Weak IIP data affected Indian market negatively with both benchmark indices breached their psychological support levels of 16,000 and 4800, respectively.
The BSE Sensex lost 343.11 points or 2.12% to settle at 15,870.35, its lowest closing level since 25 November 2011. The index declined 373.50 points at the day's low of 15,839.96 in late trade. The index rose 146.86 points at the day's high of 16,360.32 in early trade. The S&P CNX Nifty lost 102.10 points or 2.1% to settle at 4,764.60, its lowest closing level since 25 November 2011. The index hit a low of 4,755.55 and a high of 4,910.25 in intraday trade. The BSE Mid-Cap index fell 1.9% and the BSE Small-Cap index declined 1.54%. Both these indices outperformed the Sensex.
The market breadth was weak. On BSE, 1,957 shares fell and 797 shares fell and a total of 115 shares were unchanged. The breadth was positive earlier in the day. From the 30-member Sensex pack, 27 stocks fell and the rest of them rose.
FOR TODAY: A GAP DOWN OPENING IS VISIBLE. WATCH 4720/4711 ON THE DOWN SIDE FROM WHERE MARKET MAY TAKE U-TURN. IN ANY CASE, BELOW 4700, I'LL EXIT FROM LONGS AND BUY PUTS. ON THE UPSIDE, 4800 WILL ACT AS RESISTANCE. ABOVE 4800, 4840/4860 AND EVEN 4900 IS MY TARGET.
DISCLAIMER: I am holding four lots of 4800CE @ 107 (average price) and I will hold the same (probably a gap-down opening near 4740 will be there and obviously, value of 4800CE will be near 60-65 or around 50). If market condition improves during the day, will buy more...
