CAUTION
@ HIGHER LEVELS
Nifty
7992
-22
Nifty
opened higher and traded with negative bias thereafter to close with
a loss of about 0.25% and below 8000 mark. However, the short term
trend is positive and would become bearish only on a close below
7925. Nifty spot is expected to encounter resistance at 8030,,
8070 and find support at 7950, 7915 for Tuesday. 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 display zigzag movements with alternate bouts of
bullishness and bearishness.
SENSEX RETREAT FROM 6 DAY RALLY
The
benchmark Sensex today retreated from one-month highs and fell about
98 points to end at 26,752.90, logging its first drop in six
sessions, on losses in bluechips like HUL, Tata Motors and RIL and
caution ahead of the US Federal Reserve monetary policy meet. The NSE
Nifty fell by about 23 points to end below the key 8,000-level as
investors booked profits. Mixed Asian and weak European trends, after
tepid German business confidence data, were also among factors that
affected sentiments today. Shares of oil firms saw selling after
Goldman Sachs slashed 2015 oil price target. Alongwith Oil & Gas,
Realty, FMCG and Auto shares suffered the most while Consumer
Durables, Capital Goods, Banking and Power ended in the green. The
30-share Sensex resumed firm on initial rise in Asian stocks but
failed to cross 27K-mark, logging a high of 26,994.96. Late selling
on bearish European opening pulled it down to settle at 26,752.90,
recording a fall of 98.15 points or 0.37 per cent. The Sensex had
gained 851.71 points, or 3.28 per cent, in the previous five
sessions. The broader 50-issue CNX Nifty of the NSE fell back by
22.85 points, or 0.29 pe cent, to end at 7,991.70. The US Federal
Open Market Committee will meet tomorrow, October 28, 2014, for
two-day monetary policy review, expecting to end a long-running
stimulus programme. Domestic investors preferred to book profits and
decided to play safe ahead of expiry of derivatives on October 30,
2014, leading to fall in share prices, said brokers. Stocks of FMCG
giant, Hindustan Unilever tumbled about 4.75 per cent after it
forecast a softer demand environment. Shares of realty giant DLF
slumped 7.84 per cent on concerns the company may face probe in
Haryana land deals. Bucking the overall trend, stocks of companies
involved in defence sector like BEML rallied 5 per cent after
projects worth Rs 80,000 crore were cleared by the government. HMT
counter surged nearly 20 per cent to touch its highest trading
permissible limit for the day amid reports that the company may get
another lease of life.
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