Foreign Institutional Investors (FIIs) were net sellers in the equity segment worth Rs 9.21 billion on both the BSE and the NSE on Jan. 31, as per provisional data available at NSE. They bought equities worth Rs 25.99 billion and sold equities worth Rs 35.20 billion.
The key benchmark indices extended last three days' losses to hit five month closing lows as world stocks fell on concerns turmoil in Egypt could spread to other Middle East countries.
The BSE 30-share Sensex was down 68.21 points or 0.37% to 18,327.76, its lowest closing level since 3 September 2010. The index lost 0.88 points at the day's high of 18,395.09 in late trade. The index shed 357.49 points at the day's low of 18,038.48 in morning trade, its lowest level since 1 September 2010.
The S&P CNX Nifty was down 6.25 points or 0.11% at 5,505.90, its lowest closing level since 3 September 2010. The Nifty hit low of 5,416.65 in morning trade, its lowest level since 1 September 2010. The BSE Mid-Cap index fell 0.44% and the BSE Small-Cap index declined 0.8%. Both these indices underperformed the Sensex.
The market breadth was weak. On BSE, 1720 shares declined while 1187 shares advanced and a total of 101 shares remained unchanged. Among the 30-member Sensex pack, 17 declined while the rest rose.
BSE clocked turnover of Rs 3546 crore, lower than Rs 3904.41 crore on Friday, 28 January 2011.
Clive McDonnell, Head - Equity Strategy of BNP Paribas says that he expects the dollar to strengthen in 2011 and, therefore, sees limited FII flows, given the stronger dollar.
Lalit Thakkar, MD-Institution, Angel Broking says, the Nifty may bottom out at 5,350-5,400 level. He feels that interest will come back from the retail investors.
Trader Atul Suri sees support for the Nifty at the 5,300 level; an important support level for the market. He believes the current downturn is only a corrective phase as there is a crisis of confidence in markets now.
With a more optimistic view, however, Suri added that the Nifty could face some resistance at 5,700 on the upside and feels confidence could re-emerge in the market if the Nifty breached 5,700.
Punita Kumar Sinha of the Blackstone Group said Indian markets were not yet near its absolute low and sees chances of further correction in valuation.
IIFL (Amar Ambani): “There are a few market observers who see the Nifty cracking a bit further. That may or may not materialise but the short point is betting on a swift turnaround at this juncture could be foolhardy. Having said that, another correction of 5% or so will certainly make the Indian market attractive from a medium to long-term perspective”.
BONANZA PORTFOLIO (Avinash Gupta): “Nifty has remained below 200 days simple moving average. The market may consolidate in a range of 5,400 to 5,700”.
GEOJIT BNP PARIBAS FINANCIAL SERVICES: “Nifty today managed to close above the 5,500 mark after making a low of 5,416. The undercurrent is still negative but as the markets are slightly oversold, we may see minor pull back tomorrow. Investors are advised to be cautious while carrying over long positions as the market is still to give a turnaround indication. Nifty has the 5,400 and 5,348 support intact”.
ANGEL BROKING: “Markets witnessed a gap down opening in the wake of weak global cues but recovered from day’s low, to close marginally in red. On the daily chart, we are observing a “Spinning top” which suggests that the prior downtrend is losing momentum. In the coming trading session, if indices trade convincingly above 18,400/5,530 levels, then they are likely to test 18,530-18,685/5,560-5,600. On the downside, 18,120-18,038/5,450- 5,416 levels may act as support for the day”.
CANARA BANK SECURITIES (CANMONEY): “Technically, Nifty exhibited a very busy movement in today’s session. After breaching the vital support of 5,500 and 5,460, Nifty managed to close above 5,500; this may infuse some strength in the buyers. Based on candlestick Charts, despite recovery, Nifty has formed higher lows and lower highs, which is a bearish signal and continuous selling at higher levels of the indices is capping the gains. In today’s session, Nifty closed below its 9, 14, 50 and 100 day’s SMA level placed at 5,353, 5,683, 5,879 and 5,966 levels; these levels may act as new ranges, in coming sessions. VIX for the day closed at higher level of 23.41% and indicating more than average volatility in market in the forthcoming sessions. RSI (14) for the day was at 30.05 levels and MACD was below the signal line, thus combined together they are giving the signals that market is in oversold status and may witness some limited upsurge amidst ranged movement in coming session”.
BONANZA PORTFOLIO (Puneet Kinra): “Nifty showed recovery from lower levels, However, Nifty could not sustained above 5,530 levels, which shows Bulls have to try hard in order to take control. If Nifty manages to maintain above 5,530 levels then recovery may be seen in our market else selling pressure may resume. Nifty`s short term trend is down and Global indices may play vital role in sentiment preparation”.
“For daily purpose, the trend deciding level is at 5,510-5,530. If Nifty shows strength above 5,530 level, then rally to 5,600/5,650/5,750 levels may be seen. If Nifty does not show strength above 5,510 levels then selling pressure till 5,450/5,400/5,350 levels may also be seen”.
GABA FINANCIAL ADVISORS (Prakash Gaba): “The support for the Nifty is at 5,400-5,360 and resistance at 5,625. For Sensex, the crucial support on the downside is at 17,926 and resistance at 18,880”.
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