22 Jan 2010 Morning Alert

22 Jan 2010  08:50 hrs
Asian Markets :
SGX Nifty : -80(5005)
Hang Seng : -521.04(20341.63)
Nikkei : -315.14(10553.27)
Nifty breaking supports with good volumes, indicates weakness.Now the Nifty has a resistance at 5110 and 5165 levels.Can hold short upto 5020-5000 level and book profits fully in 5200 PE of Jan 2010 month expiry contracts at those(5000-5020) levels which were suggested yesterday in the afternoon. Nifty may take support at the psychological level of 5000. But technically speaking it has a support at 4950 level.One can take a long position at the level of 4950.
Recommendations :
Book profits in Nifty short given after breaching 5238.
Sell : Aban,Abirlanuvo,Acc,Axisbank
But at declinde : Ibrealest,DLF,ITC.
F&O cues:

Total Futures Open Int up by Rs 583 crore
Stock Futures add 70 lakh shares in Open Int
Nifty Calls add 63 lakh shares in Open Int
Nifty Puts add 15.9 lakh shares in Open Int
Nifty PCR at 1.17 versus 1.29
Nifty Futures add 29.2 lakh shares
Futures at a 10-pt discount versus 7-pt discount
Nifty 5100 Call adds 24 lakh shares in Open Int
Nifty 5200 Call adds 15.9 lakh shares in Open Int
Nifty 5300 Call adds 15 lakh shares in Open Int
Nifty 5000 Put adds 17.9 lakh shares in Open Int
Nifty 4900 Put adds 6.7 lakh shares in Open Int
FIIs in F&O on January 21
FIIs net sell Rs 3881 crore in Nifty Futures
FIIs net buy Rs 735 crore in Nifty Options
FIIs net sell Rs 411 crore in Stock Futures
FIIs net buy Rs 21 crore in Stock Futures
Market cues:

FIIs net sell USD 7 million on January 20
Total F&O Open Int up by Rs 4891 crore at Rs 1,21,439 crore
FIIs net sell Rs 853 crore in cash on January 21 (Prov)
DIIs net buy Rs 231 crore in cash on January 21 (Prov)
FIIs net sell Rs 2261 crore in F&O on January 21 (Prov)
US Markets :
In US markets, the Dow logged its biggest two-day drop since June. Big financials led today's decline as President Obama rattled the market with plans to crack down on Wall Street risk taking.

President Obama proposed new limits on the size and trading practices of big banks, saying he wanted to prevent a return to the "old practices" that led to the financial meltdown.
Big banks were crushed by Obama's remarks: Bank of America, Morgan Stanley, JP Morgan and Goldman Sachs were all down more than 4%. Goldman Sachs's stellar results were overshadowed by these comments.
The Dow Jones Industrial Average slipped 213.27, or 2%, to 10,389.88. The broader Standard & Poor's 500 Index declined 21.56 points, or 1.9%, to 1,116.48. The Nasdaq Composite Index was down 25.55 points, or 1.1%, to 2,265.70.

US President said that, "We should no longer allow banks to trade too far from their central mission of serving their customers. In recent years too many financial firms have out tax payer money at risk by operating hedge funds and private equity funds making riskier investments to reap a quick reward. And these firms have taken these risks while benefiting from special financial privileges that are reserved only for banks."

In economic news, jobless claims unexpectedly rose by 36,000 last week but the labor department clarified that it was an administrative up tick, not an economic one.

The Philadelphia Fed index dropped to 15.2 in January from 22.5 in December but leading indicators rose 1.1% in December.
Crude prices fell more than 2% to below USD 76 for the first time this year after a government data showed a sharp drop in US refining activity to nearly its lowest level in 25 years indicated weak demand for fuels.
In the Forex market, the dollar fell sharply versus the yen and erased gains against the euro Obama's remarks. Investors feared the plans would limit US bank profits and that helped the euro recover from a nearly six-month low. The yen rose across the board as investors cut risky trades, some of which were funded with the Japanese currency. The dollar index is currently trading above the 78 mark.
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