THE FIIs WERE NET BUYERS WITH INVESTMENT WORTH 272.99 CR. (PROV. CASH MARKET FIG.).
The Sensex fell below the psychological 19,000 mark. The 50-unit S&P CNX Nifty fell below 5,700 level.
The key benchmark indices dropped nearly 1% as investors fretted over the possibility of more interest rate hikes by the Reserve Bank of India (RBI) to tame inflation. The central bank raised its lending as well as borrowing rates by a quarter-point to cool inflationary pressures at a quarterly policy review today, 25 January 2011. Interest rate sensitive banking, auto and realty stocks declined. The BSE 30-share Sensex was down 181.83 points or 0.95%, off close to 380 points from the day's high and up close to 5 points from the day's low. The index gained 189.71 points at the day's high of 19,340.99 in mid-morning trade, soon after the RBI's policy announcement. The index declined 201.84 points at the day's low of 18,949.44 in late trade.
The S&P CNX Nifty was down 55.85 points or 0.97% at 5,687.40.
The BSE Mid-Cap index fell 0.41% and the BSE Small-Cap index declined 0.35%. Both these indices outperformed the Sensex.
Current growth and inflation trends warrant persistence with the anti-inflationary monetary stance, the RBI said.
The market breadth was negative in contrast with strong breadth earlier in the day. The market breadth was negative compared with strong breadth earlier in the day. On BSE, 1687 shares declined while 1,212 shares advanced and a total of 110 shares remained unchanged. Among the 30-member Sensex pack, 19 declined while the rest rose.
BSE clocked turnover of Rs 3610 crore, higher than Rs 2906.36 crore on Monday, 24 January 2011.
VIEWS FROM DIFFERENT BROKING HOUSES:
GEOJIT BNP PARIBAS FINANCIAL SERVICES: “Being the January expiry, we may see highly volatile movements. For Nifty the major support is there at 5,615 and 5,585. One thing to note is that the Nifty futures have started to trade at a discount to the spot indicating weakness”.
BONANZA PORTFOLIO (AVINASH GUPTA): “The market is expected to be volatile in view of the expiry of derivative contracts due on 27th Jan. The consolidation process in a range of 5,550/5,800 is expected to continue”.
ANGEL BROKING HOUSE: “Markets opened higher but were unable to sustain the early hour gains which dragged down the indices to close in red. On the daily chart, we are observing that prices have taken resistance at the 20-day SMA which suggests further weakness. In coming trading session, if indices trade convincingly below 18,940/5,675 levels then they are likely to test 18,794-18,674/5,634-5,600 levels. On the upside, 19,188-19,340/5,750-5,800 may act as support for the day”.
BONANZA PORTFOLIO (PUNEET KINRA): “Nifty showed selling pressure from 5,800 levels and made bearish engulfing candlestick pattern, which shows bears are again having control at the moment. As long as Nifty trades above 5,600 levels, volatility in 5,600-5,850 levels may be seen. On maintaining below 5,600 or above 5,750 levels, decisive price action may also be seen”.
“For daily purpose, the trend deciding level is 5,680. If Nifty shows strength above 5,680 level, then rally to 5,730/5,770/5,800 levels may be seen. If Nifty does not show strength above 5,680 levels then selling pressure till 5,625-5,600/5,550 levels may also be seen”, he added.
FAIRWEALTH SECURITIES: "In the next session, Nifty is expected to face resistance in 5757-5777 zone. Breaching of 5620 level in Nifty may cause severe selling pressure. Oil-marketing companies may again perform well along with Auto stocks. While, Pharma and FMCG may stay weak.
KARVY STOCKS: "The market will take cues from the global markets and is expected to open on a flat to positive note tomorrow. Nifty is expected to be highly volatile on account of rollover of positions in the derivatives segment. Traders are advised to trade short on rallies in Nifty from 5720 and 5700 levels targeting 5650 levels".
