The key benchmark indices fell for the second straight day, tumbling to 7-month lows in choppy trade after the Central Bureau of Investigation (CBI) widened its probe in 2G scam with the arrest of Shahid Balwa, Managing Director of DB Realty and Vice Chairman of Etisalat DB. Shares of Anil Dhirubhai Ambani group (ADAG) stocks took a heavy drubbing. ADAG companies Reliance Infra, Reliance Cap, Reliance Power and Reliance Communications fell between 12-21% after comments by the Institute of Chartered Accountants of India (ICAI) head Amarjit Chopra on the Sebi consent order on the group. Reliance Communications shares closed at a record low of Rs 93.40. ADAG said after trading hours that a series of baseless and motivated rums were spread by rivals, which was accompanied by vicious and illegal bear hammering of the group shares. It said it had asked the Securities and Exchange Board of India and the stock exchanges to investigate.
The BSE 30-share Sensex was down 182.93 points or 1.03% to 17,592.77, its lowest closing level since 7 July 2010. The index rose 88.62 points at the day's high of 17,864.32 in mid-morning trade. The Sensex lost 267.35 points at the day's low of 17,508.35 in late trade. The S&P CNX Nifty was down 59 points or 1.11% to 5,253.55, its lowest closing level since 7 July 2010. The Nifty hit a low of 5,225.65 in late trade. The BSE Mid-Cap index fell 3.64% and the BSE Small-Cap index declined 4.3%. Both these indices underperformed the Sensex.
The market breadth was extremely weak. On BSE, 2414 shares declined while 506 shares advanced. A total of 60 shares remained unchanged. Among the 30-member Sensex pack, 22 declined while the rest gained. The total turnover on BSE amounted to Rs 3930 crore higher than Rs 2824.15 crore on Tuesday, 8 February 2011. For details, "Read here"
VIEWS FROM DIFFERENT BROKING HOUSES:
ANGEL BROKING (Mileen Vasudeo): “Markets opened lower, witnessed minor pullback in the early hour of trade which was short lived and selling pressure dragged down the indices to close in red. In coming trading session if indices trade convincingly above 17,687/5,280 levels then a pull back up to 17,864-17,920/5,340-5,360 levels cannot be ruled out. On the flip side if indices breach 17,508/5,220 levels then they are likely to test the next support levels of 17,157/5,150”.
BONANZA PORTFOLIO (Avinash Gupta): “The structure of the market has weakened considerably. The market is expected to trade with a soft bias for some time”.
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 from current levels, else from 5,300 levels for targets of 5,200 levels with stop loss placed at 5,350 levels”.
CANARA BANK SECURITIES(CanMoney): “Technically, Nifty maintained its downward journey and despite a positive opening, closed near day’s low after breaching the vital support of 5300 level. Chart-wise, yesterday Nifty formed bearish engulfing pattern, which depict a continuation pattern for ongoing weak trend, Nifty followed the same and formed one big bearish candle today. Nifty is forming higher lows and lower highs, which is a big negative indication for our market. Because of selling spree, Nifty again closed below its 9, 14, 50 and 100 day’s SMA level placed at 5417, 5514, 5812 & 5940 levels; these levels may act as new resistances in coming sessions. VIX for the day closed at higher level of 25.24% and indicating more than average volatility in market in the forthcoming sessions. RSI (14) for the day was at 26.02 levels and MACD was below the signal line, thus combined together they are giving the signals that market may witness ranged movement in coming session”.
GABA FINANCIAL ADVISOR (Prakash Gaba): “Nifty likely to take a support at 5137”.
BONANZA PORTFOLIO (Puneet Kinra): “Nifty showed volatile session. Nifty’s short term trend is down and Nifty is trading below important support at 5350 levels. Weakness may be continuing below 5,350 levels. Nifty also has important support at 5,225 levels, if Nifty show strength from 5,225 levels then volatility within 5,225-5,350 range may be seen”.
“For daily purpose purpose, the trend deciding level is 5,225-5,250 .If Nifty shows strength above 5,225-5,250 level, then rally to 5,350/5,440 levels may be seen. If Nifty does not show strength above 5,225 levels then selling till 5,160/5,100 may also be seen”.
