The Indian Markets ended Monday on a weak note owing to unhealthy cues from the global front. The sentiment turned bearish as doubts over the global economic recovery increased after data showed that Japan?s economic growth slowed sharply in April-June. The bourses ignored the positive news that India's July inflation eased to 9.97% as compared to 10.55% seen in June. Index heavyweights Reliance Industries, ICICI Bank and State Bank of India fell, while ITC posted gains over 1% on Monday.
The BSE sensex began the day on a flat note at 18170, mere three points higher. The index hit the day's high of 18201 in the morning trades as the Asian markets partially recovered its early losses. The Sensex traded in a narrow range and hovered between the positive and negative terrain throughout the morning session. The Sensex started to drift lower and traded in the red in the afternoon session touching the day?s low of 17997. However, from that level the index recovered some of its losses and managed to close above its psychological levels of 18000. The BSE sensex closed at 18051, 116 points lower. The Nifty closed above its 5400 levels at 5418, 34 points lower. Turnover in NSE's futures & options (F&O) segment surged on Monday to Rs 1,02,320.78 crore from Rs 94,861.02 crore on Friday, 13 August 2010.
The big story of the day was Vedanta buying stake in Cairn India. Vedanta Resources Plc will acquire a 51-61% equity stake in Cairn India, 31-40% directly and 20% via Sesa Goa, for approximately USD 8.5-9.6 billion. The stocks of Cairn India and Sesa Goa ended lower by 6.4% and 9% respectively. State Bank of India hikes lending rates by 50 bps; the stock closes 1.02% lower Inflation eases to 9.97% in July. Suzlon plunged 7.2% after a disappointing set of earnings announced over the weekend.
FOR TODAY: Nifty Futures is stuck in a narrow trading range of 5380 – 5480 and we are witnessing that several attempts by Nifty Futures to break the trading range on either side has been met with continuous failure. Nifty Futures is showing resilience to the global markets and all the action has been shifted to stock specific. On Monday, it recorded a low of 5393 and recovered and ended at 5418.
US and European markets were closed yesterday almost in flat. Asian markets are trading mixed flat at present. SGX Nifty is trading at 5424.50(+6.50). Today's possible trading range may be 5385-5479. Any decisive break up or break down will decide the markets movement in future.
NOTE: I have no position at present. I may buy Nifty future around 5388-89 OR sell around 5477-5478, whichever is earlier (for today only).
TRADE SAFE. ALWAYS PUT STOPLOSS IN TRADING.
