Nifty snapped Six day winning streak and fell marginally.
While Nifty recorded a fall for statistical purpose, broader market was strong
with higher Advances than Declines. Stop loss for Nifty long positions may be
kept at 7775 on close basis. Nifty’s further bullishness would be reinforced
only when it clears 7925. Nifty spot is expected to encounter resistance at 7915,
7950 and find support at 7835, 7800 for Thursday. While Global cues and
Funds flow are expected to
broadly guide the market movement, based on the present market position, market
could get buying support at lower levels and recover in Second half of the day.
FALL AFTER 7 DAYS
Markets dropped for the first time in seven
sessions today with Sensex falling 106.38 points to end at 26,314.29 and
Nifty easing by 22.20 points to 7,875.30 on profit taking at record
high levels, amid mixed global cues. Although, the benchmark indices
ended in the red, the total market breadth was positive on sustained
buying by retail investors in small cap and mid cap counters. Refinery,
FMCG, Auto and Capital Goods stocks attracted profit-booking while
select shares from pharma, power, realty and IT segments were in demand.
The BSE 30-share barometer resumed higher and immediately touched a
high of 26,504.52 on firm Asian cues on the back of rally on Wall Street
yesterday. Later, Sensex however met with strong resistance and fell
in negative territory for the rest of the day to settle at 26,314.29, a
fall of 106.38 points or 0.40 per cent. Yesterday, the 30-share
benchmark had ended at its all-time closing high of 26,420.67 and had
also logged intra-day life high of 26,530.67. In six sessions before
today, Sensex had jumped 1,091.53 points or 4.31 per cent on positive
global and local cues. "Domestic bourses were seen losing marginally in
a range bound session on Wednesday. In absence of any major cues,
traders preferred to maintain stock specific approach and focused mainly
on healthcare pack. After six days of successive rise, its normal to
see profit taking," said Jayant Manglik, President-retail distribution,
Religare Securities. Pharma stocks such as Dr Reddys, Cipla and Sun
Pharma ended up and were among biggest gainers in Sensex and Nifty.
Similarly, the 50-issue CNX Nifty of the NSE logged a life high of
7,915.80 in early trade before falling back to conclude down by 22.20
points, or 0.28 per cent, at 7,875.30. It had gained 329.25 points, or
4.35 per cent, in the previous six trading sessions to hit record highs
on successive days. In Asia, most indices edged higher following a
positive lead from Wall Street, where stocks picked up on encouraging US
data before a keynote speech this week by Fed chief. However, Europe's
main stock markets dipped at the start of trading after two days of
strong gains.
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