Wednesday 6 February 2008

Sensex dn 523.6 pts at 18139.5; Nifty dn 161.3 pts at 5322

Markets ended deep in the red in line with Asian markets. Selling across Asian markets after services sector data contacted to most in last five years, reinforcing chances of possible recession in U.S. Sensex ended down 523.6 pts at 18139.5; Nifty ends down 161.3 pts at 5322.5.

CNX Midcap Index was down 1.67%, BSE Small-cap Index was down 0.52%. All BSE Sectoral Indices was end in the red. IT sector see profit booking after stocks recovered around 30-40% from their lows BSE IT Index was down 5.6%; Satyam, Wipro was down over 6.5%, Infy was down 6.2%, TCS was down 5% BSE Metal Index was down 3.6%; Nalco was down 5.8%, Sterlite was down 5.5%, Hindalco was down 5.4%, SAIL was down 4.86% Index Gainers; GAIIL was up 3.4%, REL was up 1.5%, R Comm was up 0.75% Fertilizer stocks gain the most in midcap stocks on pre-budget rumors of tax sops. Deepak Fert was up 20%, Nag Fert was up 12.8%, Chambal Fert was up 8.8%, GSFC was up 6%. Other Non-Index gainers; Technocraft was up 20%, IL&FS Investsmart was up 17.3%, WWIL was up 8.5%. NSE Advacnce Decline at 1:2. Total market turnover at Rs 62441 cr Vs Rs 48,740 cr on Tuesday. Nifty futures turnover up around 60% at Rs 16327 cr Vs Rs 9900 cr on Tuesday.

F&O Snapshot
Nifty futures discount widens from 15 points to 40 points at day end. Nifty futures added 38.6 lakh shares in Open Interest.There was Aggressive shorts seen in the Nifty some hedged positions seen. Selected stock futures had seen day end long buildup positions. Net addition in Open Interest were seen in Stock Futures. Large Cap IT, Realty, Metal stocks witnessed short buildup positions.

Star Performers
Nagarjuna Fertilizer was up 12% adding 16 lakh shares, chambal Fertilizer was up 7.5% sheds 4.24 lakh shares. RNRL up 4% adding 35.6 lakh shares, Oswal Chem was up 4% adding 1.73 lakh shares, Neyveli Lignite was up 3.5% sheds 3.03 lakh shares,Arvind Mills was up 3.5% adding 3.95 lakh shares, IFCI was up 2.8% adding 20.8 lakh shares.

Fresh Longs/Short positions, short Covering & Long Unwinding
Fresh Long position was seen in Mid Cap stocks like JP Hydro, Nagarjuna Fertilizer, IFCI, Ispat, TTML, Orchid Chem, Ashok Ley, Reliance Pack, REL, RNRL.Fresh Short position was seen in IT stocs like Wipro, Satyam Comp, Infosys. Metal stocks like Nalco, SAIL, Hindalco, Misc: stoc Unitech, GMR Infra, Reliance Capital, Bharti Airtel, BHEL Suzlon, JP Hydro.Short Covering was seen in Misc stocks like Chambal Fertilizer, MRPL, Petronet LNG, Neyveli Lignite.Long Unwinding position were seen on stocks like Balrampur Chini, IDBI, India Cem, HPCL, Sydicate Bank, Andhra Bank, IndusInd Bank.

Global Cues
Asian markets ended deep in red after services sector data contacted to most in last five years, reinforcing chances of possible recession in U.S. Shanghai, Taiwan, Kospi were closed on account for Chinese Lunar New Year, Hang Seng & Singapore market will close early today. Asian markets fell on back of U.S. cues; Hang Seng down over 5%, Nikkei down 4%, Straits Times down 3.4%, Richmond Fed President Lacker acknowledged ISM Services report and mentioned that it could lead to possible recession.

Fed Fund Futures
Pricing in around 80% probability Vs 68% on Monday of 50 bps cut on Mar 18. Reuters report said that Merrill Lynch sees a strong chance of another inter-meeting rate cut by the FOMC due to the weak ISM Services reading.

Global News
Oppenheimer downgraded Goldman Sachs to Perform from Outperform. Fitch to again review MBIA’s AAA rating after being affirmed with a stable outlook. BHP Billiton raised its hostile offer for Rio Tinto by 13% to $147.4 bn.

Data To Watch
Q4 productivity reading Measures the growth of labor efficiency in producing the economy's goods and services Weekly energy inventory statistics.