Profit Nifty

2/12/2007 - 8/12/2007

The Bulls ended the month of November on a positive note led by gains in sensex heavyweights despite some huge volatile movements. Markets recovered from lower levels overcoming F&O expiry jitters and uncertainty over the US subprime tensions. Heavy outflow of FII money during the month too failed to dampen the spirits at Dalal street with Domestic Funds providing to infuse fresh funds into the equity markets. Sensex & Nifty both gained 2.70% for the week by 510 points & 154 points respectively to close at 19393 & 5763.

FII’s continued to be net sellers for most part of the week but turned net buyers on the last day of the week. Cummulative figures for the week in the equity segment were marginally in the negative for apprx Rs 135 crs {incl Friday’s positive figures for Rs. 1088 crs}. The Derivatives segment had net inflows for the week for Rs. 4480 crs. Domestic Institutions continued to support markets in form of buying and were buyers for all 5 trading sessions in the last week totaling to almost Rs. 1500 crs.

Crude prices could not touch the magical $100 mark and crashed to lose more than 10% closing at the week’s lows at $88 mark. Crude price have broken crucial support levels and could gain momentum on the higher side above $94-$95 levels.

WORLD MARKETS

Equity markets all around the Globe were boosted by Fed Reserve comments for further interest rate cuts. Major international markets rallied after sentiment improved on Wall Street. Dow Jones registered its largest percentage gain for the year as US stock rebounded on news of Abu Dhabi govt infusing US7.50bn in Citigroup. Asian as well as European markets rallied with most of them posting weekly gains of over 4% each. {except the Shanghai index which closed lower by 3%}

SECTORAL INDICES

Gains were seen in almost all the sectoral indices on the BSE after most of them had taken a hit in the previous week. Auto stocks found fresh buying support after Crude prices declined almost 10% from the record highs. Banking sector gained on optimism of the Fed Reserve will cut interest rates in its forthcoming meeting. Metals were the biggest gainers for the week. The metal index rose by 6.8% on back of strong buying in Steel stocks and Sterlite Inds.{ stock gained 17% }. IT stocks too found buying support rising by 4% for the week. Cement companies were in the news after they announced a Rs 5-10 per bag increase. Reality stocks gained after the Maharashtra govt abolished the Urban Land Ceiling Act and on Land deals in Mumbai fetching some mind-boggling valuations. Oil refinery stocks recovered sharply from lows to close higher for the week with the help of gains from RPL, Essar Oil, Mrpl & Bongaigoan Refn. Sensex gainers for the week included Bajaj Auto +6%, HDFC +10%, Bhel +5%. ACC & Hindalco were the ones dragging the sensex lower.

MID-CAP ACTION

Both the sectoral indices closed at their highest weekly level with gains over 4% for the week. Mid-caps and small-caps were once again amongst the actions with the infusion of 15 new stocks from the mid-cap space in the F&O segment. All the newly introduced stocks were the top gainers in the mid-cap space. Stocks like Everready, WWIL & DCB gained more than 25% for the week . Mid-cap media stocks & steel stocks were in limelight. Mid-caps have outperformed markets and could continue doing so for the coming months.

Markets may consolidate before reaching new heights. Momentum Positive.

Markets lost almost 1700 points in four trading sessions on back of some heavy selling pressure from the FII’s. This along with negative cues from all around the world had the indices depict some volatile movements and head down south. The indices have been moving in a huge trading range between 20K & 18K and have not been able to breach the all time highs at 20208 mark. There have been strong resilience at 20K mark and buying supports coming in at 18200-18300 mark. Global pressures could ease out in coming days which could lend support to the markets. Technically the levels of 18600 & 5500 are very important levels for the BULLS and a breach below this could spell problems & take the markets lower to 17K & 5200 mark. I strongly feel that the correction from 20K to 18K may have been over and markets would be headed to test the new highs once again. F&O expiry week could bring in volatility, but remain positive.

Source:jaldimoney