30 Nov 2010 Closing Market Updates 15:30
Market opened in negative but gave a smart bounceback as better than expected growth in GDP after ignoring Asian market weakness.Central Statistical Organisation (CSO) reported GDP growth at 8.9% from 8.8% in the fiscal first quarter ended in Sept,2010 boosted by farm output and manufacturing.
After making intraday high of 5892.25, Nifty ended at 5863.35 with 33.35 points and Sensex ended at 19522.87 gaining 117.77 points.
Among BSE Sectoral Indices, yesterday's top gainer was quiet and stood the only loser by 0.49% whereas Realty gained today the maximum with 5.60% followed by Consumer Durables by 1.91%, Power by 1.90%, PSU(1.83%), Auto(1.37%), FMCG(1.28%), Bankex(1.26%) and Teck with abvove 1% gain.
DLF was the top gainer in Nifty50 stocks with 7.14% gain to end at 306.85 while ACC was the top loser by 1.56% fall and ended at 982.05
LIC Housing Finance was the turnover topper with traded value of Rs.9.86 million.
Ispat Industries was the most traded stock on the exchange today.
Advance / Decline Ratio was positive in the ratio of 3:1 as 1049 stcoks gained and 346 stocks declined today on NSE.
Gloabal Major Indices :
Hang Seng : -158.23
Nikkei : -188.95
FTSE : +17.29
CAC : +3.05
DAX : +52.67
Dow Future : -31.00
Nasdaq Future : -6.50
3 Nov 2010 Morning Market Updates 08:41
Spot Nifty Levels :
Resistence : 5870/5940
Support : 5782/5740
Buy Apil Abv 860 sl 853 T 876
Hold Long Auropharma If closes abv 1263 sl 1240
Buy Bel Fut sl 1711 T 1752
Buy Bhel Abv 2168 sl 2149 T 2188/2212(P)
Buy Cumminsind Abv 776 sl 764 T 784/792
Buy HclTech Abv 398 sl 392 T 406
Buy Patni Abv 473 sl 468 T 484
Buy Relinfra in Dips (P)
Buy Wipro Abv 421 sl 415 T 428
Sell ACC Bel 971 sl 990 T 950/938(P)
Book Profits/Exit Long Bank Nifty Fut At 12000
Sell Niittech Bel 180 sl 185 T 168
Sell OFSS sl 2086 T 2008 (P)
Stocks that are in news today:
Results today: Bajaj Hindusthan, MIC Electronics
Public offers
MOIL IPO update: Subscribed 2.37 times (x); QIB 2.14x, retail 2.8x, HNI 2.4x, employee portion subscribed 0.13x
Shipping Corporation FPO opens today; price band Rs 135-140/share
CBI says exclusive
R Nair facilitated Rs 200 crore loan for DB Realty
Ramachandran Nair is former CEO, LIC Housing Finance
CBI says
Sanjay Sharma discloses having given Rs 50 lakh to MS Johar
Sanjay Sharma gave Rs 50 lakh to MS Johar in 5 installments
MS Johar is Central Bank of India Director (CA)
Kapil Sibal says
85 licensees to be issued notices
85 licensees to be given 60 days for response
S-Tel, Uninor, Loop, Videocon did not meet eligibility norms
TRAI to DOT: sources
Uninor licenses in Assam, NE, J&K, Haryana, MP, Punjab, HP, Rajasthan should be cancelled
Etisalat licenses in Delhi, Mumbai should be cancelled
Aircel licenses in Rajasthan, Haryana, Madhya Pradesh, Punjab should be cancelled
Sistema Shyam licenses in Gujarat, Punjab, UP-W, UP-E, MP, HP, Orissa, Assam, NE, J&K should be cancelled
Loop licenses in Maharashtra, Gujarat, AP, Karnataka, Tamil Nadu, Kerala, UP-W,UP-E, West Bengal, HP, Bihar, Assam, NE, J&K should be cancelled
Reliance Communications says
Welcomes referring Swan's cap structure & ownership to MCA
Doubts raised by CAG 'entirely incorrect & unjustified'
Fully compliant at all times with all applicable laws
Cease to be 9.9% shareholders of Swan before grant of license
No question of Swan Tele being a front co
Fertiliser Secretary says:
Seeking Rs 8,000-10,000 crore more subsidy for FY11
FY11 total fertliser subsidy seen between R5s 65,000-67,000 crore
Decision on urea price decontrol likely this fiscal
State companies contracted 8 mt DAP import this fiscal
M&M Financial Services to raise upto Rs 570 crore via QIP
Board approves raising FII limit to 40% from 35%
VK Sharma says
Customers, Investors need not worry about business growth
VK Sharma is new MD, CEO - LIC Housing Finance
VK Sharma says
New job a challenge, but an opportunity
Margins, credit growth target will not be hurt
Simbhaoli Sugar Q4
Sales at Rs 230 crore versus Rs 238 crore
Loss of Rs 39.2 crore versus profit Rs 23.5 crore
Consolidated for FY10
Sales at Rs 1261 crore versus Rs 706 crore
Loss at Rs 74.8 crore versus profit Rs 71.9 crore
Other stocks and sectors that are in news today:
Spice Mobility to buy Malaysia Co Beoworld: NW18
LN Mittal may be in talks to pick up stake in Ispat – ET (Ispat has agreed to sell 10% stake to Stemcor)
Gate eyes Patni, talks to Deutsche Bank, Apax for USD 600 million debt in leverage deal – TOI
Dewan Housing is the front-runner to acquire Deutsche Postbank for Rs 1100 crore – TOI
Dhanlaxmi Bank gets RBI nod to invest Rs 13 crore in Destimoney Securities, forming 15% of the equity
Sharad Pawar warns govt of targeting corporates – ET
Fortis Healthcare CEO quits – ET
Marathwada Refractories open offer at Rs 397/sh
REC approved a proposal for Foreign Currency Borrowings not exceeding USD 500 million
Satyam announces Global Partnership with Stratus Technologies'
F&O cues:
Total Nifty Futures' open interest (OI) was up by Rs 1,227 crore
Options' open interest up by Rs 3,763 crore
Stock Futures added 2 crore shares in OI
Nifty Futures premium at 15 points versus 28 points premium
Nifty Open Interest PCR was down at 1.23 from 1.26
Total Puts added 23.6 lakh shares in OI
Calls added 30.7 lakh shares in OI
Nifty 6300 Call added 7.2 lakh shares in Open Int
Nifty 5700 Put added 6.5 lakh shares in Open Int
Nifty 6200 Call added 4.8 lakh shares in Open Int
Nifty 5400 Put added 4.24 lakh shares in Open Int
Nifty 6000 Call added 3.9 lakh shares in Open Int
Nifty 5900 Call added 3.8 lakh shares in Open Int
FIIs in F&O on November 30 as per NSE
FIIs net buy Rs 698 crore in Index Futures
Index Futures OI up by 10,658 contracts
FIIs net buy Rs 668 crore in Index Options
Index Options OI up by 35,508 contracts
FIIs net buy Rs 526 crore in Stock Futures
Stock Futures OI up by 4,882 contracts
Market cues:
NSE F&O open interest was up by Rs 4,990 crore at Rs 1.23 lakh crore
FIIs were net sellers to the tune of USD 147 million while mutual funds were net buyers of Rs 235 crore in the cash market on November 26, as per data available on SEBI website.
FIIs were net buyers of Rs 156 crore and DIIs net buyers of Rs 199 crore in cash market on November 29, as per provisional data on NSE. FIIs were net buyers of Rs 1,823 crore in F&O market.
US Markets:
The US markets ended slightly lower, significantly off the session lows as financials gained. The dollar's movement and concerns about Europe's sovereign debt continued to worry investors.
The Dow Jones Industrial Average closed at 11,052.49, down 39.51 points or 0.36%. The Nasdaq Composite fell 9.34 points or 0.37% to settle at 2,525.22 and the S&P 500 Index ended at 1,187.76, down 1.64 points or 0.14%.
In data to watch, the S&P/Case-Schiller home price index for September is expected today.
Also, the consumer confidence numbers for November are expected to come today at 52. The reading for October came at 50.
European markets fell to a seven weeks low, after an 85 billion euro bailout for Ireland failed to allay fears of contagion.
The dollar rose against a basket of currencies as the euro sank to two-month lows, with more weakness expected as investors were left unimpressed with a rescue package for Ireland and remained fearful that another debt-burdened euro zone economy could be bound for a bailout. The greenback however gave up some of its gains in afternoon trade.
In other asset classes - oil prices surged as Europe's cold weather and hopes for better consumer demand lifted refined products futures. Geopolitical worries, meanwhile, offset the dollar's rise and fears the Ireland bailout plan might not keep Europe's debt woes contained.
In base metals, copper pared a rise to a one-week high as equities retreated after Ireland's bailout failed to ease concern about Europe's countries needing further aid.
29 Nov 2010 Closing Market Updates
As mentioned in mornign blog market gave a smart bounce back.
The 30-share benchmark index, BSE Sensex opened with a gain of 93.73 points or 0.49% at 19,230.34, while the broad based NSE Nifty started with a rise of 76.60 points or 1.33%, at 5,828.55.
Sensex Movers
Reliance Industries contributed rise of 84.2 points in the Sensex. It was followed by I C I C I Bank (40.05 points), Larsen & Toubro (25.23 points), Tata Consultancy Services (20.13 points) and Infosys Technologies (18.97 points).
However, Reliance Infrastructure contributed fall of 6.39 points in the Sensex. It was followed by I T C (4.48 points), Tata Steel (3.85 points), Reliance Communications (2.11 points) and H D F C Bank (1.38 points).
Major Gainers:
Reliance Industries 998.40 (3.73%),
Wipro 417.75 (2.80%),
Tata Consultancy Services 1071.70 (2.68%),
Bharat Heavy Electricals 2153.90 (2.43%),
I C I C I Bank 1154.30 (2.42%),
Jindal Steel & Power 624.30 (1.87%).
Major losers:
Reliance Energy 823.60 (3.66%),
Reliance Communications 127.70 (1.57%),
Tata Steel 591.85 (0.80%),
I T C 168.60 (0.39%),
ACC 997.60 (0.37%),
H D F C Bank 2297.90 (0.13%)
All BSE secotrial indices ended in green, OIL & GAS leaded with 2.69%
Mid & Small-cap Space
The BSE Mid and small caps underperformed their larger counterparts gaining 0.35% and 0.43% respectively.
The major gainers in the BSE Midcap were Alstom Projects India (3.13%), Allcargo Global Logistics (2.68%), Ackruti City (2.32%), Aban Offshore (1.51%) and Allahabad Bank (1.14%).
The major gainers in the BSE Smallcap were Alok Industries (3.24%), Allied Digital Services (2.92%), Vipul (2.79%), Aarti Industries (2.34%) and A K Capital Services (1.1%).
Sectors in Limelight
The Oil & Gas index was at 10,125.75, up by 272.89 points or by 2.77%. The major gainers were Cairn India (5.94%), Bharat Petroleum Corporation (1.8%), Aban Offshore (1.51%), G A I L (India) (1.16%) and Oil & Natural Gas Corporation (0.16%).
The IT index was at 6,101.03, up by 91.92 points or by 1.53%. The major gainers were Infosys Technologies (1.04%), Tech Mahindra (1.03%), Mphasis (0.97%), Rolta India (0.95%) and Patni Computer Systems (0.33%).
The Bankex index was at 13,472.13, up by 189.03 points or by 1.42%. The major gainers were Bank Of India(4.27%), Canara Bank (3.16%), Indusind Bank (2.88%), I C I C I Bank (2.42%) and Bank Of Baroda (1.88%).
The Capital Goods index was at 14,985.22, up by 179.10 points or by 1.21%. The major gainers were Bharat Heavy Electricals (2.43%), Areva T & D India (2.39%), Larsen & Toubro (1.79%), Punj Lloyd (0.52%) and Havell`S India (0.01%).
Market Breadth
Market breadth was negative with 1,379 advances against 1,572 declines.
Value and Volume Toppers
L I C Housing Finance topped the value chart on the BSE with a turnover of Rs. 3,060.36 million. It was followed by State Bank Of India (Rs. 1,149.50 million), Reliance Industries (Rs. 832.50 million) and BGR Energy Systems (Rs. 749.45 million).
The volume chart was led by Cals Refineries with trades of over 57.48 million shares. It was followed by Hindustan Construction Company (13.48 million), Unitech (6.60 million) and I F C I (5.93 million).
Nifty ended 82.85 points up at 5834.80
Sensex ended 263.66 points at 19400.27
29 Nov 2010 Morning Market Updates 08:22
As per technical analysis, most of the stocks (including Nifty50 stocks) showing in oversold zone on stochastic.It interpret that it may bounce back anytime.We strongly recommend avoid short sell or trade with strict stops.
Note : Follow Sell recommendations in Negative market bias & v.v.
Recommendation :
Buy Apollotyre Abv 67
Buy Auropharma sl 1228 T 1248
Buy Cipla Abv 343 sl 338 T 350
Buy IDBI in dips (P)
Buy Petronet Abv 120 sl 117 T 126
Buy Rcom in dips (P)
Buy TCS Abv 1050 sl 1037 T 1073
Sell Dishtv sl 66 T 60
Sell Hindalco Bel 193
Sell Infosystch Bel 3028 sl 3056 T 2976
Sell JPAssociat sl 108 T 100
stocks in news today:
Results today: BF Utlities, Dwarikesh Sugar, Escorts, Simbhaoli Sugar
GMR enters into agreement to sell 50% in Intergen to Huaneng for USD 1.23 billion
Sale price to cover cost of acquisition & interest cost paid so far, company to pre-pay recently refinanced Intergen debt of USD 737 million
Ranbaxy - PharmAsiaNews
Ranbaxy launches Generic Aricept in US market
US market for generic Aricept seen at USD 3 billion
Greenstone has authorized generic for Aricept in US market
Ranbaxy eyes revenue opportunity of nearly USD 200 million in 6 months
Generic Aricept is a USD 3 billion drug expected to add Rs 16/per share on EPS
Lavasa Corp:
Shocked at 'stop work' notice from MOEF
Tourism project norms misinterpreted by complainant
Was exempt from EC from MoEF as per tourism project norms
IPO Corner
MOIL IPO Update:
Issue subscribed 0.76 times (x) on day 1
QIB subscribed 1.13x, retail 0.36x, HNI 0.88x
Shipping Corp FPO
Price band set at Rs 135-140/share
SCI Chairman says
SCI issue to raise around Rs 1,100 crore via FPO
Shipping Corp’s CMP Rs 145.40
Claris Life IPO
Revises price band downwards to Rs 228-235/sh
New price 18-20% lower than the earlier price band of Rs 278 to Rs 293
Claris issue extended till December 2
Subscription as of Friday; Total: 0.44x, QIB: 0.15x, NII 0.10x, Retail: 1.22x
Other stocks and sectors that are in news today:
Tata’s loan to Unitech in 2007 under scanner, investigators probe end use of money – ET
Ratan Tata may move SC against tape leaks today
Philips leads race to acquire Halonix from Actis, deal to trigger open offer – ET
Govt ask banks, FIs to submit loan details – ET
Videocon finds gas in Africa, 3rd discovery by the consortium in the region – ET
Coal India may end talks with Massey Energy for mine deal – ET
HDFC chalks out major expansion into education sector – BS
NTT resumes talks for buying Patni Promoters’ stake – BS
GVK, Lanco Infra highest bidders for Aussie coal mine – BS
Bhushan-Sumitomo deal struck on valuations – BS
Tata Motors set to pay its vendors 20% of their Singur losses upfront – FE
SKS could lose its corporate partners post controversy – FE
Aurobindo Pharma working on second deal with Pfizer – DNA
ITC Hotels, Nitesh Estate to pick up 60% in Kochi project JV – TOI
EIH directors sell 0.86% stake
Mudra Lifestyle - Board approves allotment of 1.2 crore shares i.e. 25% to E-LAND FASHION CHINA HOLDINGS at Rs 60
Bajaj Hindusthan - Bombay HC approves Scheme of Amalgamation of Bajaj Hindusthan Sugar and Industries Ltd (BHSIL) with Bajaj Hindusthan Ltd
Gammon India acquired 84.16% of Equity Capital in M/s Metropolitan Infrahousing Pvt and consequent upon the acquisition, M/s Metropolitan Infrahousing has become a subsidiary of company
Neyveli Lignite Corporation Ltd: the Cuddalore / Neyveli region has been experiencing excessive rainfall since November 25, 2010. Neyveli Mines being open cast Mine, the mining activities have been affected due to the above rainfall resulting in lower power generation in all linked Power Stations (not an unusual occurrance)
-Glodyne Technoserve: approves stock split; face value of 10 to become face value of 6
F&O cues:
Total Nifty Futures down Rs 2742 crore
Options Open Int up Rs 7658 crore
Stock Futures shed 4.7 cr shares in Open Int
Nifty OI down 10 lakh shares in Open Int
Nifty Futures at 28 pts prem versus 48-pts prem
Nifty Open Int PCR down at 1.26 from at 1.32
Nifty Puts add 51.7 lakh shares in Open Int
Nifty Calls add 64.6 lakh shares in Open Int
Nifty 5600 Put adds 13 lakh shares in Open Int
Nifty 5800 Put adds 12.2 lakh shares in Open Int
Nifty 6000 Call adds 11.5 lakh shares in Open Int
Nifty 5300 Put adds 9.5 lakh shares in Open Int
Nifty 6200 Call adds 9.3 lakh shares in Open Int
Nifty 5400 Put adds 8.8 lakh shares in Open Int
FIIs in F&O on November 26
FIIs net buy Rs 168 crore in Index Futures
FIIs net buy Rs 3272 crore in Index Options
FIIs net buy Rs 359 crore in Stock Futures
Market cues:
NSE F&O Open Int was up Rs 4,916 crore at Rs 1.18 lakh crore
$113 bn deal reached on Irish bailout
Portugal denies the need of a bailout
South Korean President
North Korea attack an inhumane crime
N Korea artillery attack different from past behaviour
Feel responsible for failing to protect lives in attack
N Korea will pay price in case of further provocations
To punish North Korea for its military provocations
Patience & tolerance has only led to more provocation
As per provisional data of November 26, FIIs were net sellers of Rs 628 crore in the cash market. FIIs were net buyers of Rs 3715 crore in the F&O market. DIIs were net buyers of Rs 959 crore in the cash market.
Last Week
FIIs net sell USD 57.5 crore in the cash market
FIIs net buy USD 1.06 billion in the F&O market
DIIs net buy Rs 2777 crore in the cash market
US Markets:
Commodity-related shares led US stocks lower on Friday in a shortened post-holiday session as investors unloaded risky assets on worries that euro-zone debt problems may spread.
Consumer stocks were also a major focus as Black Friday, often the biggest shopping day of the year, began what is expected to be the strongest holiday shopping season in three years.
While strong sales on Black Friday, when many retailers move into the black, could give a boost to stocks next week, Europe's shaky finances may temper any gains.
The US dollar rallied while the euro slid to a new two-month low amid fears that Portugal and Spain could follow Ireland in needing bailouts to shore up their economies.
The S&P materials index dropped 1.2% as key base metals prices fell, pressured by the advancing greenback and after the Shanghai Futures Exchange raised margin requirements, prompting liquidation of speculative positions.
Freeport McMoRan Copper & Gold dropped 2.6% to $98.07.
"There are concerns from euro land, and sharp selloffs in large European banks kind of set the tone for the day," said Steve Goldman, market strategist at Weeden & Co in Greenwich, Connecticut.
The S&P financial index fell 1.1%, with Bank of America down 1.2% at $11.14.
The Dow Jones industrial average dropped 95.28 points, or 0.85%, to end at 11,092. The Standard & Poor's 500 slipped 8.95 points, or 0.75%, to 1,189.40. The Nasdaq Composite lost 8.56 points, or 0.34%, to 2,534.56.
For the week, the Dow dropped 1% and the S&P 500 fell 0.86%, but the Nasdaq Composite gained 0.65%. US markets were closed on Thursday for Thanksgiving Day.
Investors were further rattled Friday after China warned against military acts near its coastline ahead of US-South Korean naval exercises. Earlier, North Korea had said those naval drills risked pushing the region toward war. The North shelled a South Korean island on Tuesday.
Retail shares were sluggish despite the upbeat sentiment over Black Friday. Discount retailers Wal-Mart Stores Inc fell 0.5% to $53.74 and Target Corp shed 0.6% to $56.88.
But Macy's Inc , operator of its namesake retail chain and upscale Bloomingdale's, edged up 0.4% to $26.
"The (Black Friday) data that has been leaking seems to be better than expected, and after two years of miserable performance at the malls, there seems to be some pent-up demand," Weeden & Co's Goldman said.
Del Monte Foods Co rose 4.5% to $18.80 a day after the company agreed to a buyout led by Kohlberg Kravis Roberts & Co .
The US stock market closed three hours early at 1 p.m. (1800 GMT) a day after the Thanksgiving holiday.
The shortened session saw 2.82 billion shares exchange hands on the New York Stock Exchange, the American Stock Exchange and Nasdaq. The year-to-date average volume of a full session is 8.65 billion shares.
Declining stocks outnumbered advancing ones on the NYSE by a ratio of slightly more than 2 to 1, while on the Nasdaq, about seven stocks fell for every four that rose.
EU governments on Sunday approved an euro85 billion ($113 billion) bailout deal for Ireland to help the debt-struck nation withstand the weight of its banking crisis.
According to a statement released by the Irish government, the country will take euro10 billion immediately to boost the capital reserves of its banks. Another euro25 billion earmarked for the banks will remain in reserve.
The Irish government's public finances will receive euro50 billion, to be drawn upon as necessary.
"It provides Ireland with vital time and space to successfully and conclusively address the unprecedented problems that we've been dealing with since this global economic crisis began," said Irish Prime Minister Brian Cowen at a press conference in Dublin.
The statement said the International Monetary Fund, the 16 eurozone nations and the European Commission will be involved. Britain, Sweden and Denmark will offer bilateral loans.
The statement says the average interest rate Ireland will is 5.8 percent. This total reflects higher rates to be charged by EU sources, and lower rates from IMF and national donors.
With 10-year bond yields averaging over 7.5 percent in Greece, Ireland, Portugal, Spain and Italy on Nov. 26, European leaders are fighting to prevent the spread of Ireland’s fiscal woes from threatening the survival of the 12-year-old euro.
“We have to discuss the broader ramifications of the current crisis and we have to discuss a systemic response to this crisis,” EU Economic and Monetary Affairs Commissioner Olli Rehn before the meeting that was only announced this morning.
Ireland became the second euro country to seek a rescue after the Greek debt crisis earlier this year destabilized the currency and forced the EU to set up a 750 billion-euro rescue fund backed by the International Monetary Fund.
Leaders including Trichet, EU President Herman Van Rompuy, European Commission President Jose Barroso, Jean-Claude Juncker, head of the euro-area finance ministers group, German Chancellor Angela Merkel and French President Nicolas Sarkozy held telephone talks before today’s meeting, the EU said.
“The euro is under threat here,” said Alan McQuaid, chief economist at Bloxham Stockbrokers in Dublin. “The market has got it into its head that it is going to pick off one country at a time.”
Dublin Protests
Ireland wants to stamp out the “uncertainty” that’s unsettling euro-area investors, Energy Minister Eamon Ryan told Dublin-based broadcaster RTE yesterday as more than 50,000 people took to the streets of Dublin to protest budget cuts.
As the crisis that began in Greece engulfs Ireland and threatens to pull down Portugal and Spain, investors are looking for today’s meeting to provide details on Ireland’s interest rate and the fate of senior bondholders in the country’s banks.
Ryan said yesterday that a Nov. 25 report by RTE that Ireland may pay as much as 6.7 percent interest for nine-year loans was “inaccurate.”
The Irish government is “confident” it can conclude a “substantial package” with the EU and the IMF today, John Curran, a government spokesman, said in an interview with RTE.
Cowen’s Government
Prime Minister Brian Cowen has overseen the collapse of Ireland’s banking system and national finances after a 10-year property bubble burst, the economy tumbled into recession and unemployment surged close to 14 percent. Cowen’s government is also unraveling. The Green Party, a junior coalition partner, wants January elections and some lawmakers from his own party are slamming his leadership.
“Ireland must not dance to the tune of the ECB and IMF and run the risk of squandering our future by rushing any decision regarding borrowings or repayment terms in the next 24 hours,” Ned O’Keefe, a lawmaker from Cowen’s ruling Fianna Fail party, said in a statement yesterday.
Ireland’s government plans to cut spending by about 20 percent and raise taxes over the next four years to reduce its budget deficit to 3 percent of gross domestic product by 2014, from 32 percent this year, when 31 billion euros in capital support for banks are included. The government expects tax revenue for this year to be 31.5 billion euros, it said on Nov. 24.
Protesters cheered yesterday on Dublin’s O’Connell Street when Siobhán O’Donoghue, director of Migrants Rights Center Ireland, tore up a copy of the government’s four-year tax and spending plan, and called for a general election before the announcement of next year’s budget on Dec. 7.
Paying the Bill
Ireland has been brought “to its knees” by the government and bankers, Jack O’Connor, head of Ireland’s umbrella organization for labor unions, told the crowd. “Several generations of Irish men and women” will have to foot the bill, he said.
The need for a pact is intensifying as Irish banks’ capital dwindles. Allied Irish Banks Plc and Bank of Ireland Plc bonds fell Nov. 26 on concern the government will abandon a pledge to protect senior bondholders and force them to share the bailout costs. Ireland’s Sunday Business Post and the Sunday Tribune newspapers today reported that the ECB vetoed hurting senior bond holders.
Britain, the largest EU country not using the euro, plans to offer aid to Ireland because “it’s in everyone’s national interest and it’s in Britain’s national interest that we get some economic stability in Ireland and indeed across the euro zone,” Chancellor of the Exchequer George Osborne said in Brussels.
**Shared from many sources.
26 Nov 2010 Closing Market Updates 15:30
Koreas’ tension, housing loan scam, insider trading news pull the market to two month’s low. Market was volatile today as Indian indices once again slipped into red after turning positive for a brief period in afternoon trade. A short relief rally seen in the market today as Banking stocks gained on bargain hunting after the correction in the preceding three trading sessions. But again Europen opened negative and Indian markets lost the gains and recovery.Stock prices of Money Matters, Central Bank and LIC Housing decline on reports that SEBI is examining the possibiltiy of insider trading in shares of these companies.
Nifty ended at 5750.20 with 49.55 points down and Sensex ended at 19125.60 with a fall of 192.56 points. Initially looking Nifty, has taken a support of 5720.
Among BSE Sectoral Indces, Bankex was the only gainer by just 0.02%. Realty lost the most by 4.32% followed by Consumer Durables(3.80%), Metal(2.55%), Power(2.18), Auto(2.11) and FMCG by 2.07% fall.
Sail was the top gainer in Nifty50 stocks which gained 3.50% and ended at 174.50. JP Associates was the top loser by 7.42% and ended at 106.00
Stocks from CNX Nifty like Bhel, JPAssociat, Jindalstel, NTPC, Rcom, Relinfra, Sesagoa, Suzlon hit a new 52 low today.
Advance Decline Ratio was poor in the ratio of 6.98 : 1 as 1228 stocks declined whereas 176 stcoks gained today on NSE.
State Bank Of India was the turnover topper by traded value and Unitech was the most traded stocks on NSE today.
Major Global Indices :
Hang Seng :
Nikkei : -177.43
FTSE : -40.20
CAC : -63.05
DAX : -75.18
Dow Futures : -63.00
Nasdaq Futures: -19.00
25 Nov 2010 Morning Market Updates 20:40
Nifty Analysis :
Nifty has given a fall of 65 to 75 points since last 3 days consecutively.
On 23/11 Nifty felt by 75.25 points
on 24/11 Nifty felt by 69 points
on 25/11 Nifty felt by 66 points.
But the reason to worry is the rising volume than the bull run.For a reference, giving a pic below of 1 year Nifty chart.
In this case it wont surprize if Nifty corrects upto 5430 level. Support levels are 5815,5720,5634,5571. Now crucial resistance will be 5970. But as said previously Nifty will cross 9000 mark in coming decade. We need to have patience and positive thinking.
Investors need not to panic as market will give many opportunities to capitalize on.
Keep reading our daily blogs for free recommendations.
If readers have any queries, can call on +919975060000 on week days between 1-3 pm only.
Happy Investing !
Note :
* All levels are about Spot nifty.
* Click on the chart for full image.
Disclaimer :
This blogs has been prepared by the Research Division of Integrity Financial Consultants Pvt. Ltd.(IFCL),Pune, India and is meant for use by the recipient only as an informative. Nothing on this blog/website is intended or should be construed as investment advice. It is intended to be used for informational purposes only. This document is not to be reported or copied or made available to others without prior permission of (IFCL). It should not be considered or taken as an offer to Buy or Sell or a solicitation to Buy or Sell any security. These views alone are not sufficient and should not be used for the development or implementation of an investment strategy. It should not be construed as an investment advice to any party. All opinions and estimates included here constitute our view as of this date and are subject to change without notice. The information contained in this report other than the recommendation(s) has been obtained from sources that are considered to be reliable. However, iNTEGRITY has not independently verified the accuracy or completeness of the same. Neither iNTEGRITY nor any of its affiliates and/or its business associates and/or its directors and/or its employees accept any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well as the market related investments are subject to market risk and volatility. The suitability or otherwise of any investments will depend upon the recipient's particular circumstances and, in case of doubt, advice should be sought from an independent expert/advisor. Either (IFCL) and / or its affiliates and / or its business associates and / or its directors and / or its employees and / or its representatives and / or its clients and / or their relatives may have position(s), make market, act as principal or engage in transactions of securities of companies referred to in this report and they may have used the research material prior and / or after to publication. The information shared in this blog may be and or may not be 100% perfect as it is being shared from many sources. iNTEGRITY and / or its affiliates and / or its business associates and / or its directors and / or its employees and / or its representatives and / or its clients and / or their relatives do not take any type of responsibility if reader or recommendation(s) follower will face any losses or liabilities because of our recommendations; market risk will be always there while and whenever concerned parties enter the stock market by any means.It is recommended for the recipients to take their decisions according to re-verification of the shared information. No arguments and / or claims and / or objections will be entertained. Similarly, iNTEGRITY and / or its affiliates and / or its business associates and / or its directors and / or its employees and / or its representatives and / or its clients and / or their relatives will not take any assurity about our given recommendation(s) about its success. Sole discretion will be most recommended for readers and/or subscribers and/or followers and/or information receivers and/or investors and/or traders.
25 Nov 2010 Closing Market Updates 15:31
Market was positive with amid volatility after the statement by junior finance minister Namo Narain Meena,"A loans bribery scandal in India that has led to several arrests is not a widespread scam and will not hit markets or the banking sector."But again market collapsed in last session on the November month expiry day even after inflation eases. Nifty ended at 5822.85 with 42.90 points down and Sensex ended with 107.67 points down to end at 19352.18.
India's food price index rose 10.15%, while the fuel price index climbed 10.57% in the year to November 13, government data on Thursday. In the previous week, India's food price index rose 10.15%, while the fuel price index climbed 10.57% in the year to November 13, government data on Thursday.
Among BSE Sectoral Indices, IT was the top gainer with 0.90% gains and Realty was the top loser with a drastic 5.03% fall.
In Nifty50 stocks, TCS gained the most with 2.14% and ended at 1026.30 whereas Suzlon dipped the most by 7.74% and ended at 46.50.
LIC Housing Finance was the turnover topper by traded value and Powergrid stood the most traded stock on NSE today.
Advance Decline ratio was negative in the ratio of 4.37:1 as 1136 stocks declined and 260 stocks gained today on NSE.
Major Global Indices :
Hang Seng : +30.82
Nikkei : +49.65
FTSE : +13.06
CAC : -10.07
DAX : +9.86
Dow Futures : -12.00
Nasdaq Futures : -1.00
25th Nov Morning Market Updates:
Stocks that are in news today:
KS Oils Q4
Net sales at Rs 1035 crore versus Rs 946 crore
Net profit at Rs 51.1 crore versus Rs 50.2 crore
Jubilant Lifesciences
Goes ex-scheme of amalgamation:
Amalgamation of Speciality Molecules and Pace Marketing Specialities Ltd with Jubilant Life Sciences Ltd, and demerger of Agri Products division, Performance Polymer division and IMFL division of Jubilant Life Sciences Ltd. into Jubilant Industries Ltd.,
Bank Bribery Scam
CBI says
8 officials of banks, finance company arrested
Names include LIC Housing Finance CEO Ramchandranan Nair, LIC Secretary (invst) Naresh Chopra
Central Bank director (CA) MS Johar, GM Bank of India RN Tayal, Delhi DGM of PNB, Venkoba Gujjal, Rajesh Sharma, Sanjay Sharma and Suresh Gattani of Money Matters
'A lot of crore involved' in bank bribery case
Cases relate to illegal gratification to PSB officials
CBI Remand Copy Alleges
Undue favour related to DB Realty, Mantri Realty, Sigrun
Undue favour related to entertainment world Lucknow
Undue favour related to Indore city treasures
Ramchandranan Nair showed undue favours to above companies
Undue favours routed via Rajesh Sharma, Money Matters
Rajesh Sharma delivered Rs 45 lakh to R Nair on November 16
R Nair demanded gratification to finance Goregaon flat
Inside information provided in respect to investment matters of LIC
Naresh Chopra allegedly provided inside information
Inside information on JSW Power, Pantaloon, Adani, JP Hydro
Rs 12.12 lakh seized from Money Matters Mumbai office
Gift vouchers of Rs 4.97 lakh seized from Money Matters office
CBI copy on Central Bank
Ms Johar provided undue favour on Lavasa
Rs 10.15 lakh recovered from residence of Sanjay Sharma
LIC says
NPAs are minimal in housing sector
LIC exposure to builders is only 11-12%
This is a bribery case
LIC Housing Finance says:
All loans given to developers secured
All loans given to developers performing
Only small portion of loans to developers under question
Loans under question is 0.6% of balance sheet
All procedures have been followed
LIC to take decision on status of R Nair
Finance Ministry calls for reports from PSBS, FIs raided by CBI
Department of Financial Services seeks report from Central Bank, PNB, BOI, LIC
Finance Ministry says
All loans of LIC fully secured
Info sought from BOI on OPG power, BGR Energy
Info sought from BOI on Ashapura Minechem
Of 3 BOI accounts, only 1 NPA due to derivative losses
BOI officials questioned by CBI on November 23
No impact on Central Bank asset quality
No link between PNB official & PNB loan accounts
IRDA source:
IRDA team varified SKS documents;
IRDA found irregularities related to insurance;
SKS likely to be fined if found guilty.
SKS official reaction it was part of regular visit by IRDA
Other stocks and sectors that are in news today:
Shriram EPC awarded order from SAIL for Rs 68 crore for Durgapur Steel Plant
MRF to announce Q4 and FY10
SCI board meet today to consider the pricing of proposed Follow on Public Offer
Kingfisher board meet today to consider issue of convertible and/or redeemable securities to the consortium of lenders (pursuant to a debt recast package), the promoters / promoter group of Kingfisher Airlines Ltd., their PACs and/or other investors
Sun Pharma goes Ex-split 5:1; announces USFDA tentative approval for generic Cymbalta
SEBI bars Sahara India from raising funds from market
RIL, NTPC may settle gas row out of court – ET
50 Kingfisher pilots quit to join rival Jet Airways – ET
Oracle wins USD 1.3 billion from SAP in copyright case – Agencies
UPC independent directors reject Unitech buyout offer – DNA
Reliance Broadcast Network in talks to buy stake in radio city
F&O cues:
Stock Futures shed 3.3 cr shares in Open Int
Futures Open Int up Rs 318 crore
Options Open Int up Rs 1430 crore
Nifty Futures add 20.2 lakh shares (7% Open Int) in Open Int
Nifty Futures prem at 8.5 pts versus 7 pts
Nifty Open Int PCR down 0.97 versus 1.01
Nifty Puts shed 5 lakh shares
Nifty Calls add 28.5 lakh shares in Open Int
Nifty Nov 6000 Call adds 13 lakh shares in Open Int
Nifty Dec 5800 Put adds 11.5 lakh shares in Open Int
Nifty Dec 5600 Put adds 4.7 lakh shares in Open Int
Nifty Dec 6200 Call adds 3.7 lakh shares in Open Int
Nifty Dec 5900 Call adds 3.6 lakh shares in Open Int
Nifty Nov 6000 Put sheds 13.4 lakh shares in Open Int
Nifty Nov 5900 Put sheds 8.3 lakh shares in Open Int
FIIs in F&O November 24
FIIs net sell Rs 482 crore in Index Futures; Open Int up by 21,161 contracts
FIIs net buy Rs 45 crore in Index Options; Open Int up by 3,131 contracts
FIIs net buy Rs 258 crore in Stock Futures; Open Int down by 2054 contracts
Market cues:
NSE F&O Nov series expiry today
Total Open Int down 3% Vs last expiry
NSE F&O Open Int was up Rs 1,749 crore at Rs 1.76 lakh crore
Korea emergency meeting to be held today
As per provisional data of November 24, FIIs were net sellers of Rs 473 crore in the cash market. FIIs were net sellers of Rs 196 crore in the F&O market. DIIs were net sellers of Rs 95 crore in the cash market.
US Markets:
In the US markets, a barrage of economic reports ahead of the thanksgiving holiday brought about a strong, broad-based buying effort that helped stocks recover from Tuesday's precipitous drop.
Dow Jones Industrial Average gained 1.37% or 150.91 points at 11187.28. Nasdaq Composite rose 1.93% or 48.17 points at 2543.12. Standard & Poor's 500 added 1.49% or 17.62 points at 1198.35.
It's economic data that way a key trigger for US markets yesterday, the latest initial jobless claims count fell 34,000 week-over-week to a two-year low of 407,000, which is less than the 442,000 initial claims that had been widely expected. Continuing claims set their own two-year low at 4.18 million, down from 4.32 million in the prior week.
The improvement in jobless claims generally overshadowed disappointing durable goods orders data for October. Total orders declined 3.3%, which is worse than the 0.3% decline that had been widely expected.
Less attention was paid to personal income and spending for October. Income increased 0.5%, which is slightly stronger than the expected. Spending increased 0.4%, but that was a bit softer than expected.
The dollar remained flat as the euro earned a reprieve lifting off a two-month trough after three straight sessions of falls, but with the euro zone debt crisis still festering any rebound may well prove short-lived.
In the commodity space oil ends 3% higher on signs of economic improvement in US.
In the base metal space copper advanced on speculation mine strike in Chile may cut into supply.
24 Nov 2010 Closing Market Updates 15:30
Fear factor triggered as CBI raided on LIC Housing finance, Central Bank and Bank of India for multi-crore fake housing loans scandal.Realty and Banking sectors knocked the most.
Nifty slipped 83.65 points to end at 5851.10 whereas as Sensex declined 279.06 points to end at 19412.78.
Among BSE Sectoral Indices, only FMCG sectoar gained by 0.04%. Realty lost the most by 3.34% followed by Bankex with 2.94%.
In Nifty50 stocks, M&M gained the most 3% and DLF was the top loser which lost 3.58% today.
LIC Housing Finance Corpoaration was the turnover topper by traded quantity and Unitech was the top traded stock on NSE.
Advance/Decline ratio was negative as 876 stocks declined and 495 stocks gained today on NSE.
Major Global Indices :
Hang Seng : +127.72
Nikkei : -85.08
FTSE : +9.00
CAC : -5.55
DAX : +15.25
Dow Futures : -10.00
Nasdaq Futures : -2.00
24 Nov Morning Market Updates:
Stocks that are in news today:
Public offers
MOIL issue price fixed at Rs 340-375, to open on November 26; to raise Rs 1238 crore via 20% dilution (market talk was that price band could be around 450, current grey market premium stands at Rs 270-280)
Claris IPO opens today, issue price band at Rs 278-293/sh
SCI FPO opens on November 30, closes on December 3, board meet on 25th to consider pricing of their FPO
Dr Reddy's
Dr Reddy's Labs (DRL) has also bought rights for Augmentin and Amoxil brands in the US from GSK
DRL buys GSK’s oral penicillin facility in US
Other stocks and sectors that are in news today:
Jalan committee opposes listing of exchanges, clearing corporations and depositories (FT to get impacted)
M&M acquires 70% in Ssangyong Motors for USD 463 million
JSW Energy acquires Canada’s CIC Energy for Canadian dollar 422 million
Biyani tells kin to hand over Future reins to professionals – ET
Nestle ups stake in Indian arm by 0.8% to 62.76%, fuels speculation of possible delisting – ET
Gujarat Pipavav Port has entered into an MOU with Aegis Logistics Ltd., one of the leading oil, gas and chemical logistics Company, wherein they intend to take on lease 75 acres of land at Pipavav Port to develop tankage facility.
Siemens - results to be announced today
Abbott India board meet today to consider proposal of merger of Solvay Pharma
Greaves Cotton: stock split 5:1
F&O cues:
Stock futures shed 3.4 crore shares in Open Int
Futures Open Int down Rs 213 crore, Options Open Int up Rs 3663 crore
Nifty futures add 12.3 lakh shares in Open Int, prem at 7 pts versus nil
Nifty Open Int PCR down at 1.01 from 1.05
Nifty Puts add 16.2 lakh shares; Calls add 48 lakh shares in Open Int
Nifty Nov 5900 Call adds 19 lakh shares in Open Int
Nifty Nov 6000 Call adds 14.5 lakh shares in Open Int
Nifty Dec 5600 Put adds 8.5 lakh shares in Open Int
Nifty Dec 5800 Put adds 7.6 lakh shares in Open Int
Nifty Dec 5900 Put adds 6.2 lakh shares in Open Int
Nifty Dec 5700 Put adds 5,8 lakh shares in Open Int
Nifty Nov 6100 Put sheds 7.9 lakh shares in Open Int
Nifty Nov 6000 Put sheds 6.8 lakh shares in Open Int
FIIs in F&O on November 23
FIIs net sell Rs 1592 crore in Index Futures; Open Int up by 27,356 contracts
FIIs net buy Rs 2475 crore in Index Options; Open Int up by 83,522 contracts
FIIs net buy Rs 548 crore in Stock Futures; Open Int down by 10433 contracts
Market cues:
NSE F&O Open Int up Rs 3451 crore at Rs 1.75 lakh crore
Market-wide rollover 48%; Nifty rollovers 51%
Korea emergency meeting to be held today
As per provisional data of November 23, FIIs were net sellers of Rs 1493 crore in the cash market. FIIs were net buyers of Rs 1416 crore in the F&O market. DIIs were net buyers of Rs 1503 crore in the cash market
US Markets:
US markets tumbled amid fear of contagion effects of the Irish crisis on the other European countries and the Korean crisis. Downside momentum took the Dow below the 11,000 before it settled on its 50-day moving average and the S&P 500 moved below 1180 before it recovered to that point. The CBOE volatility index, widely considered the best gauge of fear in the market, soared more than 12% to nearly 21.
In economic data in US, upward revisions to third quarter GDP failed to provide fodder for buyers. The data indicated that US GDP grew 2.5% from July through September, higher than estimates.
Reflective of the GDP data, minutes from the most recent FOMC meeting generally indicated that the economic recovery has proceeded at a modest rate in recent months. However, there has been only a gradual improvement in labour market conditions. Also, inflation remains low.
In the currency space, the dollar touched a two-month high against the euro as Standard & Poor's ratings services cut Ireland's credit rating. The won also extend losses after yesterday's decline. Weaker Asian equities also supported the currency.
23 Nov 2010 Closing Market Updates 15:30
Vast volatile session ended with wiping out most of yesterday's gains on deepening of domestic political crisis due to 2G spectrum probe and rising geo-political tensions in East Asia.
Nifty gave almost 247 points movement in a day session. Nifty opened at 5971with nearly 40 points down and hit the day's low of 5824.95 as Hang Seng closed at day low, sheding 628 points and bounced back upto 5952 to end at 5925.95. Nifty lost 84.05 points and Sensex declined 291.66 points to end at 19665.93 Nifty Nov Future ended at 5941.30 with a highest trading volume since 26th Feb 2010.
All BSE Sectoral Indices ended in negative territory. Realty was the top loser with 3.32% fall.
In Nifty50 stocks, Bajaj-Auto gained the most by 2.64% and ended at 1640.35 whereas Tatapower was the top loser with 3.53% to end at 1300.15.
SBIN was the turnover topper by traded value and Unitech was the top traded stock on NSE today.
Advance Decline Ratio was very poor in the ratio of 4.32:1 as 1133 stocks declined and 262 stocks gained today on NSE.
Major Global Indices :
Hang Seng : -627.88
Nikkei : +92.80
FTSE : -37.84
CAC : -33.93
DAX : -18.76
Dow Futures : -61.00
Nasdaq Futures : -11.50
23 Nov 2010 Morning Market Updates 08:50
Daily Recommendations :
Note : Follow Buy recommendations in Positive market bias and v.v.
Buy ABB Abv 860 sl 854 T 876
Buy Apil Abv 710 sl 704 T 722
Buy Bajaj-Auto sl 1580 T 1630(P)
Buy Bhel sl 2230 T 2350(P)
Buy HDFC sl 715 T 729
Buy IVRCLInfra sl 123 T 144(P)
Sell Bhartiartl sl 342 T 330/326
Sell ICICIBank Below 1140
Sell Chennpetro Below 230
Please conside sl on spot closing basis.
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Discliamer :
Daily blogs have been prepared by the Research Division of Integrity Financial Consultants Pvt. Ltd.(IFCL),Pune, India and is meant for use by the recipient only as an informative. Nothing on this blog/website is intended or should be construed as investment advice. It is intended to be used for informational purposes only. This document is not to be reported or copied or made available to others without prior permission of (IFCL). It should not be considered or taken as an offer to Buy or Sell or a solicitation to Buy or Sell any security. These views alone are not sufficient and should not be used for the development or implementation of an investment strategy. It should not be construed as an investment advice to any party. All opinions and estimates included here constitute our view as of this date and are subject to change without notice. The information contained in this report other than the recommendation(s) has been obtained from sources that are considered to be reliable. However, iNTEGRITY has not independently verified the accuracy or completeness of the same. Neither iNTEGRITY nor any of its affiliates and/or its business associates and/or its directors and/or its employees accept any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well as the market related investments are subject to market risk and volatility. The suitability or otherwise of any investments will depend upon the recipient's particular circumstances and, in case of doubt, advice should be sought from an independent expert/advisor. Either (IFCL) and / or its affiliates and / or its business associates and / or its directors and / or its employees and / or its representatives and / or its clients and / or their relatives may have position(s), make market, act as principal or engage in transactions of securities of companies referred to in this report and they may have used the research material prior and / or after to publication. The information shared in this blog may be and or may not be 100% perfect as it is being shared from many sources. iNTEGRITY and / or its affiliates and / or its business associates and / or its directors and / or its employees and / or its representatives and / or its clients and / or their relatives do not take any type of responsibility if reader or recommendation(s) follower will face any losses or liabilities because of our recommendations; market risk will be always there while and whenever concerned parties enter the stock market by any means.It is recommended for the recipients to take their decisions according to re-verification of the shared information. No arguments and / or claims and / or objections will be entertained. Similarly, iNTEGRITY and / or its affiliates and / or its business associates and / or its directors and / or its employees and / or its representatives and / or its clients and / or their relatives will not take any assurity about our given recommendation(s) about its success. Sole discretion will be most recommended for readers and/or subscribers and/or followers and/or information receivers and/or investors and/or traders.
Dear Readers/Clients/Investors/Subscribers, as per many requests from our readers and subscribers, mentioning the Term "Open Interest" OI in short. Hope it will help you for your desired purposes.
Open Interest & Its Interpretation :
Open Interest is the total number of outstanding contracts that are held by market participants at the end of the day.
It can also be defined as the total number of futures contracts or option contracts that have not yet been exercised (squared off), expired, or fulfilled by delivery.
Open interest applies primarily to the futures market. Open interest, or the total number of open contracts on a security, is often used to confirm trends and trend reversals for futures and options contracts.
Open interest measures the flow of money into the futures market. For each seller of a futures contract there must be a buyer of that contract. Thus a seller and a buyer combine to create only one contract.
Therefore, to determine the total open interest for any given market we need only to know the totals from one side or the other, buyers or sellers, not the sum of both.
The open interest position that is reported each day represents the increase or decrease in the number of contracts for that day, and it is shown as a positive or negative number.
How to calculate Open Interest
Each trade completed on the exchange has an impact upon the level of open interest for that day.
For example, if both parties to the trade are initiating a new position ( one new buyer and one new seller), open interest will increase by one contract.
If both traders are closing an existing or old position ( one old buyer and one old seller) open interest will decline by one contract.
The third and final possibility is one old trader passing off his position to a new trader ( one old buyer sells to one new buyer). In this case the open interest will not change.
Benefits of monitoring open interest
By monitoring the changes in the open interest figures at the end of each trading day, some conclusions about the day’s activity can be drawn.
Increasing open interest means that new money is flowing into the marketplace. The result will be that the present trend ( up, down or sideways) will continue.
Declining open interest means that the market is liquidating and implies that the prevailing price trend is coming to an end. A knowledge of open interest can prove useful toward the end of major market moves.
A leveling off of open interest following a sustained price advance is often an early warning of the end to an uptrending or bull market.
Open Interest - A confirming indicator
An increase in open interest along with an increase in price is said to confirm an upward trend. Similarly, an increase in open interest along with a decrease in price confirms a downward trend. An increase or decrease in prices while open interest remains flat or declining may indicate a possible trend reversal.
The relationship between the prevailing price trend and open interest can be summarized by the following table.
Price Open Interest Interpretation
Rising Rising Market is Strong
Rising Falling Market is Weakening
Falling Rising Market is Weak
Falling Falling Market is Strengthening
