Last week, Sensex and Nifty crashed 4.2%, plunged 8.5% in last two weeks.
Nifty crashed and breaks the important support zone 5690-5700 and closed at 5654. After putting on nearly 1.5% intraday, benchmark indices nosedived a hefty 3% from the highest point of the day to finish the day and the week deep in the red. Sensex lost 322 points to close at 18860 while Nifty finished at 5654, down 97 points. Realty, Banking, Metal and Auto stocks led the fall while IT stocks closed strong. SAIL tanked 6.4% on the back of reporting disappointing set of quarterly earnings announced yesterday after market hours. For the week, both the benchmark indices closed with mammoth cuts of 4.2% each. All the BSE sectoral indices finished in red on weekly basis with Capital Goods and Realty indices plunging the most, down 5.4% and 5.1% respectively. Inflation for the month of December came in at 8.43% compared to 7.48% for the previous month.
The 30 share index, Sensex tumbled 831.37 points, or 4.22%, to 18,860.44 in the week ended Jan. 14, 2011. On the other hand, the broad based NSE Nifty plunged 249.60 points, or 4.23%, to 5,655 in the same period.Mid-cap stocks plummeted 246.92 points, or 3.31%, to 7,223.78 in the week. Small-cap shares also dropped 369.35 points, or 3.94%, to 8993.84 during the week.
All sectoral indices ended weak. Capital goods (5.88%), Realty (5.30%), Bankex (5.29%), PSU (4.09%), Power (4.03%), IT (3.62%) and rest Metal, Teck, Healthcare, Consumer durable, Auto and FMCG in range of 3-1%.
Meanwhile, Inflation shot up to 8.43% in December, from 7.48% in the previous month, as prices of certain food and non-food items continued to show an upward trend. Snapping the five week rising trend, food inflation softened to 16.91% for the week ended Jan. 1, 2011, although vegetables, onions and protein-based items continued to remained costly. Food inflation fell by 1.41 percentage points from 18.32% recorded in the previous reporting week.
Rising inflation, fall in industrial output and likely increase in interest rates by RBI in policy meet scheduled on January 25 were key reasons behind this fall.
About 882 shares advanced as against 2009 shares declined on Bombay Stock Exchange.
The markets have fallen on huge volumes on last Friday. Total traded turnover on exchanges stood at Rs 2,26,366.61 crore. This included Rs 12,733.3 crore from NSE cash segment, Rs 2,10,495.14 crore from NSE F&O and the rest of Rs 3,138.17 crore from BSE cash segment.
FOR TODAY: Volatility Index (VIX) above 23.5 (23.81) suggests Nifty to remain volatile.Traders are advised to trade with STRICT STOPLOSS.
Below 5650, Nifty future support is around 5600/5550 whereas the resistance will come at 5690-5700 now. Above 5700, target will be 5785.
