The FIIs were net sellers with sales worth Rs 1651.41 Cr (prov. cash market fig)
The key benchmark indices slumped to 4-1/2-month lows after the latest data showed food price index remained at elevated levels, stocking fears the Reserve Bank of India (RBI) will continue to hike interest rates this year. Market underperformed mostly higher global stocks. All the sectoral indices on BSE were in the red. Index heavyweight Reliance Industries declined for the third day in a row. The Sensex settled below the psychological 19,000 mark.
Stocks were volatile as traders rolled over positions in the derivatives segment from January 2011 series to February 2011 series ahead of the expiry of the near-month January 2011 contracts.
The BSE 30-share Sensex was down 285.02 points or 1.5% to 18,684.43, its lowest closing level since 8 September 2010. The index fell 313.40 points at the day's low of 18,656.05 in late trade. The index gained 117.24 points at the day's high of 19,086.69 in early trade.
The S&P CNX Nifty was down 83.10 points or 1.46% at 5,604.30, its lowest closing level since 7 September 2010. The Nifty hit low of 5,594.95 in late trade.
The BSE Mid-Cap index fell 1.88% an underperformed the Sensex. The BSE Small-Cap index declined 1.35% and outperformed the Sensex.
The market breadth, was weak, compared with positive breadth earlier in the day. On BSE, 1905 shares declined while 956 shares advanced and a total of 110 shares remained unchanged. Among the 30-member Sensex pack, 28 declined while the rest gained. BSE clocked turnover of Rs 3055 crore, lower than Rs 3629.03 crore on Tuesday, 25 January 2011.
VIEWS FROM DIFFERENT BROKING HOUSES::
BONANZA PORTFOLIO (PUNEET KINRA): "Nifty showed selling pressure and for the first time, Nifty closed below its 200 DMA, which shows bears are again having control at the moment. Selling pressure may be continuing. Decisive buying interest may be seen only if Nifty manages to sustain above 5,750 levels".
"For daily purpose, the trend deciding level is at 5,600. If Nifty shows strength above 5,600 level, then rally to 5,640/5,680/5,725 levels may be seen. If Nifty does not show strength above 5,600 levels then selling pressure till 5,550/5,500/5,450 levels may also be seen".
SHAREKHAN: "The Nifty opened on a positive note but was unable to hold on to the gains and soon started slipping down. After trading in the red for almost the entire day, it finally closed the session in the negative. The Nifty has broken its previous low i.e., 5624, which is a bearish sign for the market but is expected to take support around 5600 and start its journey on the upside from there. On the daily chart the Nifty has support at its 200 DMA i.e., 5600 and at the trend line on the upward direction".
GEOJIT BNP PARIBAS FINANCIAL SERVICES: “Nifty slipped below the 5,600 mark and closed below the 200 DMA of 5,620. If Nifty closes below 5,600 for two consecutive sessions, then we may see further downside which can bring down Nifty towards 5,444 levels. On the other hand, if it can move above 5,740 levels, then further upside can be seen. Given the rising food and fuel inflation and the chances of further rate hikes, coming month is going to be a bit subdued and range bound”.
BONANZA PORTFOLIO (AVINASH GUPTA): “The undercurrent of the market has improved considerably. Nifty may encounter resistance around 6,000-6,050. The long term uptrend is intact”.
ANGEL BROKING: “Markets traded with negative bias as selling gradually intensified as the day progressed which led the indices to close near day low. On the daily charts, we are witnessing that indices have breached and closed below the 200-day SMA which is sign of weakness. Hence, in coming trading session, if indices trade convincingly below 18,656/5,590 levels then they are likely to test 18,536-18,386/5,550-5,500 levels. On the upside, 18,860-19,000/5,650-5,700 may act as resistance for the day”.
KARVY STOCK: “The market will take cues from the global markets and is expected to open on a flat to positive note tomorrow. Traders are advised to trade short in Nifty from 5,600, with a stop loss placed at 5,620 levels targeting 5,570 and 5,550 levels”.
CANARA BANK SECURITIES(CANMONEY): “Technically, Nifty exhibited a very busy but weak movement in today’s session. After breaching the vital resistance of 5,720 in morning session’s short lived upsurge, Nifty witnessed a sudden bout of heavy profit booking and fell heavily in afternoon session. After breaching the sanctity of vital supports of 5,690, 5,660 and 5,600, Nifty closed weak near day’s low, which may be a negative factor for bulls in coming session. In today’s session, Nifty again closed below its 9, 14, 50 and 100 day’s SMA level placed at 5,685, 5,728, 5,898 and 5,967 levels; these levels may act as new ranges, in coming sessions. The roll over for the next series was also not healthy. VIX for the day closed at higher level of 22.09% and indicating more than average volatility in market in the forthcoming sessions. RSI (14) for the day was at 34.31 levels and MACD was below the signal line, thus combined together they are giving the signals that market may witness some ranged movement in coming session”.
