It was a poor opening for the week as Nifty slipped and closed below 5700. Banks and RIL weighed heavily on the indices. Banks in particular were the victims of nervous unloading before the RBI policy and downgrades of PSU banks by Morgan Stanley further aided the negative sentiments. SBI lost around 4% while deep cuts were seen in Bank Of India, Vijaya Bank, Canara Bank, Union Bank, Allahabad Bank, Uco Bank and PNB. Only Indian Bank and IOB managed top buck the overall trend. In fact, IOB was the biggest gainer amongst the F&O counters gaining over 5% with most of the gains coming in the last 40-45 minutes. RIL continued to drift lower and lost another 2%. Cairns and Bharti did manage to support the falling indices but didn’t have any support from other index constituents. Few others that were amongst the gainers were Chambal Fert, HPCL, Unitech, Tata Power, Sintex, Alok and GSPL. Overall, the breadth was poor as declining counters outnumbered the advancing ones by a good margin.
Nifty closed below 5700 for the first time in more than a month and also made a new recent low at 5687. Things continue to look a bit negative as Banking index has also given a short term breakdown below 11450. The RBI policy could set the tone in the short term and more than 25bps rise in policy rates could aid the bearish sentiments. Many banking counters have seen breakdown on daily charts and the volumes have also been on the higher side. OMCs are showing positive intent for past few sessions and HPCL and IOC have seen breakouts on daily charts. More short term upside is likely if they sustain above Rs 343( IOC) and Rs 383( HPCL). Power Grid is interestingly poised and could be a breakout candidate if it moves past Rs 107.50. Some other that look positive are Sintex, Voltas, Sesa Goa, Cipla( above Rs 317), United Spirits( above Rs 1055) and Jet Airways.
Nifty has immediate support around 5660-70 and then around 5590-5610 while resistance is seen around 5745-50 and then around 5790-5810.
No comments:
Post a Comment