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Markets Today

 

Markets have rebounded with small rally in today's session after sharp fall seen on Tuesday and ended higher though they were off day's high. Benchmark indices saw some volatility as well ahead of F&O expiry for the month of September.

Buying was seen in metal, banking, oil, power and capital goods stocks. However, technology stocks remained under pressure throughout the day.

The Sensex rose 122.21 points or 0.9%, to settle at 13,692.52. The Nifty had managed to cross 4200 during the session but failed to sustain above that level. It closed at 4161.25, down 34.35 points or 0.83%. Both indices lost 148.29 points and 46.7 points from day's high of 13,840.81 and 4207.95, respectively.

In the F&O segment, rollovers were low; short rollovers failed to pick up. Nifty rollover was at 43.2% versus 56% and marketwide rollover stood at 50.4% versus 56%. Nifty October futures ended at a 31-point premium and September Futures ended at 28.75-point premium. Fresh long build up was seen in metals stocks; Sterlite October futures added 17 lakh shares in Open Interest. Fresh long build up was also seen in banks.

Among the frontliners, Sterlite Inds rose 8.26%, HDFC Bank 3.18%, Tata Steel 2.77%, Reliance Infra 2.22%, M&M 2.17% and NALCO 5.61%.

 

Global Cues

Oil prices rallied Wednesday as the market waits to hear from Congress about the proposed $700 bailout plan and for weekly supply data from the government.

Oil climbed $1.24 at $107.85 a barrel. On Tuesday, oil slipped $2.76 to settle at $106.61 a barrel as the market refocused on how the dour economic situation has crimped demand.

Bailout plan: The oil market has been waiting to hear from Congress about a $700 billion proposed bailout plan for beleaguered financial services companies. The debate over the rescue was very heated Tuesday.

The plan could pull oil prices higher, depending on the specific terms of the plan and depending on the economy's reaction to whatever plan is adopted.

If the bailout were passed and served to jumpstart the lethargic economy, the oil market hopes that demand for energy would recover to healthy levels. If the economy recovers and demand for oil recovers, then oil prices jump.

Market Tips

As nuclear deal is around the corner and would be finalized by tomorrow as PM Manmohan Singh is in America for ten day tour of US and France. Since deal is most likely to be done, we maintain buy on power stocks. Some of the one which are eminent are:

1.      NTPC

2.      KSK Energy

3.       BHEL

4.       RPL

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