Get ready for boredom

It was an action packed week with all the drama one could ask for US President Barack Obama won the US elections for a second term with a reasonably comfortable margin The election results Indiarsquos largest takeover deal by Diageo of United Spirits and corporate results from individual companies made their stocks move in an unpredictable manner All this also ensured that the markets moved in a volatile manner with the BSESENSEX losing 7177 points or 038 per cent to close at 1868368 points The NSENIFTY lost 1145 points or 020 per cent to close at 568625 points The broader indices like the BSE500 BSE200 and BSE100 were marginally down losing 003 per cent 005 per cent and 005 per cent respectively The BSEMIDCAP and BSESMALLCAP closed on a positive note gaining 023 per cent and 007 per cent respectively YES WE CAN US President Barack Obama spoke on the economy in the White House in Washington DC on November 9 2012 In the statement which was televised Obama laid out his position regarding the brewing yearend budget and spending crisis PicAFP In sectoral indices the top gainers were BSEREALTY up 511 per cent BSEFMCG up 179 per cent and BSEHEALTH up 049 per cent The losers included BSECAP 221 per cent BSEOIL 217 per cent BSEMETAL down 175 per cent and BSEPSU down 088 per cent In individual stocks the gainers were JampK Bank up 636 per cent Tata Motors up 393 per cent HDFC up 352 per cent and Hind Petro up 341 per cent The losers included Tata Communications down 455 per cent ONGC down 324 per cent LampT down 322 per cent and Hero MotoCorp down 190 per cent Results from companies dominated the week and there were enough of good and bad results to keep the markets going SBI declared a 30 per cent growth in net profits but simultaneously also reported a hefty rise in slippages of R8400 crore It also provided a lower provision coverage ratio as at the end of September quarter The stock slid R88 or 392 per cent post the results Tata Steel reported a disastrous set of numbers with a consolidated net loss of R364 crore against a net profit of R243 crore a year ago The share lost R13 or 322 per cent on Friday Tata Motors reported good results and the share was a gainer ONGC results were poor on the back of a substantial rise in the subsidy amount that the company had to share with Oil Marketing Companies OMC The share price of ONGC fell sharply and closed at R25710 a loss of R860 or 324 per cent The government distributed R30000 as subsidy to the OMCs on the eve of their results and because of that all three companies reported profits compared to losses in the year ago period World events In global news the European Central Bank ECB and Bank of England BOE kept interest rates unchanged The US elections saw concerns of the lsquoFiscal Cliffrsquo getting exacerbated with the Republicans winning the majority in Congress This issue saw the Dow Jones losing ground during the week down 278 points or 212 per cent FIIs continued to be buyers during the week with purchases of R1494 crore while domestic institutions were net sellers of R598 crore The Indian Rupee continued to depreciate closing at 5475 for the week against the previous weekrsquos close of 5381 The long awaited and inevitable DiageoUnited Spirits deal finally happened Once the open offer is fully subscribed Diageo would own 534 per cent of the company and would have paid R11166 crore The stake sale would happen at a price of R1440 which is at a premium of R80 or 588 per cent Low activity The week ahead sees two trading holidays with just a threetrading daysweek markets would be lacklustre lsquoMuhuratrsquo trading for Samvat 2069 would be held on Tuesday November 13 between 345 pm and 5 pm followed by a holiday on Wednesday This would break the momentum and with quite a few people using the break for holidays volumes and interest in the market would be on a low key The market is at an interesting juncture but a breakout or breakdown is unlikely to happen at this level simply because of the low level of activity likely next week The week ahead would take cues from global markets particularly the US The BSESENSEX has support at 18595 points then at 18475 points then at 18357 points and finally at 18251 points It has resistance at 18833 points then at 18955 points then at 19071 points and finally at 19202 points The NSENIFTY has support at 5658 points then at 5614 points then at 5584 points and finally at 5555 points It has resistance at 5732 points then at 5769 points then at 5806 points and finally at 5849 points Arun Kejriwal is founder of the Mumbaibased advisory firm Kejriwal Research amp Investment Services Pvt Ltd Readers are invited to read more about these and other issues on his website httpak57in Disclaimer No financial information whatsoever published anywhere in this newspaper should be construed as an offer to buy or sell securities or as advice to do so in any way whatsoever All matter published here is for educational and information purposes only and under no circumstances should be used for actual trading or making investment decisions Readers must consult a qualified financial advisor prior to making any actual investment or trading decisions based on information published here Any reader taking decisions based on any information published here does so entirely at his or her risku00a0