BSE / NSE Weekly report 12 Nov 2010

Global jitters returned to haunt investors on Dalal Street especially towards the end of the week. A sudden sell off in South Korea’s Kospi spooked investors in India on Thursday. Interest rate hike fears sent Chinese and other global markets into a tizzy on Friday. Fresh concerns over the deteriorating fiscal situation in the debt-strapped eurozone added to the list of worries as did a rising dollar. Indian indices witnessed further selling pressure after the September IIP data came in much below expectations. Finally, the NSE Nifty lost 3.8% and the BSE Sensex fell 4%.

Sensex intra-week high of 21,075 and low of 20,108

Nifty intra-week high of 6,336 and low of 6,057

Sensex top gainers: The prominent top gainers in the Sensex were Reliance Power (up 11.2%) and Ambuja Cements (up 4.5%).

Sensex top Losers: The top losers in the Sensex were SBI (down 13.3%), DLF (down 8.3%), Bharti Airtel (down 7.3%), Cipla (down 6.6%) and Ranbaxy Labs (down 5.9%).

The BSE IT Index (down 2.5%):The top losers in the IT sector were Mphasis (down 6.3%), OFSS (down 4.7%), Sasken Communication (down 4.4%), Patni Computer (down 4%) and Wipro (down 2.9%).

The top gainers were Financial Tech (up 7.6%) and Mahindra Satyam (up 2.6%).

The BSE Consumer Index: The top losers in the Consumer Durables were Videocon Industries (down 4%), Mirc Electronics (down 3.4%) and Blue Star (down 3.3%).

The top gainers were Titan Inds (up 3.1%), Su-Raj Diamonds (up 2.9%) and Whirlpool (up 1.5%).

The BSE Healthcare Index (down 1.8%):The top losers in the Pharma were Cipla (down 6.6%), Ranbaxy Labs (down 5.9%), Glenmark Pharma (down 4.8%), Ipca Labs (down 3.2%) and Aurobindo Pharma (down 2.7%).

The top gainers were Marksans Pharma (up 33.3%), Morepen Labs (up 12.6%), Natco Pharma (up 11.9%), Cadila Healthcare (up 6.7%) and Lupin (up 4.2%).

The BSE Banking Index (down 6%):The top losers in the banking space were SBI (down 13.3%), Federal Bank (down 11.3%), Yes Bank (down 7.4%), Indian Overseas Bank (down 7%) and Oriental Bank Of Commerce (down 6%).

Canara Bank gained 3.3% during the week.

The BSE Auto Index (down 2%):The top losers in the auto space were Eicher Motors (down 9.5%), Ashok Leyland (down 5.9%), Maruti Suzuki (down 3.8%), M&M (down 2.2%) and Bajaj Auto (down 2%).

The top gainers were Hindustan Motors (up 5.8%) and Tata Motors (up 0.1%).

The BSE Oil & Gas Index (down 4%):The top losers in the oil & gas space were Gujarat NRE Coke (down 11.3%), Essar Oil (down 10.5%), HPCL (down 7%), MRPL (down 5.9%) and ONGC (down 5.4%).

Great Offshore gained 0.3% during the week.

The BSE Capital Goods Index (down 4%):The top losers in the Capital Goods were BHEL (down 5.9%), Carborundum Univ (down 5.8%), Thermax (down 5.6%), Gammon India (down 4.8%) and HEG (down 4.6%).

The top gainers were Elgi Equipments (up 1%), Esab India (up 0.4%) and Praj Industries (up 0.3%).

The Cement Sector: The top losers in the cement sector were Madras Cements (down 6.6%), Birla Corp (down 5.6%), India Cements (down 5%), Grasim Inds (down 4.5%) and Prism Cement (down 3.4%).

The top gainers were Kakatiya Cement (up 2.9%) and JK Cements (up 0.2%).

The Telecom Sector: The top losers in the telecom space were Bharti Airtel (down 7.3%), MTNL (down 7%), RCom (down 6.4%), TTML (down 5.3%) and Gemini Comm (down 4.9%).

The top gainers were Himachal Futuristic (up 45.4%), WWIL (up 4.6%), Shyam Telecom (up 3.3%) and Idea Cellular (up 3%).

The Realty Sector (down 6.5%):The top losers in the Realty space were Sobha Developers (down 11%), Unitech (down 9.6%), DLF (down 8.3%), HDIL (down 6%) and Akruti City (down 4.5%).

The top gainers were Omaxe (up 2%), Ansal Props (up 1.2%) and Mahindra Lifespace (up 0.2%).

The Metals sector (down 3.1%):The top losers in the metals sector were Jindal Steel (down 4%), Jindal Stainless (down 3.9%), Bhushan Steel (down 3.7%), Tata Metaliks (down 2.9%) and Tata Steel (down 2.7%).

The top gainers were Bhuwalka Steel (up 2%) and Lloyds Metals (up 1.8%).

Source : IIFL

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

No.11 AG Plaza

3rd Cross Kamanahalli

BANGALORE 560084

For Free Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor

BSE Weekly Review 5th Nov 2010

It was a pre-Diwali rally for the domestic bourses as it appreciated 294.75 points to close at 6312.45, well above all the major resistance level. It scaled record closing highs during the special 45-minute Muhurat trading session held on 5 November 2010, to mark the beginning of the Samvat Year 2067. The derivative data on 5th November is not taken for analysis as the trading volume on this day was very thin. The earlier major resistance level of 6200 level has turned to be a major support now as evident from aggressive put writing of 6300 and up strikes.

Strong opening of the Coal India IPO resulted in the profit coming back to the market while the Foreign Institutional Investor's (FII's) continued mopping up Indian equities. Strong flow from the FII is expected to continue after QE2 (Quantitative easing- 2) by the FED as new money supply will venture out for higher yield asset class in the emerging markets. Although there are concerns of a bubble being generated in the emerging markets in such a scenario, the structural strength of the Indian economy will place it in good stead going ahead. There was strong addition of open interest (OI) across the Futures and Options (F&O) segments and the nifty November series closed at a premium to the underlying on all the trading days during the week ended 5th November 2010.

The nifty November series added 2.7 lakh shares in OI to take its total OI to 2.51 crore shares. The trend was aggressively covering of the short positions while fresh longs were being generated in both the nifty as well as the stock futures. Even in the nifty and the stock option front the bearish positions were covered while fresh bullish positions were created. For e.g. the in-the-money nifty calls written earlier were covered while fresh out-of-the-money calls were bought. Also nifty in-the-money puts witnessed aggressive writing.

The average volume in the F&O segment was Rs 77689 crore, and the nifty November future on Friday closed at 12.60 points premium to the underlying on this day at 6325.05. The index put-call ratio on Friday increased to 1.38 as compared to 1.10 the previous day, while the stock put-call ratio fell to 0.22. The market put-call ratio increased significantly on Friday to 1.27 as compared to 1.01 on the previous day.

The market-wide OI on Friday increased by 4.84 crore shares to 277.89 crore shares as compared to the previous trading day. Most of this OI addition happened in the stock futures and option segment. As compared to the end of the previous week, the market added 27.67 crore shares in OI

Most active Nifty options (November 2010 series)
OI
Call
Nifty 6200 3801300
Nifty 6300 4346850
Nifty 6400 4497200
Nifty 6500 6153200

Put
Nifty 6100 5518500
Nifty 6200 3800900
Nifty 6300 2298450
Nifty 6400 282100
Source: NSE


On 4th November OI in the November nifty till 6300 strikes were aggressively covered while fresh calls were bought at 6400 and up strikes. For e.g. the 6200 and 6300 strike call option of the November series shed 10.04 lakh shares and 3.87 lakh shares in OI to take their respective OI to 38.01 lakh shares and 43.47 lakh shares respectively. The 6400 and 6500 strike call added 5.60 lakh shares and 9.89 lakh shares in OI while the 6600 strike added 2.66 lakh shares in OI. Similarly the 6200 and 6300 put strike of the November series added 9.35 lakh shares and 14.17 lakh shares in OI due to aggressive writing to take their respective OI to 38 lakh shares and 22.98 lakh shares. (See the most active nifty option table) Top 10 Open Interest (OI) gainers in November series stock futures on 4th November 2010

Scrip Name OI* Change* % Change
ESCORTS 750000 311000 71
HINDOILEXP 2319000 803000 53
TATAMTRDVR 1069250 366000 52
OIL 34750 11750 51
MAX 680000 196000 40
CENTRALBK 2078000 598000 40
NMDC 2838000 649000 30
DCB 5612000 916000 20
IRB 639000 103000 19
STRTECH 1344000 208000 18
* No of shares
Source: NSE


Top 10 Open Interest (OI) losers in November series stock futures on 4th November 2010
Scrip Name OI* Change* % Change
GMDCLTD 2456000 -554000 -18
GESHIP 1753000 -354000 -17
HDFC 5633750 -894375 -14
RNRL 25608000 -3568000 -12
ONGC 2434500 -326250 -12
TATACHEM 2878000 -318000 -10
PFC 946000 -83000 -8
PETRONET 7402000 -628000 -8
HEXAWARE 2300000 -160000 -7
NAGARFERT 31056000 -2008000 -6
* No of shares
Source: NSE

Prominent action in the 6200 strike call option and the 6300 strike put option indicate strong support at these levels. These very levels were strong resistance during the end of the previous week. Action in the global market going ahead especially in the US will be closely watched while the US President Mr. Barak Obama's India visit will also be watched by the market to take any strategic mileage from it. Continued strong fund flow will remain the key.

Source :CapitalMarket

Bought to you by

Ingenious Investor
Equity Research Division

Ravina Consulting
No.11 AG Plaza
3rd Cross Kamanahalli
BANGALORE 560084

For Free Stock Advise + Ideas
sowmya@ravinaconsulting.com
Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com
Follow us - www.twitter.com/smartinvestor