makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 25.05.2011 WEDNESDAY

WERE TODAY'S GAINERS

MARKET ENDED 25.05.2010 WEDNESDAY

SENSEX 17874.24 -164.73

NIFTY 5348.95 -45.90

NASDAQ 2763.44 +17.28

UPDATEDTIME 09.28 PM 25 MAY 2011

Indian markets ended in the negative territory as traders resorted to profit booking ahead of May series F&O expiry. Weak global markets also kept the bulls under check. The market is likely to remain choppy and await for on-set of monsoon for direction in the short-term.

Indices opened on a subdued note and slipped lower as the session progressed due to lack of investor participation. Some buying was seen at lower levels on a low-volume day and benchmarks closed near support levels. Most of the major sectoral indices ended in the negative terrain with capital goods, technology and realty stocks worst hit.

Rate sensitive sectors have been under pressure for the past few sessions on concerns of inflation and further interest rate hike by the Reserve Bank of India. market is likely to remain volatile in the medium term. He suggests accumulating rate sensitive stocks which may correct further in next 3-6 months.

"The market will remain sideways or under pressure for the next 3-6 months, but I believe that could be a good opportunity for you to go out and accumulate the cyclicals. We believe in the next six months, the market being volatile will give you a lot of opportunities.

And given that we expect the interest rate as well as the inflation to peak out in the next six months, it could be pretty interesting to see that some of these stocks can be available at pretty interesting prices. So it is a clear strategy that in the next six months, you can continue to accumulate the rate cyclicals," he said.

Bombay Stock Exchange's Sensex ended at 17847.24, down 164.73 points or 0.91 per cent. The 30-share index hit a high of 17976.36 and low of 17786.13 intraday.

National Stock Exchange's Nifty closed at 5348.95, down 45.90 points or 0.85 per cent. The broader index touched a high of 5389.10 and low of 5328.70 in trade today.

Nifty has formed an ending diagonal pattern with support around 5348 and resistance around 5500, which is a bullish sign for the market. It is now expected to bounce from here till 5590, which will be a retest of the 200 day exponential moving average (DEMA).

BSE Midcap Index was down 0.57 per cent and BSE Smallcap Index slipped 0.65 per cent.

Amongst sectoral indices, BSE Capital Goods Index was down 1.53 per cent, BSE IT Index declined 1.52 per cent and BSE Realty Index slipped 1.31 per cent. BSE FMCG Index moved up 0.01 per cent.

DLF (-4.04%), Reliance Communications (-2.48%), L&T (-2.24%), TCS (-2.09%) and State Bank of India (-2.06%) were the top Sensex losers.

DLF reported 19.19 per cent fall in consolidated net profit to Rs 344.54 crore for quarter ended March 11 as compared to Rs 426.38 crore in the corresponding quarter a year ago. Sales stood at Rs 2,683.09 crore from Rs 1,994.37 crore last fiscal.

Jindal Steel (1.13%), Tata Motors (1%), ITC (0.91%), NTPC (0.33%) and Maruti (0.12%) were amongst the gainers.

Market breadth was negative on the BSE with 1649 declines against 1080 advances.