BLOOD BATHIndian markets witnessed a sharp dent dropping the most in two
months on a hawkish RBI tone in the Monetary Policy. The central
bank’s move to tighten liquidity and an upward revision in inflation
forecast triggered a heavy sell-off on the bourses. Weak global cues
and disappointing quarterly earnings announced by select leading
Indian companies further dampened the sentiment on Dalal Street.
The interest rate sensitive like the Banking and the Realty stocks
were offloaded the most. Apart from the index heavyweights, even
the Mid-Cap and the small-Cap stocks were hammered by the bears. The markets were
extremely volatile and the index moved in the range of 388 points throughout the day. The Sensex finally ended at 16,353, down 387 points or 2%-the biggest single day fall since August 17 when the index shed 626 points. The NSE Nifty settled at 4,847, down 124 points. The realty stocks, too, tanked heavily on fresh credit concerns. The RBI raised the provisioning margins from 0.4% to 1% and warned against likely non-performing assets (NPAs) from this sector. The Midcap and the small-cap indices also fared extremely poor, down 3.5% and 4.5%, respectively.
The market breadth was extremely negative. Out of 2,789 shares traded, 2,274 declined and 449 advanced on the BSE.
Hindalco and Tata Steel plunged over 7.5% each to Rs 126 and Rs 501, respectively. Bharti Airtel and Reliance Communications shed over 6.5% each to Rs 307 and Rs 208, respectively. The other prominent draggers were ICICI Bank , Sterlite, SBI, Jaiprakash Associates and Tata Power, down 3-6% each. Wipro was the major gainer, up 2% at Rs 604 on the back of a 19% jump in consolidated jump in net profit. Tata Motors even added 1.5% at Rs 548.
Technically, the NSE Nifty was seen taking support at the 4545 levels which is also the 50 Day moving average for the index. If the crucial support level is taken out, 4720-4730 levels which have acted as an important resistance in the past would be the next support.
months on a hawkish RBI tone in the Monetary Policy. The central
bank’s move to tighten liquidity and an upward revision in inflation
forecast triggered a heavy sell-off on the bourses. Weak global cues
and disappointing quarterly earnings announced by select leading
Indian companies further dampened the sentiment on Dalal Street.
The interest rate sensitive like the Banking and the Realty stocks
were offloaded the most. Apart from the index heavyweights, even
the Mid-Cap and the small-Cap stocks were hammered by the bears. The markets were
extremely volatile and the index moved in the range of 388 points throughout the day. The Sensex finally ended at 16,353, down 387 points or 2%-the biggest single day fall since August 17 when the index shed 626 points. The NSE Nifty settled at 4,847, down 124 points. The realty stocks, too, tanked heavily on fresh credit concerns. The RBI raised the provisioning margins from 0.4% to 1% and warned against likely non-performing assets (NPAs) from this sector. The Midcap and the small-cap indices also fared extremely poor, down 3.5% and 4.5%, respectively.
The market breadth was extremely negative. Out of 2,789 shares traded, 2,274 declined and 449 advanced on the BSE.
Hindalco and Tata Steel plunged over 7.5% each to Rs 126 and Rs 501, respectively. Bharti Airtel and Reliance Communications shed over 6.5% each to Rs 307 and Rs 208, respectively. The other prominent draggers were ICICI Bank , Sterlite, SBI, Jaiprakash Associates and Tata Power, down 3-6% each. Wipro was the major gainer, up 2% at Rs 604 on the back of a 19% jump in consolidated jump in net profit. Tata Motors even added 1.5% at Rs 548.
Technically, the NSE Nifty was seen taking support at the 4545 levels which is also the 50 Day moving average for the index. If the crucial support level is taken out, 4720-4730 levels which have acted as an important resistance in the past would be the next support.
MARKET VIEW FOR 28.10.2009:The crucial support for the Sensex is 16221-15861 and the resistance is at 16721 Nifty: (4847) the crucial support for the Nifty is at 4699 and resistance is at 4961
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