday high of 18,248.11 and low of 17,944.16.

National Stock Exchange’s Nifty closed at 5408.70 down 69.20 points or 1.26 per cent. The index touched a low of 5391.95 and high of 5495.20 in today’s trade.
If Nifty future falls below medium-term support of 5350 levels, then selling pressure may intensify and we may see 5300-5250 levels in coming days. On the upside, if it sustains above 5480 levels then only further upmove can be seen.
Looking at the options data, 5400 strike price has seen maximum build up in open interest, once it sustains below 5400 levels then unwinding and long liquidation may push the market to lower levels.
On the upside, 5500 strike price calls has been fresh writing which would work as a strong immediate resistance for the market.
Market is tumbling from recent 52-week high levels and open interest positions of Nifty future has been built up heavily, hence a cautious approach is advised to market participants.
India volatility index (India VIX) is also giving cautious signal. It has bottomed out and stood at 19.63 levels at the end of the session. Now any rise in VIX from these levels may put pressure on the market.
BSE Midcap Index was down 0.95 per cent and BSE Smallcap Index fell by 1.30 per cent.
Amongst the sectors, BSE Realty Index was down 2.67 per cent, BSE Bankex moved lower by 2.07 per cent and BSE IT Index slipped 1.84 per cent. BSE Oil&Gas Index moved 0.36 per cent higher.
Shares of IT companies reacted negatively after government proposed a hike in the MAT on book profits to 20% from the prevailing 18% in the proposed new Direct Taxes Code bill.

Losers included DLF (-3.63%), Hero Honda (-3.46%), Axis Bank (-3.42%), HCL Tech (-3.36%) and PNB (-3.31%).

GAIL (3.46%), ONGC (1.95%), Tata Steel (1.42%), BPCL (1.20%) and Sterlite Industries (0.40%) were amongst the index gainers.
ONGC announced new oil discovery in the western onshore basin located in the Ahmedabad-Ankleshwar belt. This block was won under the sixth round of competitive bidding (NELP-VI).
GAIL is planning to set up gas-based power plants in four stares of Maharashtra, Gujarat, Madhya Pradesh and Uttar Pradesh, say reports.
Tata Power is planning to acquire 50% stake in InterGen NV from GMR Infrastructure. The deal is likely to be announced in next two month. At least four companies are in race to acquire stake in InterGen NV.

Market breadth was negative on the NSE with 2215 losers against 1028 gainers.