SATYAM RUNS MORE FAST TODAY <><><><><><
After a strong rally of 1,100 points or 7.5%, the Indian markets
decided to take a breather. The key indices fell for the first time in
seven trading sessions, with the sentiment hurt by yet another
steep fall in the Chinese market. The first-quarter GDP growth,
which was in line with expectations and better than the previous
quarter, could not arrest the slide.
The Shanghai SE Composite tumbled by 6.7%, the most in over 12
months. China has played a party pooper several times over the past few days amid worries over its banking system and its fallout on its fast-growing economy. There have been reports recently that the Chinese government is trying to curb bank lending and rapid growth in infrastructure projects. The Shanghai Composite has dropped by over 20% from the year’s peak. Barring the Realty and the Auto stocks, all the other major sectors were under the bear attack. However, the Mid-Caps and the Small-Cap were in demand. Major offloading was seen in the IT, Telecom and the Metal stocks. Technically, on Friday, it was the fifth time the NSE Nifty was unable to absorb the selling pressure at around the 4720-30 levels. In the recent past after hitting the 4,730 levels, the Nifty has corrected nearly 8% in merely 10 trading sessions. Are we again in for an 8-10% downfall? Only time will tell. The BSE Sensitve index, or the Sensex ended down 255.70 points, or 1.61 per cent at 15,666.64.
OUTLOOK: 2 day swing still in buy (both previous buy and sell were whipsaws) with reversal at 4645 spot. Strong resistance at 4800.....this is the 61.8% retracement of the entire correction from 6400 to 2200.
decided to take a breather. The key indices fell for the first time in
seven trading sessions, with the sentiment hurt by yet another
steep fall in the Chinese market. The first-quarter GDP growth,
which was in line with expectations and better than the previous
quarter, could not arrest the slide.
The Shanghai SE Composite tumbled by 6.7%, the most in over 12
months. China has played a party pooper several times over the past few days amid worries over its banking system and its fallout on its fast-growing economy. There have been reports recently that the Chinese government is trying to curb bank lending and rapid growth in infrastructure projects. The Shanghai Composite has dropped by over 20% from the year’s peak. Barring the Realty and the Auto stocks, all the other major sectors were under the bear attack. However, the Mid-Caps and the Small-Cap were in demand. Major offloading was seen in the IT, Telecom and the Metal stocks. Technically, on Friday, it was the fifth time the NSE Nifty was unable to absorb the selling pressure at around the 4720-30 levels. In the recent past after hitting the 4,730 levels, the Nifty has corrected nearly 8% in merely 10 trading sessions. Are we again in for an 8-10% downfall? Only time will tell. The BSE Sensitve index, or the Sensex ended down 255.70 points, or 1.61 per cent at 15,666.64.
OUTLOOK: 2 day swing still in buy (both previous buy and sell were whipsaws) with reversal at 4645 spot. Strong resistance at 4800.....this is the 61.8% retracement of the entire correction from 6400 to 2200.
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