SENSEX 15727.85 -146.10
NIFTY 4705.80
-44.70
USD/INR 0053.42 +00.30
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UPDATEDTIME 09.28 PM 28 DECEMBER 2011
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The Bombay Stock
Exchange's Sensex ended choppy session in the negative territory ahead of
December series expiry. Gains in power and capital goods stocks were offset by
losses in metals, banks and oil&gas space.
According to analysts, the trend is bearish and the downtrend would resume after the recent pull-back rally.
At higher levels, the bulls are finding it increasingly difficult and now we are looking for reasons to go down, whether it is not giving constitutional status to the Lokpal or it is January blues which are likely to set in soon but there is a distinct bias towards the downside. Broadly we are doing this range of 4700 to 4800. The moment we start coming below 4700, you would have triggered shorts although we continue to carry out Bank Nifty shorts. You basically had 5 to 6-day pullback on the upside and now it seems that the next down leg is starting.
However, the New Year 2012 looks promising than 2011 the view that the market may be somewhere closer to making a bottom.
It must improve because we have had a pretty severe beating in 2011. Valuations have corrected and there is no reason to believe that things cannot turn around in 2012. So it feels nice to start the year with a little optimistic note and take whatever comes in the way, who knows how 2012 will shape up, but my sense is that we are loaded in favour of a little positive for 2012 than 2011.
One thing which makes me little more bullish is that there is lot of pessimism around and there are a lot of rumours. When things come to a stage where rumours run the market, then we are somewhere closer to making a bottom and at least stabilise the market and go forward from here.
The Sensex closed at 15727.85, down 146.10 points or 0.92 per cent. The 30-share index touched intraday low of 15666.46 and high of 15887.80.
The National Stock Exchange's Nifty ended at 4705.80, down 44.70 points or 0.94 per cent. The broader index touched a high of 4756.20 and low of 4685.65 in trade today.
BSE Midcap Index was down 1.06 per cent and BSE Smallcap Index moved 1.12 per cent lower.
Amongst the sectoral indices, BSE Metal Index was down 2.05 per cent, BSE Bankex fell 1.98 per cent and BSE Oil&gas Index slipped 1.63 per cent. BSE Power Index was up 0.78 per cent and BSE Capital Goods Index moved 0.32 per cent higher.
Banking stocks came under pressure on reports that the Reserve Bank of India ( RBI) has ordered banks to set aside more capital for their investments in financial entities, in an attempt to strengthen the ring fence around banks.
The Reserve Bank of India said the banks from now on shall set aside 25% more capital after the central bank raised the risk weight for buying or holding of equity in financial entities.
Jindal Steel (-7.07%), ICICI Bank (-3.88%), Hindalco Industries (-2.51%), Mahindra & Mahindra (-2.39%) and Wipro (-2.28%) were major Sensex losers.
NTPC (2.68%), BHEL (2.26%), Tata Power (1.61%), Cipla (1.20%) and DLF (0.71%) were the major gainers.
Market breadth was negative on the BSE with 1055 gainers against 1667 losers.
According to analysts, the trend is bearish and the downtrend would resume after the recent pull-back rally.
At higher levels, the bulls are finding it increasingly difficult and now we are looking for reasons to go down, whether it is not giving constitutional status to the Lokpal or it is January blues which are likely to set in soon but there is a distinct bias towards the downside. Broadly we are doing this range of 4700 to 4800. The moment we start coming below 4700, you would have triggered shorts although we continue to carry out Bank Nifty shorts. You basically had 5 to 6-day pullback on the upside and now it seems that the next down leg is starting.
However, the New Year 2012 looks promising than 2011 the view that the market may be somewhere closer to making a bottom.
It must improve because we have had a pretty severe beating in 2011. Valuations have corrected and there is no reason to believe that things cannot turn around in 2012. So it feels nice to start the year with a little optimistic note and take whatever comes in the way, who knows how 2012 will shape up, but my sense is that we are loaded in favour of a little positive for 2012 than 2011.
One thing which makes me little more bullish is that there is lot of pessimism around and there are a lot of rumours. When things come to a stage where rumours run the market, then we are somewhere closer to making a bottom and at least stabilise the market and go forward from here.
The Sensex closed at 15727.85, down 146.10 points or 0.92 per cent. The 30-share index touched intraday low of 15666.46 and high of 15887.80.
The National Stock Exchange's Nifty ended at 4705.80, down 44.70 points or 0.94 per cent. The broader index touched a high of 4756.20 and low of 4685.65 in trade today.
BSE Midcap Index was down 1.06 per cent and BSE Smallcap Index moved 1.12 per cent lower.
Amongst the sectoral indices, BSE Metal Index was down 2.05 per cent, BSE Bankex fell 1.98 per cent and BSE Oil&gas Index slipped 1.63 per cent. BSE Power Index was up 0.78 per cent and BSE Capital Goods Index moved 0.32 per cent higher.
Banking stocks came under pressure on reports that the Reserve Bank of India ( RBI) has ordered banks to set aside more capital for their investments in financial entities, in an attempt to strengthen the ring fence around banks.
The Reserve Bank of India said the banks from now on shall set aside 25% more capital after the central bank raised the risk weight for buying or holding of equity in financial entities.
Jindal Steel (-7.07%), ICICI Bank (-3.88%), Hindalco Industries (-2.51%), Mahindra & Mahindra (-2.39%) and Wipro (-2.28%) were major Sensex losers.
NTPC (2.68%), BHEL (2.26%), Tata Power (1.61%), Cipla (1.20%) and DLF (0.71%) were the major gainers.
Market breadth was negative on the BSE with 1055 gainers against 1667 losers.
Regards
RAKESH MAKIN
+91,
9041667797(DIRECT), 9915684997
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
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