WERE TODAYS SENSEX GAINERS
SENSEX 16371.51 -90.20
NIFTY 4905.80
-28.95
USD/INR 0050.88 -00.14
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UPDATEDTIME 09.28 PM 18 NOVEMBER 2011
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The Bombay
Stock Exchange's Sensex ended in the negative terrain but off day's lows as
traders covered short positions in last half an hour of trade ahead of the
week-end.
"Market being oversold at this point of time, it may be an opportunity for some to cover their short portfolios because you would not like to carry their short portfolios either at the end of the week and come back on Monday to find it is moving other way round.
So to a greater extent I would think it would be safer to play with it and may have some amount of short covering taking place and safe at the end of the week. Also we have got the expiry of the contract in next week so to ahead of that some amount of squeeze is bound to happen so it may make sense to have some amount of short covering today on Friday.
Meanwhile, weak Indian rupee against the dollar continued to put pressure on indices. The partially convertible rupee slipped 51.31 per dollar against previous close of 50.90/91 as concerns of Eurozone crisis led to increased demand in the US dollar.
"If it breaks 52.18 then whether it will go to 55 or 58 will be immaterial but certainly it will attract liquidation from Foreign Institutional Investors from risky instruments.
In my opinion, price is efficient and has already discounted an immediate future. In the short term any panic selling will be an opportunity to enter into long positions with a short term to medium term view. But for the long term effects will be negative and necessary precautions are must to safeguard from risky investments.
It will be positive for export companies but negative for domestic companies. Technically, 48 will remain major support and 52.18 will major hurdle. Breach of the same may lead to gradual expansion to 56 levels. Failure to cross 52.18 may keep the trend range bound between 50.50 and 52.18.
The Sensex ended 16371.51, down 90.20 points or 0.55 per cent. The 30-share index touched intraday low of 16164.99 and high of 16396.69.
The National Stock Exchange's Nifty ended at 4905, down 28.95 points or 0.59 per cent. The broader index touched a high of 4915.90 and low of 4837.95 in trade today.
According to analysts, the market may see some recovery after such a sharp fall this week. However, they advise traders to be cautious of any pull-back rally.
In the coming week, we will like to see if this bounce back that we have seen sustains. The odds do seem to be low. In case it is a shallow kind of sideways type pullback, which has great difficulty in moving up, then there would be merit in trying to short at the same level 4970-5000. Around those levels, we would like to see what kind of strength the market shows.
Selling pressure continued in the midcaps and smallcaps space on rumours that pledged shares were being sold due to margin pressure. Sharp correction was seen in shares of Pipavav DOC on rumours that promoters pledged shares were being sold. However, the management clarified that none of the promoters pledged shares have been revoked.
BSE Midcap Index was down 1.03 per cenet and BSE Smallcap Index was 1.90 per cent lower.
Amongst the sectoral indices, BSE Realty Index was down 1.59 per cent, BSE FMCG Index fell 1.39 per cent, BSE Metal Index declined 1.30 per cent and BSE Auto Index was 1.20 per cent lower. BSE Healthcare Index was up 0.19 per cent and BSE Oil&gas Index was 0.01 per cent up
BHEL (-3.06%), Tata Motors (-2.74%), Mahindra & Mahindra (-2.74%), ITC (-2.46%) and Tata Consultancy Services (-2.24%) were amongst the major Sensex losers.
Hero MotoCorp (3.05%), Tata Power (2.42%), Wipro (1.88%), Sun Pharma (1.36%) and HDFC (1.34%) were amongst the Sensex gainers.
Market breadth was negative on the BSE with 882 gainers against 1989 losers.
"Market being oversold at this point of time, it may be an opportunity for some to cover their short portfolios because you would not like to carry their short portfolios either at the end of the week and come back on Monday to find it is moving other way round.
So to a greater extent I would think it would be safer to play with it and may have some amount of short covering taking place and safe at the end of the week. Also we have got the expiry of the contract in next week so to ahead of that some amount of squeeze is bound to happen so it may make sense to have some amount of short covering today on Friday.
Meanwhile, weak Indian rupee against the dollar continued to put pressure on indices. The partially convertible rupee slipped 51.31 per dollar against previous close of 50.90/91 as concerns of Eurozone crisis led to increased demand in the US dollar.
"If it breaks 52.18 then whether it will go to 55 or 58 will be immaterial but certainly it will attract liquidation from Foreign Institutional Investors from risky instruments.
In my opinion, price is efficient and has already discounted an immediate future. In the short term any panic selling will be an opportunity to enter into long positions with a short term to medium term view. But for the long term effects will be negative and necessary precautions are must to safeguard from risky investments.
It will be positive for export companies but negative for domestic companies. Technically, 48 will remain major support and 52.18 will major hurdle. Breach of the same may lead to gradual expansion to 56 levels. Failure to cross 52.18 may keep the trend range bound between 50.50 and 52.18.
The Sensex ended 16371.51, down 90.20 points or 0.55 per cent. The 30-share index touched intraday low of 16164.99 and high of 16396.69.
The National Stock Exchange's Nifty ended at 4905, down 28.95 points or 0.59 per cent. The broader index touched a high of 4915.90 and low of 4837.95 in trade today.
According to analysts, the market may see some recovery after such a sharp fall this week. However, they advise traders to be cautious of any pull-back rally.
In the coming week, we will like to see if this bounce back that we have seen sustains. The odds do seem to be low. In case it is a shallow kind of sideways type pullback, which has great difficulty in moving up, then there would be merit in trying to short at the same level 4970-5000. Around those levels, we would like to see what kind of strength the market shows.
Selling pressure continued in the midcaps and smallcaps space on rumours that pledged shares were being sold due to margin pressure. Sharp correction was seen in shares of Pipavav DOC on rumours that promoters pledged shares were being sold. However, the management clarified that none of the promoters pledged shares have been revoked.
BSE Midcap Index was down 1.03 per cenet and BSE Smallcap Index was 1.90 per cent lower.
Amongst the sectoral indices, BSE Realty Index was down 1.59 per cent, BSE FMCG Index fell 1.39 per cent, BSE Metal Index declined 1.30 per cent and BSE Auto Index was 1.20 per cent lower. BSE Healthcare Index was up 0.19 per cent and BSE Oil&gas Index was 0.01 per cent up
BHEL (-3.06%), Tata Motors (-2.74%), Mahindra & Mahindra (-2.74%), ITC (-2.46%) and Tata Consultancy Services (-2.24%) were amongst the major Sensex losers.
Hero MotoCorp (3.05%), Tata Power (2.42%), Wipro (1.88%), Sun Pharma (1.36%) and HDFC (1.34%) were amongst the Sensex gainers.
Market breadth was negative on the BSE with 882 gainers against 1989 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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