The bear onslaught continues on Dalal Street, with the BSE Sensex and the NSE Nifty falling for the fifth successive trading session.
Foreign Institutional Investors (FIIs) were net sellers in the equity segment worth Rs 10.36 billion on both the BSE and the NSE on February 1, as per provisional data available at NSE. They bought equities worth Rs 28.53 billion and sold equities worth Rs 38.89 billion.
It was yet another day of heavy offloading across the board, as all the BSE sectoral indices ended in the red. The Sensex briefly fell below 18,000 in intraday day trading, which was for the first time since Aug. 31, 2010.
The key benchmark indices fell for the fifth straight day to hit five-month lows on worries corporate profit growth will slow on rising input costs and higher interest charges. Macroeconomic worries arising from higher crude oil prices and selling by foreign funds last month, also weighed on the sentiment as index heavyweight Reliance Industries (RIL), a number of Anil Dhirubhai Ambani group stocks, some realty and construction shares hit 52-week low/lifetime low. Indian stocks underperformed higher global equities. World stocks rose as worries over the unrest in Egypt receded.
The BSE 30-share Sensex was down 305.54 points or 1.67% to 18,022.22, its lowest closing level since 31 August 2010. The index shed 345.59 points at the day's low of 17,982.17 in late trade. The index gained 124.30 points at the day's high of 18,452.06 in early trade.
The S&P CNX Nifty was down 88.70 points or 1.61% at 5,417.20, its lowest closing level since 31 August 2010. The Nifty hit a low of 5,402 in late trade. The BSE Mid-Cap index fell 1.63% and the BSE Small-Cap index declined 1.44%. Both these indices outperformed the Sensex.
The market breadth was weak, compared with positive breadth earlier in the day. On BSE, 1966 shares declined while 936 shares advanced and a total of 89 shares remained unchanged. Among the 30-member Sensex pack, 27 declined while rest rose. BSE clocked turnover of Rs 3443 crore, lower than Rs 3559.94 crore on Monday, 31 January 2011.
VIEWS FROM DIFFERENT BROKING HOUSES:
NIRMAL BANG SECURITIES (Mehraboon Irani): "Markets could have a further 5-7% downside but there could be lot of midcaps and small caps which may shed additional 15-20%".
VIRATECHINDIA.COM (Rahul Mohindar): "The markets are unlikely to slip further in a hurry. Start accumulating to play for a pullback rally to about 5550".
ATMA (Sushil Kedia): "The Nifty may slip to 5,200. Even 5,200, I would not go out and say will definitely be a bottom. Till 5,810 is taken out, resuming talks of a big move that will go back to all time highs should be abandoned".
BONANZA PORTFOLIO (Avinash Gupta): "Nifty continues to trade with a weak bias. 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 5,450 levels, else from 5,480 with a stop loss placed at 5,500 levels".
GEOJIT BNP FINANCIAL SERVICES (Alex Mathews): "Outlook for Nifty remains weak as it came near its 5,400 support today. Next major support for Nifty is at 5,348 but on its way to this level, we may see minor pull backs as the markets are in the overbought region".
ANGEL BROKING (Mileen Vasudeo): "Markets were unable to sustain the opening positive tick and selling dominated the trading session which dragged the indices to close deep in red. On the daily chart, markets are near to the crucial support of 17,929/5,388 levels. If indices trade below this level, then it may test 17,820/5,350. On the upside 18,159-18,300/5,465-5,520 levels may act as resistance for the day".
CANARA BANK SECURITIES (CanMoney): "Technically, Nifty exhibited a very weak movement in today's session. After breaching the vital support of 5,500 and 5,460, Nifty managed to close above 5,400; this may act as a base for future recovery in the buyers. Based on candlestick charts, despite recovery, Nifty has formed higher lows and lower highs, which is a bearish signal and continuous selling at higher levels of the indices is capping the gains. In today's session, Nifty closed below its 9, 14, 50 & 100 day's SMA level placed at 5618, 5658, 5870 and 5964 levels; these levels may act as new ranges, in coming sessions.. VIX for the day closed at higher level of 23.73% and indicating more than average volatility in market in the forthcoming sessions. RSI (14) for the day was at 26.62 levels and MACD was below the signal line, thus combined together they are giving the signals that market is in oversold status and may witness some limited upsurge amidst ranged movement in coming session".
GABA FINANCIAL ADVISORS (Prakash Gaba): "The support for the Nifty is at 5,400-5,360 and resistance at 5,564-5,609. The crucial support for the Sensex on the downside is at 17,926 and resistance at 18,536-18,690".
