Markets opened on a steady note and Nifty did look like settling above 5500. Considering the fact that indices had to contend with a weak opening in Bharti after lower than anticipated profits Nifty did look like finding its feet just around the 5525-5550 zone. But, it was not to be as after trading listlessly in a tight zone Nifty began to lose ground during the mid session. The downtrend gained momentum from thereon as more and more stocks came under fresh bear assault. Most of the metal counters were weak as were the Realty counters. Heavyweights
like HUL, ICICI, HDFC, Infosys, Bharti , Sterlite , ITC and NTPC struggled and put the indices under immense pressure. The Cement counters continued to be under bearish spell and lost more ground. Hero Honda found buyers and was up more than 6% after management indicated that the company has been able to maintain good margins despite lot of different pressures. It was a decent day for RIL too as the stock was up almost 2% during the day before shedding almost half of its gains towards the close. BOI, Apollo Tyres, MRF, Kotak, United Phosphorous, Tulip, Lupin and Titan were some of the other gainers. But overall, it was another day of bears’
dominance as Nifty closed below 5450. Nifty extended its losing streak for 9th consecutive session and contrary to our expectations there was no support around 5475-5500. Even the so called ‘over sold’ counters did not find any technical rebound and capitulated further. Globally too the things are cooling off a bit as has been seen in the case of most commodities. FIIs remain heavy sellers and that is keeping our markets under lot of pressure. Technically, Nifty has closed below 5500 and now the range between 5575-5610 becomes a strong short term
technical barrier. Out of the few heavyweights mentioned yesterday only RIL and ONGC remain in some sort of positive territory and could support indices. Metal counters continue to look weak. Bhel has seen breakdown today and could target Rs 1940-50. Overall, it seems that one should wait for markets to settle down and find its bottom before looking for trades on the ‘long’ side. Nifty has immediate support around 5415-20 and then around 5365-5370 while resistance is seen around 5515-25 and then around 5590-5610.
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