The key benchmark indices edged lower, extending losses for the second straight day, as European stocks and US index futures fell. Index heavyweight Reliance Industries (RIL) reversed intraday gains. Interest rates sensitive banking, auto and realty stocks tumbled. IT stocks bucked the weak market on a decline in rupee against the dollar. Hindalco Industries hit record high. The market breadth was weak, in contrast with a strong breadth earlier in the day. The BSE 30-share Sensex was down 197.62 points or 0.96%, up close to 60 points from the day's low and off close to 210 points from the day's high.
The BSE 30-share Sensex was down 197.62 points or 0.96% to 20,301.10. The Sensex rose 11.23 points at the day's high of 20,509.95 in early trade. The index declined 254.77 points at the day's low of 20,243.95 in mid-afternoon trade.
The S&P CNX Nifty was down 66.55 points or 1.08% to 6,079.80.
The BSE Mid-Cap index fell 1.27%. The BSE Small-Cap index declined 1.02%. Both the indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,952 shares declined while 1028 shares rose. A total of 90 shares remained unchanged. The breadth was strong earlier in the day. From the 30 share Sensex pack, 24 fell and the rest rose.
BSE clocked turnover of Rs 4062 crore, lower than Rs 4339.32 crore on Tuesday, 4 January 2011.
NSE's volatility index, edged up to 17.88% from Tuesday's (4 January 2011) close of 17.03%.
VIEWS FROM DIFFERENT BROKING HOUSES:
GABA FINANCIAL ADVISORS(PRAKASH GABA):
“Technically the market is still in a sideways zone and some volatility in the system is not ruled out. The market weakened and is now near a crucial support zone of 6,059 ¦though the market looks weak there is a good chance that it could sustain here in these regions”.
“The support for the Nifty is at 6,088-6,059-6,031 and resistance at 6,183-6,200. For Sensex, the crucial support on the downside is at 20,180 and resistance at 20,571-20,648-20,805”.
BONANZA PORTFOLIO:
“On Thursday, Nifty may open on a negative note. On Wednesday, Nifty showed selling pressure from higher levels. And as it has closed below 6,100 level, negative bias is likely to continue”.
“For daily purpose, the trend deciding level is 6,090. If Nifty shows strength above 6,090 levels, then rally to 6,125/6,150 levels may be seen. If Nifty does not show strength above 6,090 levels then selling pressure till 6,050/6,000 levels may also be seen”.
FAIRWEALTH SECURITIES:
“Indian market faced sharp decline on account of heavy selling pressure from banking and realty stocks. Auto stocks also appeared weak while IT and FMCG maintained some strength. Sensex closed at 20,301, down 197 points from its previous close, and Nifty shut shop at 6,079, down 66 points”.
“In the next session, 6,029 may act as a strong support for Nifty while 6,110-6,130 may act as a resistance zone. Traders are suggested to sell at rise as long as nifty is unable to stay above 6,130. Banking stocks may face selling pressure at higher levels; realty and auto again appear weak along with capital goods. IT, pharma and FMCG may maintain strength”.
DAILY RECOS FROM FAIRWEALTH SECURITIES:
Sell BPCL below Rs 723 for target of Rs 710-700 and stop loss of above Rs 736
Buy Jindal Saw around Rs 200-202 for target of Rs 212-216 and stop loss of below Rs 195
Sell ABG Shipyard below Rs 414 for target of Rs 407-400 and stop loss of above Rs 420
Sell ICICI Bank futures below Rs 1,070 for target of Rs 1,056-1,042 and stop loss of above Rs 1,081
Sell HDIL futures below Rs 185 for target of Rs 182-178 and stop loss of above Rs 188
Sell Maruti futures below Rs 1,410 for target of Rs 1,397-1,388 and stop loss of above Rs 1,423
FOR TODAY:
In the meantime, nifty future opened at 6129.25, up 25 points; made a high of 6134 (till now) and low of 6090. Presently it is trading at 6103.
The trading range will be probably 6080-6180.
Not gertting enough time to update during trading hours. However, will update as and when time permits.
TRADE LIGHT AND SAFE. ALWAYS PUT YOUR STOPLOSS.
