Negative ending

The previous week behaved exactly as expected with the rally continuing for the first two days and a sharp fall in the next two Friday was a neutral or flat day and last week ended negative The BSESENSEX lost 18203 points or 089 per cent at 2021739 points The Nifty lost 6070 points or 100 per cent to close at 599545 points The broader indices like the BSE100 BSE200 and BSE500 lost 097 per cent 090 per cent and 080 per cent respectively The petroleum minister Veerappa Moily has once again reiterated that diesel prices would be deregulated before May 2014 maintaining that there would be no onetime increase in prices The BSEMIDCAP gained 022 per cent while BSESMALLCAP gained 064 per cent The top sectoral gainer was BSECAPGOODS up 205 per cent Other gainers included BSEREALTY up 041 per cent and BSEOILampGAS up 026 The losers were led by BSECON DURABLE down 226 per cent Other losers included BSE AUTO down 197 per cent and BSE HEALTHCARE down 187 per cent Stocks In individual stocks the biggest gainer was Jindal Steel up 389 per cent Other gainers included Financial Technologies up 1370 per cent and MCX 820 per cent Just Dial was up 1197 per cent and this stock is currently going through a wild phase Historically this kind of price behaviour happens when a stock is being distributed The losers were led by Sesa Sterlite down 874 per cent The other losers included Bajaj Auto down 685 per cent and Canbank down 667 per cent Purchases Foreign Institutional Investors FIIs continued their purchases and bought shares worth Rs 1924 crore while domestic institutions sold shares worth Rs 813 crore The difference in the FIIs trend has been that in the last three trading days of last week they have been net neutral and if this become a trend it could be worrisome The rupee was under severe pressure after a very smart rally but yet managed to close with a minor gain of 24 paisa or 038 per cent to close at Rs 6287 Prices The Dow Jones continued to gain and was up 103 points or 064 per cent to close at 1606477 points Gold prices have been falling internationally and closed at 1243 an ounce quite close to the low made in June of 1211 In India the price of gold is Rs 31000 per 10 grams substantially higher than the Rs 25000 which we had seen in June courtesy the periodical import duty which has been levied and the depreciating rupee which has fallen from 5556 to the current Rs 63 In other news hydro power producer NHPC opens its buyback offer at Rs 1925 for 123 crore shares at a cost of Rs 2368 crore on November 29 These shares were issued at Rs 36 in August 2009 The buyback is being done so that the government is able to tender shares and raise some money from divestment or disinvestment Pfizer announced the merger of Wyeth with itself in a ratio of 10 shares of Wyeth to get 7 shares of Pfizer This will bring the combined entity into the top ten pharma companies in the country Oil explorer Cairn India has also announced a buyback terms and conditions of which are be known in a board meet to be held on Tuesday November 26 Petroleum The petroleum minister Veerappa Moily has once again reiterated that diesel prices would be deregulated before May 2014 He has also maintained that there would be noone time increase in prices He was speaking at a CII conference in Mumbai recently One fails to understand how a price hike of Rs 10 per litre can be achieved with just about four months before the model code of conduct is enforced Simple mathematics says that 050 per month and Rs 10 to be recovered means 20 months and this is assuming that neither crude prices nor the rupee change The current underrecoveries of Rs 10 per litre are killing the PSU companies whether it is the OMCs like IOC HPCL and BPCL or our oil exploration companies ONGC and OIL Maybe it was just to assure captains of industry and potential investors when IOC is again divested Well nothing much is likely to happen on this front Ahead The beginning of this week is likely to see some up move October series futures had expired at 616435 points The current market is lower by 169 points or 274 per cent Besides this GDP data for JulySeptember would be announced on Friday Key levels for the Sensex are 19910 and 20625 while they are 5915 and 6145 for the Nifty The support for the Sensex is at 20107 points then at 19925 points then at 19856 points then at 19675 points and finally at 19525 points It has resistance at 20357 points then at 20565 points then at 20735 points then at 20965 points and finally at 21150 points The Nifty has support at 5962 points then at 5908 points then at 5847 points then at 5805 points and finally at 5782 points It has resistance at 6039 points then at 6097 points then at 6147 points then at 6217 points and finally at 6303 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