Market may see volatile swings ahead of the expiry of April 2008 derivative series on Thursday, 24 April 2008. As per reports, Nifty rollover from April 2008 series to May 2008 series stood at 40% while marketwide rollover was 25%, as on Tuesday, 22 April 2008.
The near-term market will be driven by the quality of earnings rolled out by corporates in the coming days. Important corporate numbers due today, 23 April 2008, are ACC, HDFC Bank and Maruti Suzuki India. Aggregate results of 204 companies showed 20.80% rise in net profit on 33.40% rise in net sales in Q4 March 2008 over Q4 March 2007. On year on year basis, there was 38.80% rise in net profit on 22.40% rise in net sales in FY March 2008 over FY March 2007.
US markets settled lower yesterday, 22 April 2008, on record crude oil prices and disappointing earnings from technology, health-care and consumer companies. The Dow Jones industrial average was down 0.82% at 12,720.23. The Nasdaq was down 1.29% to 2376.94. The S&P 500 index lost 0.88%, at 1,375.
Asian markets were trading firm today, 23 April 2008. Nikkei (up 0.69% at 13,640.65), Hong Kong's Hang Seng (up 0.58% at 25,085.01), Singapore's Straits Times (up 0.44% at 3,201.26), South Korea's Seoul Composite (up 0.94% at 1,804.21) and Taiwan's Taiwan Weighted (up 0.03% to 9,038.25) edged higher.
The market is likely to witness sideways movement on the back of a strong intra-day volatile moves. Stocks across sectors along with heavyweights may gyrate sharply. Overnight weakness in the US indices and strong ongoing Asian markets in mornings trades may further confuse the investors' sentiment. On the technical side, the Nifty has a stiff resistance at 5139 and the downside cap at 4924, while the Sensex could test higher levels of 16882 and has a likely support at 16682.
Among the major results, Aventis Pharma, Bajaj Hindustan Ltd, Contain Corporation, Crisil, Educomp, Indian Bank, Kisloskar Oil, OBC, Polaris and SKF India are expected to announce their quarterly numbers.
US indices registered losses on Tuesday. While the Dow Jones dropped 105 points to close at 12720, the Nasdaq fell 31 points at 2377.
Except HDFC Bank, which was marginally up by 0.49%, all the Indian ADRs on US bourses ended in the red. Satyam Computer was the biggest looser and dropped 8.24% while Patni Computer was down by 6.20%, Rediff was down 5.60%, Wipro, Infosys, MTNL, ICICI Bank, VSNL and Tata Motors lost over 1.4% each.
Crude oil prices in the US market gained on Tuesday, with the Nymex light crude oil for May delivery gaining by $1.89 to close at $119.50 a barrel in the commodity space, the Comex gold for June series gained $7.60 to settle at $925.20 a troy ounce.
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