SENSEX 17445.75
-477.82
NIFTY 5281.20 -148.10
USD/INR 0049.27 +00.27
|
UPDATEDTIME 09.28 PM 27 FEBRUARY 2012
|
The Bombay Stock Exchange's Sensex extended
its losing streak for fourth straight session on concerns of rising crude oil
prices and slowing global economy. The breach of psychological support levels
also pushed traders to book profits after the sharp rally in last two months.
While the technical charts may indicate that the immediate trend may be bearish, experts are of the view that fundamentally the rally in Indian market is here to stay.
Shankar Sharma, Global Trading Strategist, First Global, in an interview to ET Now said that the market may take out earlier highs of 2007-08 this year.
"This will be a seminal year for Indian equities relative to global equities and emerging market equities. This year will be a breakaway year for India. After spending 4.5 years in a bear market, my sense is that India will go back to being a market that everybody wants to be in rather than this scepticism that we have seen throughout the last quarter of 2011.
There continues to be a lot of scepticism amongst global investors about India with the rally and macro and current account deficit. The market will climb those walls very easily and we will end the year a lot higher than where we are now. We will do much better than almost every other equity market of consequence.
The market turned weak as brent crude oil prices hovered near $125 per barrel after prices surged to 10-month highs on supply concerns due to Israel-Iran standoff.
Comments from Christine Lagarde, Managing Director, International Monetary Fund, that the world economy is still in "the danger zone" led to profit taking across global equities.
Indian markets opened sideways to see profit booking in line with global markets after the IMF warned that the global risk of slowdown persists. Also there has been long unwinding for the past two days on concerns that high energy costs would hurt economic growth.
In fact long unwinding was seen from 17 Feb a few days prior to February settlement when Nifty touched a high of 5628. Short build up has been seen from 23 February when Nifty broke below the short term rising trend line at 5537.
The recent Multi Commodity Exchange's initial public offer has also sucked out some liquidity out of the system, points out D. K. Aggarwal.
The liquidity factor is another reason at the moment as MCX IPO has taken away close to Rs 35,000 crore from the markets and going ahead in mid-march advance tax payments of close to 50,000-60,000 crore may further exert pressure on liquidity. The correction in the markets is actually providing good opportunity to the investors who were left behind in the recent rally.
The Sensex closed at 17445.75, down 477.82 points or 2.67 per cent. It touched intraday high of 17975.19 and low of 17381.64.
While the technical charts may indicate that the immediate trend may be bearish, experts are of the view that fundamentally the rally in Indian market is here to stay.
Shankar Sharma, Global Trading Strategist, First Global, in an interview to ET Now said that the market may take out earlier highs of 2007-08 this year.
"This will be a seminal year for Indian equities relative to global equities and emerging market equities. This year will be a breakaway year for India. After spending 4.5 years in a bear market, my sense is that India will go back to being a market that everybody wants to be in rather than this scepticism that we have seen throughout the last quarter of 2011.
There continues to be a lot of scepticism amongst global investors about India with the rally and macro and current account deficit. The market will climb those walls very easily and we will end the year a lot higher than where we are now. We will do much better than almost every other equity market of consequence.
The market turned weak as brent crude oil prices hovered near $125 per barrel after prices surged to 10-month highs on supply concerns due to Israel-Iran standoff.
Comments from Christine Lagarde, Managing Director, International Monetary Fund, that the world economy is still in "the danger zone" led to profit taking across global equities.
Indian markets opened sideways to see profit booking in line with global markets after the IMF warned that the global risk of slowdown persists. Also there has been long unwinding for the past two days on concerns that high energy costs would hurt economic growth.
In fact long unwinding was seen from 17 Feb a few days prior to February settlement when Nifty touched a high of 5628. Short build up has been seen from 23 February when Nifty broke below the short term rising trend line at 5537.
The recent Multi Commodity Exchange's initial public offer has also sucked out some liquidity out of the system, points out D. K. Aggarwal.
The liquidity factor is another reason at the moment as MCX IPO has taken away close to Rs 35,000 crore from the markets and going ahead in mid-march advance tax payments of close to 50,000-60,000 crore may further exert pressure on liquidity. The correction in the markets is actually providing good opportunity to the investors who were left behind in the recent rally.
The Sensex closed at 17445.75, down 477.82 points or 2.67 per cent. It touched intraday high of 17975.19 and low of 17381.64.
The National Stock Exchange's Nifty ended at 5281.20, down 148.10 points
or 2.73 per cent. The broader index touched a high of 5449.80 and low of
5268.15 in trade today.
During the current week, the market initially may remain subdued and might fall to 5375 or 5320 if it breaks 5400. However, deep cut is possible if it breaks 5320 on a closing basis and in that case we may expect fall to 5200 levels which is 38.2% retracement of the entire rise between 4531 and 5630.
In case if Nifty refuses to break 5375 and reverses sharply because of any reason then it will have a strong buying indication for bulls and with a same stop-loss, contra traders can trade long for the target of 5560, 5580, 5630 and 5650 on the higher side.
If it closes above 5650 then it will change the overall direction of the market and all the way it will lift the market beyond 5740 to 5800 levels.
BSE Midcap Index fell 3.02 per cent and BSE Smallcap Index declined 3.26 per cent.
Amongst the sectoral indices BSE Realty Index fell 5.29 per cent, BSE Metal Index was down 4.86 per cent, BSE Power Index tripped 4.03 per cent and BSE Bankex moved 3.97 per cent lower. BSE FMCG Index gained 0.29 per cent.
Auto sector has been doubly hurt on likely hike in diesel/petrol prices following rise in global crude prices and also that excise duty on auto sector too may be hiked in the Union Budget.
Banking sector again saw a sell-off again on concerns that high crude oil prices would keep inflation high and RBI may not allow easing of the monetary policy.
Sesa Goa (-9.95%), SAIL (-7.08%), Hero MotoCorp (-6.58%), Reliance Power (-6.29%), Punjab National Bank (-6.29%) and IDFC (-5.97%) were the major Nifty losers.
Sterlite Industries and Sesa Goa were down on profit booking after its parent said it would merge duo to create 'Sesa Sterlite'. Shares of Sesa Goa plunged on debt concerns as the newly-formed entity 'Sesa Sterlite' will have debt which would be about 14 times the current debt of Sesa Goa. The boards of the two companies have approved the issue of three shares of Sesa Goa for every five shares held in Sterlite.
A group of ministers, headed by Finance Minister Pranab Mukherjee, on Friday cleared a new investment policy for the urea sector. The new urea investment policy is aimed at building capacities. At present, the country produces 22 million tonnes urea and imports 7 MT.
BPCL (1.74%), Cipla (1.40%), ITC (0.93%), Hindustan Unilever (0.12%) and Dr Reddy's Laboratories (0.04%) were the only index gainers.
Market breadth was negative on the NSE with 1291 losers against 206 gainers.
As per the provisional data, Foreign Institutional Investors bought shares worth net Rs 8955.29 crore on Friday. FIIs bought shares worth Rs 23438.90 crore so far in the month of February against investment of Rs 10357.70 crore in the month of January 2012.
During the current week, the market initially may remain subdued and might fall to 5375 or 5320 if it breaks 5400. However, deep cut is possible if it breaks 5320 on a closing basis and in that case we may expect fall to 5200 levels which is 38.2% retracement of the entire rise between 4531 and 5630.
In case if Nifty refuses to break 5375 and reverses sharply because of any reason then it will have a strong buying indication for bulls and with a same stop-loss, contra traders can trade long for the target of 5560, 5580, 5630 and 5650 on the higher side.
If it closes above 5650 then it will change the overall direction of the market and all the way it will lift the market beyond 5740 to 5800 levels.
BSE Midcap Index fell 3.02 per cent and BSE Smallcap Index declined 3.26 per cent.
Amongst the sectoral indices BSE Realty Index fell 5.29 per cent, BSE Metal Index was down 4.86 per cent, BSE Power Index tripped 4.03 per cent and BSE Bankex moved 3.97 per cent lower. BSE FMCG Index gained 0.29 per cent.
Auto sector has been doubly hurt on likely hike in diesel/petrol prices following rise in global crude prices and also that excise duty on auto sector too may be hiked in the Union Budget.
Banking sector again saw a sell-off again on concerns that high crude oil prices would keep inflation high and RBI may not allow easing of the monetary policy.
Sesa Goa (-9.95%), SAIL (-7.08%), Hero MotoCorp (-6.58%), Reliance Power (-6.29%), Punjab National Bank (-6.29%) and IDFC (-5.97%) were the major Nifty losers.
Sterlite Industries and Sesa Goa were down on profit booking after its parent said it would merge duo to create 'Sesa Sterlite'. Shares of Sesa Goa plunged on debt concerns as the newly-formed entity 'Sesa Sterlite' will have debt which would be about 14 times the current debt of Sesa Goa. The boards of the two companies have approved the issue of three shares of Sesa Goa for every five shares held in Sterlite.
A group of ministers, headed by Finance Minister Pranab Mukherjee, on Friday cleared a new investment policy for the urea sector. The new urea investment policy is aimed at building capacities. At present, the country produces 22 million tonnes urea and imports 7 MT.
BPCL (1.74%), Cipla (1.40%), ITC (0.93%), Hindustan Unilever (0.12%) and Dr Reddy's Laboratories (0.04%) were the only index gainers.
Market breadth was negative on the NSE with 1291 losers against 206 gainers.
As per the provisional data, Foreign Institutional Investors bought shares worth net Rs 8955.29 crore on Friday. FIIs bought shares worth Rs 23438.90 crore so far in the month of February against investment of Rs 10357.70 crore in the month of January 2012.
Regards
RAKESH MAKIN
+91,
9041667797(DIRECT), 9915684997
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
No comments:
Post a Comment