makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 19.05.2010WEDNESDAY

Wednesday, May 19, 2010

MARKET ENDED 19.05.2010WEDNESDAY

WERE TODAYS GAINERS

MARKET ENDED 19.05.2010 WEDNESDAY

SENSEX 16408.49 -467.27

NIFTY 4919.65 -146.55

NASDAQ 2317.26 -36.97

DJIA 10510.95 -114.88

RS/$ 45.55 +00.17

Equities ended with huge losses on Wednesday as panic stricken investors offloaded positions following sell-off in global markets after Germany banned short sales in some government bonds and stocks. This was the worst performance for Indian equities in the past four months.
Nifty opened with a gap-down and took support near its 200 Daily Moving Average of 4988. However, the bears, out in full force, pulled the indices below this crucial level for a second time in last three days. To make matters worse, the index closed much below its support levels.
According to analysts, the fair value for Nifty is around 4700-4800 and we may see these levels in the next few sessions. They are advising investors to start accumulating at current and lower levels.
National Stock Exchange’s Nifty ended at 4919.65, down 146.55 points or 2.89 per cent. The index slipped to intraday low of 4908.15 from an early high of 5065.10.
Bombay Stock Exchange’s Sensex closed at 16,408.49, down 467.27 points or 2.77 per cent. The index hit intraday low of 16,373.32 from an opening level of 16,802.39.
Sensex is on the verge of breaking 16,551. If it gives two consecutive closes below 16,550 then we are open for at least 1,500-1,800 points fall. On the upside, unless it gives a few closings above 17400, the trend will remain negative.
Let’s wait for two consecutive closes below 16,550 or initiate a trade with a closing below 16,550 and 17,000 as stop loss. On the downside, 16,190-15,630-14,740 are the profit booking / support levels for the index. A strong market will see possibility of fresh buying near 16,175.
Sell-off was seen in broader markets as well. The BSE Midcap Index fell 2.55 per cent and BSE Smallcap Index slipped 2.54 per cent.
All the sectoral indices were beaten down badly. BSE Metal Index fell 4.19 per cent, BSE Realty Index tumbled 3.95 per cent and BSE Bankex declined 3.85 per cent.
Idea (-8.17%), Tata Motors (-8.14%), Sterlite Industries (-6.84%), Reliance Capital (-6.83%) and Unitech (-6.82%) were amongst the major Nifty losers.
Hero Honda (1.52%), Tata Power (0.58%) and BPCL (0.12%) were the only index gainers.
Market breadth was negative on the NSE with 2258 losers against 707 gainers.
Meanwhile, shares in Europe were under intense selling pressure and US markets are set to follow suite. At 5:30 pm IST, Dow Jones futures was down 0.68 per cent, S&P 500 futures edged 0.82 per cent lower and Nasdaq 100 declined 0.85 per cent.