It was a disastrous end to the week as benchmark indices nosedived nearly 3% from the top of the day to close at the fresh intermediate low. Sensex lost 441 points to close at 18008 while Nifty ended at 5395, down 131 points. BSE mid-cap and small-cap indices lost 1.4% and 1.6%. For the week, Nifty and Sensex lost 2.1% each. BSE FMCG index plunged 6.4% over the week, becoming the top loser among the sectoral indices, followed by Realty index, down 3.5%.
VIEWS FROM DIFFERENT BROKING HOUSES:
GEOJIT BNP FINANCIAL SERVICES (ALEX MATHEWS): "Nifty lost its crucial support of 5,400 and major index heavy weight stocks are trading below their respective 200 DMAs and if the markets trade below 5,348 then we may see more institutional selling pressure".
BONANZA PORTFOLIO (AVINASH GUPTA): "After a technical correction, market has again resumed its downward move. The market may consolidate in a range of 5,300 to 5,600".
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 5,400, else from 5,430 levels with a stop loss placed above 5,450 levels".
CANARA BANK SECURITIES (CANMONEY): "Technically, Nifty failed to confirm the last session`s move and lost the positive momentum of yesterday completely in today`s session. Nifty breached the vital levels of 5,400, 5,500 and 5,460 in today`s session, which is a big negative for our market. Based on candlestick charts, in today`s session, Nifty formed a big bearish candle and breached the lowest point of past 5 months, this is a confirmation of weak sessions ahead. In today`s session, Nifty again breached the vital 14 day`s SMA level of 5,593, and closed below its 9, 14, 50 and 100 day`s SMA level placed at 5,536, 5,593, 5,841 and 5,956 levels; these levels may act as new resistances, in coming sessions. VIX for the day closed at higher level of 24.41% and indicating more than average volatility in market in the forthcoming sessions. PCR for the session was recorded at 0.89. RSI (14) for the day was at 31.20 levels and MACD was below the signal line, thus combined together they are giving the signals that market may witness more correction amidst ranged movement in coming session".
GUL TEKCHANDANI, INVESTMENT ADVISOR: "If the downside is restricted at 5300, after budget they will get stable and once again there might be little bit of uptick from there on".
MITESHTHACKER.COM (MITESH THACKER): "The markets are likely to bounce back to 5620-5650, as long as they remain above 5400".
KR CHOKSEY SECURITIES (DEVEN CHOKSEY): "Somewhere near this level we would be seeing some amount of stability and Foreign Institutional Investors (FIIs) could once again start selling if markets sustain recovery for some period".
RAJESH JAIN, INDEPENDENT MARKET STRATEGIST: “We were seeing a pull back of liquidity which never really created the buyers at all levels and there was still some amount of commitment left to Indian markets. We are seeing ‘sell on rises’ tendency has really synced in and there is risk aversion which is becoming very predominant”.
TATA INVESTMENT CORP. (AMIT DALAL): "The sharp fall in the markets are due to infrastructure and credit squeeze in the system because of lack of government’s spending".
BAJAJ ALLIANZ (SASHI KRISHNAN): "The headwinds are not over yet. We could see further correction in the market for a couple of reasons. The interest rate tightening cycle is one of the reasons. Reserve Bank of India (RBI) is not over yet with the rate tightening cycle. Secondly, with the US recovering, the rupee continuing to depreciate, we may see a lot more FII withdrawals over the next few days. For the month of January, we have seen the FIIs take out close to a USD 1 billion and that made the market correct about 10% to11%. We see further FII withdrawals from the market and the markets could still be under pressure. Third, globally the risk perceptions are increasing dramatically. The uprisings in Egypt and Tunisia, the oil prices crossing USD 100 per bbl – all these global issues will put lot of pressure. These will also change sentiment towards developing markets".
CLSA (LAURENCE BALANCO): "The Nifty has tagged the 5300-5500 support zone that we have been citing, but with no sign of bullish price momentum divergence. further losses are likely in the coming sessions".
FAIRWEALTH SECURITIES: "In the next session, 5348 as a crucial level in Nifty, sustaining below this level it may test 5230 although 5275-90 may act as minor support levels. 5435-5454 may act as strong resistance in any pull back in Nifty. Auto and Realty may face major selling pressure while Oil-Gas and Fertilizers may show strength".
DAILY CALLS FROM FARIWEALTH SECURITIES:
Sell NIFTY future below 5348, stoploss above 5381, Target 5315-5290
Sell BANK NIFTY future below 10378, stoploss above 10432, Target 10320-10200
Sell ICICI BANK future below 987, stoploss above 1002, Target 972-960
Sell LARSEN TOUBRO future below 1552, stoploss above 1572, Target 1532-1512
Sell RELINFRA future below 673, stoploss above 686, Target 660-650
Sell HEROHONDA future below 1504, stoploss above 1521, Target 1485-1460
WEEKLY DERIVATIVE: ICICI SECURITIES ANAGRAM
