FORENOON
BETTER
Nifty
7905
-2
While
Nifty closed flat for the day, broader market was quite weak with
negative Advance Decline ratio at about 1:1.9. Further, Nifty
has been closing in a tight range and a wide move can be
expected before derivative expiry. However, Nifty continued to close
above 7900 mark and short term weakness would set in only when
it closes below 7850 and further strength would be reinforced only
when it surpasses 7970. Nifty spot is expected to encounter
resistance at 7945, 7980 and find support at 7865, 7830 for
Wednesday. While Global cues and Funds flow are
expected to broadly guide the market movement, based on the present
market position, market can be expected to be generally better
in the forenoon and could encounter selling pressure towards close.
SENSEX
UP, NIFTY DOWN
The
benchmark Sensex today erased initial losses and closed about six
points up at a new closing peak of 26,442.81, extending gains for the
fourth straight session, on recovery in select metal and auto scrips
combined with buying in defensive sectors like FMCG and healthcare.
The S&P BSE 30-share barometer resumed lower in line with weak
Asian cues and moved in a range of 26,481.97 and 26,314.89. It ended
at new closing high of 26,442.81, logging a small rise of 5.79
points, or 0.02 per cent. In four straight sessions, the Sensex has
gained over 128 points. However, the broader 50-issue CNX Nifty of
the NSE eased for the second straight day and closed at 7,904.75, a
fall of 1.55 points, or 0.02 per cent. It moved between 7,862.45 and
7,915.45 intra day on alternate bouts of selling and buying. Brokers
said investors have slowly come to terms with the potential impact of
the Supreme Court's ruling on coal block allocations. As a result,
Hindalco, Tata Steel, JSW Steel, Hindustan Zinc and SAIL rebounded
from their early lows. However, some counters like Jindal Steel and
Bhushan Steel continued to suffer. Heavy selling was initially seen
after Competition Commission of India imposed Rs 2,545 crore fine on
14 car makers, including Tata Motors, Maruti Suzuki and Mahindra &
Mahindra, for violating trade norms in the spare parts and after
services market. However, short-coverings ahead of the expiry of
August contract on Thursday aided the smart recovery in auto as well
as metal stocks also, trader said. Some shares from power, capital
goods and refinery sectors attracted profit-booking while pharma and
FMCG were in demand as investors tried to seek safe refuge, they
added. "The Sensex closed marginally higher and CNX Nifty closed
marginally lower after witnessing intraday volatility...Going ahead,
volatility is expected to continue as F&O expiry and GDP numbers
are due on Thursday and Friday," said Jayant Manglik,
President-retail distribution, Religare Securities.
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