The key benchmark indices surged, snapping six-day slide, on firm world stocks. The market shrugged off disappointing industrial production data for November 2010. Index heavyweight Reliance Industries (RIL) jumped. Infosys trading firm on the eve of Q3 December 2010 results on Thursday, 13 January 2011.
The BSE 30-share Sensex was up 337.76 points or 1.76% to 19,534.10. The Sensex jumped 378.29 points at the day's high of 19,574.63 in late trade. The index lost 147.78 points at the day's low of 19,048.56 in early afternoon trade.
The S&P CNX Nifty was up 109.15 points or 1.9% at 5,863.25.
The market breadth was strong. On BSE, 1861 shares advanced while 1067 shares declined and a total of 90 shares remained unchanged. Among the 30-member Sensex pack, 22 advanced while the rest declined.
BSE clocked turnover of Rs 3448 crore, higher than Rs 3416.25 crore on Tuesday, 11 January 2011.
The BSE Mid-Cap index rose 1.68% and BSE Small-Cap index gained 1.42%. Both these indices underperformed the Sensex.
Banking, consumer durables, realty and metal stocks led the rally. Except the BSE Capital Goods index, all the other sectoral indices on BSE were in the green.
Intraday volatility was high. NSE's volatility index declined for the second day in a row. The index eased to 21.41% from Tuesday's (11 January 2011) close of 22.33%.
Government data released today, 12 January 2011, showed industrial output rose at 2.7% in November 2010 as against a revised 11.30% growth in October 2010, as growth in the manufacturing output slowed sharply.
Finance Minister Pranab Mukherjee today, 12 January 2011, said that the Government is looking to take corrective measures to improve industrial output. Mr. Mukherjee also said he expects the Industrial Output numbers to improve in the next four months.
The Securities and Exchange Board of India (Sebi) on Tuesday, 11 January 2011, decided to permit stock exchanges to introduce derivative contracts (futures and options) on foreign stock indices in the equity derivatives segment.
The Government will announce inflation data for the month of December 2010 on Friday, 14 January 2011. The benchmark wholesale-price inflation cooled to near a one-year low of 7.48% in November 2010. A surge in food inflation in late December 2010 has rekindled fears of interest rate hike by the Reserve Bank of India (RBI) at a quarterly policy review on 25 January 2011. Food inflation accelerated to the highest level in more than a year in late December 2010.
Corporate earnings for Q3 December 2010, which will start trickling this week, will set the direction for the stock market in the near term. Analysts see corporate profit margins to be under pressure in the coming months due to higher commodity prices, rising cost of debt, surging wages and increased competitive intensity across sectors. IT bellwether Infosys kickstarts the earnings reporting season on 13 January 2011.
In his first pre-Budget interaction with industrialists on Tuesday, 11 January 2011, Mukherjee hinted that indirect taxes won't be increased, considering high prices of commodities.
Meanwhile, bankers on Tuesday, 11 January 2011, asked the RBI to further ease the liquidity situation in the banking system with a cut in the cash reserve ratio (CRR) and/or the statutory liquidity ratio (SLR). Banks highlighted a mismatch between slower deposit growth and faster credit growth as becoming a serious issue for them.
VIEWS FROM SOME BROKING HOUSES:
BONANZA PORTFOLIO:
"The sentiment has improved and market has a positive bias. Market has a support around 5700 level".
ANGEL BROKING HOUSE:
"Markets for the second consecutive trading session traded with extreme choppiness but smartly recovered from days low to close in green. In coming trading session if indices trade convincingly above 19600/5880 levels then they are likely to test 19750-19870/5920-5960 levels. On the downside, 19350-19280/5800-5780 levels may act as supports for the day".
FAIRWEALTH SECURITIES:
In the next session, Nifty is expected to attract good buying with 5790 and 5750. However, 5910 and 5959 may act as resistance levels for Nifty. Traders are suggested to buy at dips keeping in view the given support levels. Banking and Metals may attract more buying while Pharma and FMCG may face selling pressure".
FOR DAILY CALL FROM DIFFERENT BROKING HOUSES KINDLY READ MARKET OUTLOOK POSTED EARLIER.
FOR TODAY: FOR INTRADAY USE 5850-55 (NIFTY FUTURE) AS TURNING POINT. BELOW 5850, IF NIFTY TRADED FOR 5-10 MINS WITH VOLUME, GO FOR SHORT AND IF ABOVE 5850M NIFTY TRADED FOR 5-10 MINS WITH VOLUME, GO LONG.
MORE INTERESTING: Fresh long built up was seen in Nifty JAN 6000 Call which add OI to the tune of 5,63,200 (8.39%) aggregating to 72,76,950 while long liquidation was seen in 5800 Call which shed OI to the tune of -7,07,500 (-14.93%) aggregating to 40,31,100. Similarly fresh short built up was seen in Nifty JAN 5700 Put which add OI to the tune of 7,16,850 (10.51%) aggregating to 75,40,450 as well as in Nifty 5600 Put which add OI to the tune of 14,72,300 (24.31%) aggregating to 75,29,550.
NOTE: WATCH REGULARLY FOR RAILWAY BUDGET PICKS 2011
MORE INTERESTING: Fresh long built up was seen in Nifty JAN 6000 Call which add OI to the tune of 5,63,200 (8.39%) aggregating to 72,76,950 while long liquidation was seen in 5800 Call which shed OI to the tune of -7,07,500 (-14.93%) aggregating to 40,31,100. Similarly fresh short built up was seen in Nifty JAN 5700 Put which add OI to the tune of 7,16,850 (10.51%) aggregating to 75,40,450 as well as in Nifty 5600 Put which add OI to the tune of 14,72,300 (24.31%) aggregating to 75,29,550.
NOTE: WATCH REGULARLY FOR RAILWAY BUDGET PICKS 2011
