BSEIndia: All Stock Market News: [sharetrading] Anagram's Weekly Watch [1 Attachment]

Thursday, December 24, 2009

[sharetrading] Anagram's Weekly Watch [1 Attachment]

[Attachment(s) from ekam ber included below]

Anagram's Weekly Watch

A FANTASTIC CHRISTMAS RALLY

From a gloomy start to a 19 month closing high. That's the market for you this week. Taking cue from the previous week, market started on a dismal note this Monday. Confident bears had piled up short positions as Nifty, after failing to cross 5180 mark, gradually drifted lower and easily broke the psychological support of 5000 even as US and European markets were trading at their intermediate highs. The shorting was evident by outstanding open interest at 5000 and 5100 calls. Then came the big day. Finance Minister, Mr. Pranab Mukherjee on Wednesday said that Indian economy is all set to grow by 7.75% this fiscal. He also said that sustaining high economic growth remains a priority for the government and that the government will wait until the February 2010 budget to consider withdrawing some of the fiscal stimulus measure. This triggered a huge short covering rally and Benchmark indices registered their biggest single day gain since 4^th November to close at the striking distance of the intermediate highs. Finally, on Thursday, which was the last trading day of the truncated week, Nifty made a fresh 2009 high of 5197.90. Sensex and Nifty closed at the highest level since 16^th May 2008 and 5^th May 2008 respectively.

Derivative expiry of the December series will be the key event to watch out for next week. Overall rollover so far has been 36%, as against 31% for the comparable period last month and 3 months' average of 29%. Among the sectors, Cement and Metal have seen the highest rollover while Sugar has seen the least rollover. December 5200 call has not seen any significant reduction in open interest and is having the highest open interest among all the strikes which in turn indicates that expiry might be around these levels. Next week too will be a truncated week as markets would be shut on Monday and Friday. MERRY CHRISTMAS AND HAPPY HOLIDAYING.