Pre Open Thoughts: Climbing the Ladder!!

Pre Open Thoughts: Climbing the Ladder!!

Ø The ladder of success is best climbed by stepping on the rungs of opportunity. There is a likelihood that the ladder that market has climbed in the month of January is going to continue in the coming days and could head much higher, provided the FII flows remain strong and there are no major nasty surprises.

Ø With the F&O expiry due this week, market will witness some positive rollovers across the board. Rollover in the Bank Nifty as of Friday stood at ~31%, while in Nifty Futures it was at ~43%.

Ø As per our systems and technically also the Nifty nearly accomplished its upside potential of 5100. Banks will be in focus ahead of RBI policy review this Tuesday. Public sector banks could gain amid reports of re-capitalization by the Government.

Ø This morning, we are looking at another positive opening, spurred by some overnight gains in the ‘western’ markets. US indices closed positive and European indices closed negative on hopes that will Europe finally get a handle over its credit crisis. Quite a few important Asian markets are shut today on account of the Chinese New Year. Japanese shares are subdued. For India, it is a truncated trading week. Indian markets will remain shut on Thursday on account of Republic Day.

Ø So to conclude over all the risk trade is back in vogue, at least for the time being. Amid all the little euphoria we would still advise to stay alert and don’t get carried away.

Ø Reliance Industries Ltd. will be in focus after the company said it will repurchase as much as 104.4 billion rupees of shares.

Results Today: LnT, Maruti, Sterlite, Gail, Colgate, Idea, KotakBank, KPIT, FederalBank, Torrent, Geometric, JyothyLabs, DBCorp, ShreeCement, Vardhman Textile, LakshmiMachine, Phoenix Mills;

Rollover Snapshot:

• NIFTY rolls picked up on E-3 day remained above 3M & 6M averages whereas Market wide rolls remained slightly below 3M and 6M averages.

• On the Sectoral front TEXTILE, RETAIL and AUTO shown higher rollovers; Whereas Chem & Fert, MEDIA and PHARMA were laggards.

• Stock specific COREEDUTEC and McLeod RUSS shown above average rollovers whereas RUCHISOYA and BRFL were laggards.

Curr Mnth 3M Avg 6M Avg

Mkt Wide 33.36% 35.91% 34.39%

NIFTY 43.36% 36.38% 30.81%