market view 28.10.2009

Market ended volatile session on a lower note as traders squared off positions ahead of October F&O series expiry Bombay Stock Exchange’s Sensex ended at 16,283.49, down 69.91 points or 0.43 per cent. The index touched a low of 16,144.17 and high of 16,411.14. National Stock Exchange’s Nifty ended at 4826.15, down 20.55 points or 0.42 per cent. The broader index hit a low of 4784.10 and high of 4867 intraday. “The fall of Nifty from 4900 to sub-4800 levels was mainly on account of Delta hedging. Nifty is likely to close in the range of 4850-4900 tomorrow. There are still short positions for next series and open interest has increased indicating a further correction in days to come. We are recommending traders to go short on every rise upto 5050 and expect targets of 4750 and 4350 in next two months,” said a senior derivative analyst from a local brokerage. BSE Midcap Index, up 0.15 per cent, settled with marginal gains while BSE Smallcap Index moved 0.44 per cent lower. Amongst the sectoral indices, BSE Bankex declined 1.5 per cent, BSE Auto Index fell 0.94 per cent and BSE Power Index slipped 0.83 per cent. BSE Realty Index moved 0.88 per cent higher and BSE Oil&gas Index was up 0.69 per cent. Biggest Sensex gainers were Ranbaxy Laboratories (3.77%), Jindal Steel (3.66%), Wipro (3.49%), Bharti Airtel (3.44%) and Tata Motors (2.49%). Losers were Maruti Suzuki (-4.18%), Tata Steel (-3.63%), Suzlon Energy (-3.6%), HDFC (-3.49%), BPCL (-3.43%). Market breadth on BSE remained negative with 1,627 declines outnumbering 1,059 advances.European markets were in the red following sharp correction in banks and commodities. US stock futures were pointing towards a lower opening. At 5 pm IST, Dow Jones futures was down 0.51 per cent, S&P 500 moved 0.51 per cent lower and Nasdaq 100 edged 0.28 per cent lower.