CLOSING SESSION SUBDUED
Nifty lost more than 90 points to close below 7250, thus breaching the short term support of 7265 and becoming bearish. Derivative closing appears to have precipitated the fall. For short term, buying may be avoided till it closes above 7350. While Global cues, Quarterly results and Funds flow are expected to broadly guide the market movement, based on the present market position , market can be expected to be better during midsession and remain subdued towards close.
Nifty 7236 -94
Review for Thursday :: Bearish Bias … … !!!
After Two days’ of narrow movement, Market traded with clear
bearish bias from the opening and closed with a loss of about 1.40%. 36 of
Nifty stocks ended in the red and broader market too was negative with Advance Decline ratio at about 1:1.4.
Infy lost heavily and was the main reason for the negative sentiment in the
opening session. Media, Pharma, PSU Bank indices gained while IT, Infra, Energy,
Realty, Metal, Bank Nifty indices closed
weak for the day. Infy alone dragged
down Nifty by more than 30 points and Reliance, HDFC Bank and ICICI Bank
contributed another 20 points for the fall.
Hindalco, Dr Reddy, NTPC,, M&M, Sun Pharma remained gainers among Nifty stocks while Infy, Jindal Steel,
Ambuja Cement, HCL Tech, IDFC
remained major losers.
UCO Bank, Bank of India, Apollo Tyres, Allahabad Bank remained major gainers
among F&O stocks while Infy, Jain Irrigation, Adani Enterprises,
Tata Global, Crompton Greaves declined
among F&O stocks.
SENSEX LOGS BIGGEST DROP IN 4 MONTHS
The benchmark Sensex today
plunged 322 points, logging its biggest single-day drop in four months, weighed
down by a sharp 8 per cent sell-off in Infosys shares after a key executive
quit, amid expiry of monthly equity derivative contracts. The Sensex resumed
lower at 24,523.13 and continued to lose momentum to touch an intra-day low of
24,206.50. It settled at 24,234.15, down 321.94 points or 1.31 per cent -- its
biggest fall since the 426.11-point crash on January 27. This closing level is
Sensex's lowest since 24,298.02 on May 21. It had ended higher by 6.58 points
yesterday. The 50-share NSE index Nifty dipped below 7,300 mark by falling
94.00 points, or 1.28 per cent, to close at 7,235.65 after shuttling between
7,325.40 and 7,224.40 intra-day. It was bad session for IT stocks led by
Infosys. The Bangalore-headquartered giant ended 7.81 per cent lower to end below
the crucial Rs 3,000 mark for the first time since mid-September 2013 after
board member and President B G Srinivas, who was considered among the top
contenders for the first non-founder CEO post, resigned from the company. Wipro
fell by 2.63 per cent and HCL Tech, which is not a Sensex entity, slid 2.5 per
cent. However, TCS rose. Besides, expiry of May month series in the derivative
contracts and persistent foreign capital outflows coupled with mixed global
cues also affected the market sentiment, pulling down the benchmark indices.
Tepid earnings from some bluechips also dashed hopes, say traders. There was
also continued profit-booking in recent outperformers such as power, oil and
gas, capital goods, banking, PSUs, realty and consumer durable stocks, they
added. Out of the 30-share Sensex, 22 stocks closed with losses led by Infosys,
the third most influential on the barometer. Oil refinery major Reliance
Industries fell 1.42 per cent after CAG pulled up the firm for charging a rate
in excess of the government approved price for its KG-D6 gas field. Sectorally,
the BSE IT sector index suffered the most by falling 3.44 per cent, followed by
Tech index (2.92 per cent), Oil and gas index (1.64 per cent). Overall, 11 of
12 indices fell while BSE Healthcare index rose.
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