makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 19.05.2011 THURSDAY

WERE TODAY'S NIFTY GAINERS

MARKET ENDED 19.05.2010 WEDNESDAY

SENSEX 18141.40 +55.20

NIFTY 5428.10 +07.50

NASDAQ 2141.54 +17.78

UPDATEDTIME 09.28 PM 19 MAY 2011

Benchmarks ended three-day losing streak and closed on a positive note aided by gains in index heavy-weights like Larsen & Toubro, Reliance Industries and ONGC.

Indices turned choppy after opening modestly higher due to lack of participation from investors in absence of cues to direct the market. Easing food inflation to 7.47 per cent for the week ended May 7 against 7.70 per cent provided some consolation to investors who are worried of another rate hike due to possible hike in diesel prices.

According to reports, petrol will be costlier by 40 paisa again after the recent Rs 5 per liter hike and diesel will be dearer by 12 paisa a liter as the oil ministry has decided to raise the commission for petrol pump owners. The EGoM is expected to meet next week to discuss oil price issue and subsidy sharing mechanism.

Better than expected quarterly results from Larsen & Toubro also provided some support to benchmarks later in the day. The company reported standalone net profit of Rs 1686.21 crores for the quarter ended March 2011 against Rs 1364.93 crores in the same period a year ago. Total income stood at Rs 15384.21 crores for year as against Rs 13583.25 crores last fiscal.

Bombay Stock Exchange's Sensex ended at 18,141.40, up 55.20 points or 0.31 per cent. The 30-share index hit a high of 18198.45 and low of 18057.82 in trade today.

National Stock Exchange's Nifty closed at 5428.10, up 7.50 points or 0.14 per cent. The broader index touched a high of 5452.60 and low of 5411.25 intraday.

Nifty future managed to hold important immediate support of 5400 levels but failed to move above it. Put call ratio is near to its yearly low levels, as heavy call writing was seen at all higher strikes. On option front, maximum Call OI is shifted to 5500 strike which is likely to act as a very strong resistance for the current series. On put side maximum OI is intact at 5400 strike and likely to act as a strong base as of now.

If Nifty sustains below 5400 levels then further selling pressure may take it towards 5350-5300 or even lower levels. On the upside, if it sustains above 5500 levels, then only upmove may be seen towards 5550-5580.

We are strongly advising to hedge positions by buying respective put of stocks or index if Nifty future sustains below 5400 levels.

BSE Midcap Index was down 0.70 per cent and BSE Smallcap Index moved 0.54 per cent lower.

Amongst the sectoral indices, BSE Capital Goods Index gained 2.82 per cent, BSE Oil&gas Index moved 1.16 per cent higher and BSE IT Index advanced 0.34 per cent. BSE Realty Index was down 2.87 per cent, BSE Metal Index declined 0.98 per cent and BSE Power Index slipped 0.85 per cent.

L&T (6.77%), IDFC (1.90%), Reliance Industries (1.82%), ONGC (1.64%) and Siemens (1.62%) were amongst the major Nifty gainers.

DLF (-3.84%), Hindalco (-3.33%), Reliance Communications (-2.97%), Hero Honda (-2.8%) and Tata Power (-2.76%) were the major losers.

Market breadth was negative on the NSE with 1702 losers as compared to 1111 gainers.