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Markets likely to get a sluggish start of the F&O Expiry day on feeble global cues

29 Dec 2011 Evaluate

Indian markets swayed with the tune of global markets and plunged on Wednesday. Today, the start is likely to be pretty weak and volatility to persist throughout the session, as it being the F&O series expiry day. Early trades can see Nifty around 4650 levels, though later trade may witness some short covering but profit-booking at higher levels too cannot be denied. Though, there is no any major cue that could give direction to the markets but the traders will be eyeing the weekly food inflation data and buzz of re-union among the two Ambani brothers. There will be some jitters in the market after the Sebi banned three merchant bankers and seven recently-listed firms and their promoters, accusing them of misusing IPO proceeds, performing shoddy due-diligence process, and aiding promoters to prop up prices on listing day. The seven firms include Bharatiya Global Infomedia, Tijaria Polypipes, Taksheel Solutions, RDB Rasayans, Onelife Capital Advisors, Brooks Laboratories and PG Electroplast. Almondz Global Securities and Atherstone Capital are the two other bankers besides PNB Investment Services that have been barred.

US markets suffered sharp plunge on European jitters as in a latest worry to the European lenders, the Europe’s central bank reported that its overnight deposits hit another record. Though, Italian government was able to place two successful auctions of debts raising $11.8 billion. Meanwhile, the Asian markets have made a soft start for the third successive session after euro slumped to a decade low against the yen. Korean markets continue to remain in somber mood as the country’s industrial production fell for a second straight month.

Indian frontline equity indices witnessed severe pounding a day ahead of December series futures and options expiry, leading the key indices to undo all the good work done in Monday’s session and slip back to the important psychological 4,700 (Nifty) and 15,700 (Sensex) levels. Selling pressure intensified across the board since late morning trades and the benchmarks got battered by close to percentage point in the session. The Asian peers too exhibited gloomy trends after disappointing Japanese industrial production and South Korean manufacturers’ confidence data underscored the fact that the global economic recovery still remains uncertain and fragile. Local market participants also overlooked the optimistic trends that European counterparts displayed. Earlier on Dalal Street, the benchmark got off to a soft opening as cues from the Asian markets weren’t inspiring amid a slew of economic data announcements which only underscored uncertainties over the global outlook. Thereafter, the bourses treaded on a southbound journey and kept declining through the morning trades. There was some recovery seen in the markets after the frontline indices hit the lowest levels in early afternoon trades but profit booking at higher levels pulled them back around the day’s lows. However, some short covering in the last leg of trade ensured that the bourses settle off the day’s lows. Moreover, the broader markets too settled with large cuts of over a percent in the session and performed in tandem with their larger peers. On the BSE sectoral space, barring the Power and Capital Goods counter which ended in green, all other indices went home with losses. The metal pocket got severely punished in the session while rate sensitive counters like Banking index along with the Oil & Gas pocket too were not spared by investors. Finally, the BSE Sensex lost 146.10 points or 0.92% to settle at 15,727.85, while the S&P CNX Nifty declined by 44.70 points or 0.94% to close at 4,705.80.

Crude prices snapped their six day’s gaining streak and lost around two percent on Wednesday, the European concerns weighed on the crude prices after a surge in the European Central Bank’s balance sheet to a record, highlighted the growing risks of the region’s debt crisis and threatening fuel demand. Though, tensions with Iran, continued to keep a floor under prices, and traders are awaiting signs of what is next. Tehran said on Tuesday it would stop oil transiting through the Strait of Hormuz if sanctions were imposed on its crude oil exports because of its nuclear ambitions.

Benchmark crude for February delivery settled down $1.98, or 2%, to $99.36 or a barrel on the New York Mercantile Exchange. In London, Brent crude settled down $1.71, or 1.6%, to $107.56 a barrel on the ICE.

US markets plunged on Wednesday on getting worrying news from the ECB that said that its overnight deposits hit another record and continent's banks parked a record $590.72 billion with it overnight. All the major indices lost over a percent with materials and energy companies leading the declines. The S&P again fell back into negative territory for the year. Trading remained very quiet in a holiday-shortened week.

The worrying news from the ECB overshadowed two successful auctions of Italian government debt. Italy was able to pay much lower borrowing rates than it did in auctions last month.

The Dow Jones industrial average fell 137.82 points, or 1.12 percent, to 12,153.53. The S&P 500 lost 15.65 points, or 1.24 percent, to 1,249.78. While, the Nasdaq composite declined by 24.84 points, or 1.33 percent, to 2,590.36.

SEBI Registered: Investment Adviser - INA000013323

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
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Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
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SEBI Registration Number:	INA000013323 Validity - May 16, 2019 - Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Warning: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Disclaimer: Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provides any assurance of returns to investors.

Compliance Officer:

Name: Shrikant Jagtap

Email: shrikant.jagtap@moneyworks4me.com

Mobile No: +91 97638 00745

Grievance Officer:

Name: Mukta Vaze

Email: mukta.vaze@moneyworks4me.com

Mobile No:+91 98609 19463

Principal Officer:

Name: Atharva Bhide

Email: atharva.bhide@moneyworks4me.com

Mobile No:+91 91758 99463

SEBI regional/local office address -

Plot No. C 4-A , G Block, Near Bank of India, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra 400051

Address:

The Alchemists Ark Pvt. Ltd., B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045

Data provided by Accord Fintech Pvt. Ltd.

*Color code for outperformance consistency

*Number is average 3 year rolling returns

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