SENSEX 16863.30 -370.68
NIFTY 5087.30
-117.40
USD/INR 0049.75 +00.36
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UPDATEDTIME 09.28 PM 30 JANUARY 2012
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The Bombay Stock Exchange's Sensex snapped its six-day winning
streak and closed in the red on the back of weak cues from global peers and as
traders booked profits near resistance levels of 200-DMA. All the sectoral
indices closed in the red with capital goods, power, realty and metals stocks
leading the decline.
According to analysts, the benchmarks had run-up a lot and were in over-bought zone. The profit booking was on expected lines and is healthy for the market.
As far as today's correction is concerned, it was predicated because you had a ferocious rally. The signs were pretty much visible in the last two days of trading rally. Majority of sectors, where there was a good amount of value at around 4600-4700, had actually rallied by 20-30% and had smartly outperformed the market. To that extent, at least in the near term, there was quite a bit less of juice left for the bulls. This particular bout of profit booking was not only expected but is also healthy.
The Sensex closed at 16863.30, down 370.68 points or 2.15 per cent. The 30-share index touched a high of 17138.04 and low of 16828.33 in trade today.
The National Stock Exchange's Nifty ended at 5087.30, down 117.40 points or 2.26 per cent. The broader index touched a high of 5166.15 and low of 5076.70 intraday.
Today's selling has been much stronger than we had expected. This might actually continue to levels of about 5000. My belief still is that this remains a profit booking kind of a scenario.
We have rallied a lot, we were overbought, we have seen first leg of profit booking so we might actually readjust the lower target by a slight margin. 5000 on the downside now should be the levels where I think the intraday support should come in. We might see some reversal happening from those levels. So I would probably look for buying opportunities once we are closer to 5000.
BSE Midcap Index was down 1.96 per cent and BSE Smallcap Index moved 1.82 per cent lower.
Amongst the sectoral indices, BSE Capital Goods Index fell 5.55 per cent, BSE Power Index declined 3.54 per cent, BSE Realty Index slipped 3.10 per cent and BSE Metal Index moved 2.85 per cent lower.
According to analysts, the benchmarks had run-up a lot and were in over-bought zone. The profit booking was on expected lines and is healthy for the market.
As far as today's correction is concerned, it was predicated because you had a ferocious rally. The signs were pretty much visible in the last two days of trading rally. Majority of sectors, where there was a good amount of value at around 4600-4700, had actually rallied by 20-30% and had smartly outperformed the market. To that extent, at least in the near term, there was quite a bit less of juice left for the bulls. This particular bout of profit booking was not only expected but is also healthy.
The Sensex closed at 16863.30, down 370.68 points or 2.15 per cent. The 30-share index touched a high of 17138.04 and low of 16828.33 in trade today.
The National Stock Exchange's Nifty ended at 5087.30, down 117.40 points or 2.26 per cent. The broader index touched a high of 5166.15 and low of 5076.70 intraday.
Today's selling has been much stronger than we had expected. This might actually continue to levels of about 5000. My belief still is that this remains a profit booking kind of a scenario.
We have rallied a lot, we were overbought, we have seen first leg of profit booking so we might actually readjust the lower target by a slight margin. 5000 on the downside now should be the levels where I think the intraday support should come in. We might see some reversal happening from those levels. So I would probably look for buying opportunities once we are closer to 5000.
BSE Midcap Index was down 1.96 per cent and BSE Smallcap Index moved 1.82 per cent lower.
Amongst the sectoral indices, BSE Capital Goods Index fell 5.55 per cent, BSE Power Index declined 3.54 per cent, BSE Realty Index slipped 3.10 per cent and BSE Metal Index moved 2.85 per cent lower.
Sun Pharma (1.34%), Bajaj Auto
(0.48%), Jindal Steel(0.41%), Hero MotoCorp (0.13%) and Tata
Consultancy Services (0.06%) were the major gainers.
BHEL (-10.41%), Sterlite Industries (-5.99%) Larsen & Toubro (-5.37%), Hindalco Industries (-4.81%),Mahindra & Mahindra (-4.71%) and Reliance Industries(-2.71%) were the major Sensex losers.
Bharat Heavy Electricals reported 2 per cent increase in net profit at Rs.1,432.6 crore for the quarter ended Dec 31 against Rs 1,403 crore for the like period of the previous financial year. The total income stood at Rs 10,939 crore during the quarter under review up 19 per cent as compared to Rs 9,176 crore in the year ago period.
BHEL (-10.41%), Sterlite Industries (-5.99%) Larsen & Toubro (-5.37%), Hindalco Industries (-4.81%),Mahindra & Mahindra (-4.71%) and Reliance Industries(-2.71%) were the major Sensex losers.
Bharat Heavy Electricals reported 2 per cent increase in net profit at Rs.1,432.6 crore for the quarter ended Dec 31 against Rs 1,403 crore for the like period of the previous financial year. The total income stood at Rs 10,939 crore during the quarter under review up 19 per cent as compared to Rs 9,176 crore in the year ago period.
We believe BHEL would
report a declining revenue trend for FY13 and FY14E (-12%/ -5%) due to the
pressure on its order backlog, and this loss of operating leverage would lead
to a substantial contraction in returns (1290 bps decline in ROE over FY11-14E).
On the back of these results, we adjust our order inflow estimate for FY12E and we retain our 'Sell' rating on the stock with a target price of Rs 205.
The Oil ministry has asked Reliance Industries to immediately withdraw arbitration notice. The company had on November 24, 2011, sent the notice to the government to resolve issue of cost-recovery in the KG-D6 block.
Market breadth was negative on the BSE with 997 gainers against 1820 losers.
The European markets were in the red, in line with peers, ahead of European Union Summit. FTSE 100 was down 0.64 per cent, CAC 40 fell 0.92 per cent and DAX was 0.42 per cent lower.
On the back of these results, we adjust our order inflow estimate for FY12E and we retain our 'Sell' rating on the stock with a target price of Rs 205.
The Oil ministry has asked Reliance Industries to immediately withdraw arbitration notice. The company had on November 24, 2011, sent the notice to the government to resolve issue of cost-recovery in the KG-D6 block.
Market breadth was negative on the BSE with 997 gainers against 1820 losers.
The European markets were in the red, in line with peers, ahead of European Union Summit. FTSE 100 was down 0.64 per cent, CAC 40 fell 0.92 per cent and DAX was 0.42 per cent lower.
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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