"It is not the strongest of the species, nor the most intelligent that survives, but one that is the most adaptable to change" - Charles Darwin.
The domestic indices fell despite of strong Asian markets as selling pressure was witnessed in the index heavyweights. Reliance Industries led the decline as the investors speculated that the company's quarterly profit growth would slow amid delays in increasing natural gas output. Other heavyweights like Larsen & Toubro, ICICI Bank and Hindustan Unilever also led the fall. The European stocks turned in the red erasing its early gains, which also fuelled the decline. The Sensex and the Nifty breached the crucial levels of 18000 and 5400 respectively ahead of July series F&O expiry.
The Nifty futures opened in the positive territory on Wednesday and traded flat for half the trading day. However by midday, the weakness in the market heavy weight, Reliance, started to affect the market as a whole and the market returned to the middle of the earlier narrow trading band between 5360 and 5417. The Nifty futures closed at 5393 for the day.
The Q1 numbers announced by Reliance despite being 32% higher disappointed the market pundits after its guidance to maintain gas production at 60 mmscmd (million standard cubic metres of gas a day) for the next 3-4 quarters and the company’s lower-than-expected Q1FY11 GRMs. Industry experts seemed further concerned that it would take the firm longer to increase gas production at the KG-D6 block, off the east coast. The stock fell 3.1 percent, the most in the last three months.
FOR TODAY: At present, most Asian markets are trading in Red. European markets (FTSE, DAX) ended in Red. CAC ends the day with minor green yesterday. SGX Nifty trading around 8 points down at 5385. All indicators from chart also showing some negative divergence indicates Indian Market may open flat around 5387-5389, probably try to trade around yesterday's closing zone 5394 area. Being expiry day, we may see huge volatility. Open Interest changes indicates the expiry may end near 5400 area, probably between 5385-5415.
However, any movement below 5370 will bring Nifty future around 5350/5339. On the upside, if 5417 crosses, we may even see 5440 level today itself.
