STOCK MARKET NEWS

The market ended in deep red with almost all scrips ended in losing streak. All the analysts and market traders feel of almost the market may crash to its year low. Quarell of markets get worse screams from every quarter. They countdown the reason as ,

1. Steep rise in Crude oil price arond the globe, which makes the inflation figures a more worry,

2. Political uncertainity about the central govt and the nearby parliment elections,

3. Rupee fall over dollar,

4. Petrol price rise in this weekend which causes confusion among all quarter from consumer to the oil companies, with Communists opposing ,

5. Technical analysts comment of breaking every support level.

In the next couple of sessions the markets may witness some selling pressure from all quarters , with the top players of Nifty already at three month low, a pullback rally to 4960 is in the cards.

Reliance may look a little worry with it closing above crucial 2525 to take it to positive note.

Overall the Nifty Future will have a crucial support of 4671, 4645. Once crossess 4824 , it may even touch 4854 , tomorrow 3rd June.

Moving Averages are particulary useful in identifying the direction of an uptrend or downtrend of stocks and markets in general. They are based on the previous data and hence are generally referred to as lagging indicators which help us in locating the trend and following on in the trend . Since they do not allow you to predict the trend, you have to use other technical indicators in conjunction with them during trading.

Generally, the most common way to trade with the Moving averages is this - If the price crosses above the moving average, it means that a buying interest has set in - and thus indicates a buy signal. Similarly when the price crosses down the moving average, it means that a selling pressure has set in - thus indicates a sell signal.

Although it helps in indicating the current trend, it does not indicate for how long this trend would continue or when does the reverse trend begin. So traders should be cautious about this when using the moving averages for planning trades. It is also important to consider the volume for the security in question before trading. Sporadic movements with low volumes can generate erratic signals.

Market opened with a positive note but corrected later sharply and ended at days low of the first day of week. Nifty ended below 4750 levels. Biggest downswere realty, PSU, metal, power, banking, capital goods, technology and oil stocks. European markets also crashed, which added to negative sentiments. Market breadth was very weak. Midcap and small cap stocks hit badly.
Total turnover traded by the markets stood at Rs 51868.63 crore including Rs 11816.96 crore from NSE Cash segment, Rs 35257.77 crore from NSE F&O

F&O Snapshot

Nifty witness fresh short positions through out the day
Nifty Fut discount at 27 pts; add 35 lakh shares in OI
Momemtum stocks witness cut in open Int; fresh short position seen in large cap stocks
Nifty 4700 put adds 3 lakh shares ;Nifty 5000 put sheds 1.2 lakh shares
Nifty 4700 call adds 1.9 lakh shares, Nifty 4800 call adds 3.2 lakh shares
NSE F&O Turnover at 35257 cr lower than the last week’s avg

Asia Today

European market in the red as renewed reports that credit losses are spreading to European banks
Reports that Bradford & Bingley, the U.K.'s biggest mortgage lender, will raise more capital due to furtehr bad-debt provisions
Thailand down 2.8%, Kospi, Straits Times end marginally in teh redTaiwan up 1.2% on back of FIIs inflow
Hang Seng up 1.2%, Shanghai up 0.75%