SENSEX 16461.71 -314.16
NIFTY 4934.75
-95.70
USD/INR 0050.88 -00.14
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UPDATEDTIME 09.28 PM 17 NOVEMBER 2011
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The Bombay
Stock Exchange's Sensex closed sharply lower reacting to the correction in
European markets on concerns of eurozone debt crisis. Ratings agency Moody's
has downgraded nearly 10 German public-sector banks which may not receive
government aid if required. Meanwhile, Fitch Ratings has cautioned that
Europe's debt crisis may be a cause of concern for the US banks.
The rupee continued with its decline as foreign institutional investors headed for safer havens. The partially convertible rupee was at 50.89, down 0.15 paise against the US dollar. This is likely to put more pressure on importers like oil marketing companies and also those who have foreign debt on their books.
"Local panic is because of the discomfort from these currency movements in India. Rupee is losing continuous value, so that is one big thing and nobody knows where it is headed. There is no defence. Whosoever appears from RBI, they are saying that they do not want to intervene if the markets are orderly, so it looks that it is headed for new low.
It has its own repercussions for a lot of companies and businesses. Today there is something about refining margins slump or something like that, so that has spooked Reliance and kind of companies. Then there is a readjustment of MSCI, so a lot of companies, which are going out, they have also been sold out in wholesale by the guys, so mood is very depressive right now.
According to technical analysts, the market looks slightly oversold and a technical bounce back can be expected in next few sessions. However, from the medium term perspective the trend is still bearish.
There is no question that market trend is down. But given today's climatic action, where large-caps have fallen 5-7%, some pullback should come in around 4900-4920.
Going with that, I have taken long positions on the Bank Nifty. 8900 is the place from where Bank Nifty has bounced back several times.
The rupee continued with its decline as foreign institutional investors headed for safer havens. The partially convertible rupee was at 50.89, down 0.15 paise against the US dollar. This is likely to put more pressure on importers like oil marketing companies and also those who have foreign debt on their books.
"Local panic is because of the discomfort from these currency movements in India. Rupee is losing continuous value, so that is one big thing and nobody knows where it is headed. There is no defence. Whosoever appears from RBI, they are saying that they do not want to intervene if the markets are orderly, so it looks that it is headed for new low.
It has its own repercussions for a lot of companies and businesses. Today there is something about refining margins slump or something like that, so that has spooked Reliance and kind of companies. Then there is a readjustment of MSCI, so a lot of companies, which are going out, they have also been sold out in wholesale by the guys, so mood is very depressive right now.
According to technical analysts, the market looks slightly oversold and a technical bounce back can be expected in next few sessions. However, from the medium term perspective the trend is still bearish.
There is no question that market trend is down. But given today's climatic action, where large-caps have fallen 5-7%, some pullback should come in around 4900-4920.
Going with that, I have taken long positions on the Bank Nifty. 8900 is the place from where Bank Nifty has bounced back several times.
If nothing
untoward happens overnight, then some pullback all the way up to 5030-5050 is
easily possible. At some points, markets are cyclical and they need fresh
levels for people to cover their shorts and they need higher levels to get back
into those shorts.
So being too bearish right now for the immediate short term is not worthwhile but maybe over the medium term on next 15-20 days, it is possible that we get back towards 4700-4750.
The Sensex ended at 16461.71, down 314.16 points or 1.87 per cent. The 30-share index touched intraday high of 16807.15 and low of 16408.50.
The National Stock Exchange's Nifty closed at 4934.75, down 95.70 points or 1.90 per cent. The broader index touched a high of 5036.80 and low of 4919.45 in trade today.
BSE Midcap Index was down 1.30 per cent and BSE Smallcap Index slipped 1.15 per cent.
Amongst the sectoral indices, BSE Oil&gas Index fell 3.39 per cent, BSE Power Index was down 2.86 per cent, BSE Metal Index slipped 2.48 per cent and BSE Realty Index declined 2.40 per cent.
Sensex losers included Jaiprakash Associates (-6.49%), Reliance Industrie (-4.51%), Maruti Suzuki (-4.44%), BHEL (-4.37%) and Sterlite Industries (-4.02%).
There's buzz that AV Birla Group is planning to buy stake in Jaypee Cements. It seems that negotiations are on with Jaiprakash Associates for valuations and management control, say reports. Jaiprakash Associates was down over 5 per cent.
Hero Moto Corp (0.71%) Cipla (0.42%) and Sun Pharma (0.25%) were the only Sensex gainers.
Market breadth was negative on the BSE with 897 gainers against 1927 losers.
So being too bearish right now for the immediate short term is not worthwhile but maybe over the medium term on next 15-20 days, it is possible that we get back towards 4700-4750.
The Sensex ended at 16461.71, down 314.16 points or 1.87 per cent. The 30-share index touched intraday high of 16807.15 and low of 16408.50.
The National Stock Exchange's Nifty closed at 4934.75, down 95.70 points or 1.90 per cent. The broader index touched a high of 5036.80 and low of 4919.45 in trade today.
BSE Midcap Index was down 1.30 per cent and BSE Smallcap Index slipped 1.15 per cent.
Amongst the sectoral indices, BSE Oil&gas Index fell 3.39 per cent, BSE Power Index was down 2.86 per cent, BSE Metal Index slipped 2.48 per cent and BSE Realty Index declined 2.40 per cent.
Sensex losers included Jaiprakash Associates (-6.49%), Reliance Industrie (-4.51%), Maruti Suzuki (-4.44%), BHEL (-4.37%) and Sterlite Industries (-4.02%).
There's buzz that AV Birla Group is planning to buy stake in Jaypee Cements. It seems that negotiations are on with Jaiprakash Associates for valuations and management control, say reports. Jaiprakash Associates was down over 5 per cent.
Hero Moto Corp (0.71%) Cipla (0.42%) and Sun Pharma (0.25%) were the only Sensex gainers.
Market breadth was negative on the BSE with 897 gainers against 1927 losers.
Regards
RAKESH MAKIN
+91,
9041667797(DIRECT), 9915684997
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
Group mail id: makin97NSEtips@yahoogroups.co.in
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