The key benchmark indices declined marginally on low volumes, tracking weakness in European and Chinese stocks.
The BSE 30-share Sensex was down 44.73 points or 0.22% to 20,028.93. The Sensex rose 116.47 points at the day's high of 20,190.13 in mid-morning trade, but unable to hold the mood and declined 63.33 points at the day's low of 20,010.33 in late trade.
The S&P CNX Nifty was down 13.50 points or 0.22% to 5,998.10. The Nifty hit high of 6,045.75 in mid-morning trade, its highest level since 6 December 2010.
The BSE Mid-Cap index fell 0.17%. The BSE Small-Cap index advanced 0.21%. Both these indices outperformed the Sensex.
The market breadth was positive, having weakened from a strong breadth earlier in the day. On BSE, 1461 shares rose while 1399 shares declined and a total of 157 shares remained unchanged. Ten out of thirteen sectoral indices on BSE were in the red. Among the 30-member Sensex pack, 19 fell while the rest rose.
The BSE 30-share Sensex lost 44.73 points or 0.22% to 20,028.93, off close to 161 points from the day's high and up close to 19 points from the day's low. The 50-unit S&P CNX Nifty fell below the psychological 6,000 mark.
The food price index rose 12.13% while the fuel price index climbed 10.74% in the year to 11 December 2010, the latest government data showed. BSE clocked turnover of Rs 2678 crore, lower than Rs 2980.62 crore on Friday, 24 December 2010.
Sugar stocks rose as futures trading in sugar resumed in commodities markets today after a gap of one-and-a-half years.
Anil Dhirubhai Ambani Group's Reliance Communications (RCom) declined the most after elder brother Mukesh Ambani's Reliance Industries reportedly denied market talk it was planning to invest in RCom. The market rumour had helped drive RCom shares rally 10.5% on on Friday, 24 December 2010.
::VIEWS FROM DIFFERENT BROKING HOUSES::
BONANZA PORTFOLIO:
“The market is expected to consolidate in a range of 5,850/6,150. The market can be expected to be volatile as expiry of derivative contracts is due next Thursday”.
ANGEL BROKING HOUSE:
“Markets opened flat traded with positive bias in the early hour of the trade but were unable to sustain the gains which led the indices to close marginally in the negative territory. On the daily chart, we are witnessing a narrow range body formation which reflects indecisiveness prevailing at current levels. Hence, in coming trading session if indices convincingly trade above 20,115/6,020 levels then they are likely to test 20,160-20,217/6,050-6,070 levels. On the downside, 19,875-19,798/5,950-5,928 levels may act as supports for the day”.
GEOJIT BNP FINANCIAL SERVICES:
“Going forward the lackluster activities are likely to continue till the December expiry which is on December 30. Nifty will have resistance at 6,075. The support for the Nifty will be at 5,905. On the Nifty option segment open interest drop was seen at 5,900 and 5,800 call option December contract clearly shows weak undertone. We may see a weak trend tomorrow and more selling can be expected in metals and banking stocks”.
KARVY FINANCIAL SERVICES:
“The market will take cues from the global markets and is expected to open on a flat to positive note tomorrow. Trade long in Nifty if it holds above 6,000 levels with stop loss placed at 5,970 for targets of 6,050 and 6,080 levels”.
FAIRWEALTH SECURITIES:
“Indian market had a range bound session with IT and Healthcare stocks traded strong while metals and FMCG faced selling. The Sensex closed at 20,028, down 44 points from its previous close, and Nifty shut shop at 5,998, down 13 points”.
“In the next session, Nifty may get support around 5,957-5,988 while 6,040-6,070 may act as a resistance zone. Traders are suggested to trade in accordance with the range given. Breaching of range either side may decide the level. IT, auto and healthcare may again appear strong. Banking stocks may face selling at higher levels”.
::SOME CALLS::
WEEKLY STRATEGY: (ADITYA BIRLA MONEY):
Buy Tata Chemicals Ltd. for a target 420-430 with stoploss 380
Buy Cairn India above 340 for a target of 370-380 with stoploss 318
FAIRWEALTH SECURITIES (FNO & TECHNICAL CALL):
Buy ICICI Bank above Rs 1,142 with target of Rs 1,155-1,166 and stop loss of below Rs 1,130.
Buy Shriram Transport Finance Company above Rs 790 with target of Rs 810-840 and stop loss of Rs 770.
Buy Hindustan Oil Exploration Company above Rs 211 with target of Rs 220-225 and stop loss of Rs 203.
Buy NMDC above Rs 271 with target of Rs 276-281 and stop loss of Rs 266.
Sell Financial Technologies futures below Rs 872 for target of Rs 860-840 and stop loss of above Rs 884.
Buy Jindal South West Holdings Futures above 1,459 for target of 1,480-1,500 and stop loss of below 1,440.
Sell Nifty Futures above 6,000 for target of 5,972-5,950 and stop loss of 6,028.
Buy Bank Nifty Futures above 11,580 for target of 11,640-11,700 and stop loss of below 11,520.
FOR TODAY: European markets closed lower in extremely thin trading on Monday (December 27, 2010)) after China's interest rate rise over the weekend fueled concerns about the outlook for economic growth.
The Wall Street erased earlier losses and ended little changed on Monday as investors shrugged off a surprise weekend interest rate hike from China's central bank.
Asian markets were mixed in early trading as investors looked past China's rate hikes and stayed on the sidelines. SGX Nifty was trading mere 18.5 point higher, suggesting for a positive start on the Dalal Street.
Keeping in view of SGX Nifty which is trading around 20 points up, the market may open higher at the opening bell.
WATCH 5985-5987 LEVEL ON THE DOWN SIDE AND 6016-6020 LEVEL ON THE UP SIDE. ABOVE, 6016-6020, NIFTY FUTURE MAY AGAIN TOUCH 6060/6080 LEVEL AND ON THE DOWN SIDE, BELOW 5985-5987, IT MAY TOUCH 5960/5940 LEVEL.
