Oct 10, 2008

Bears in attack mode

06 Oct 2008 | 00:00 Bears in attack mode

A big carnage was seen on Dalal Street today as the bears took complete control. Jittery global markets played a key role in today’s fall as markets across Asia and Europe were all trading sharply lower. While the Sensex finally closed 724.62 points or 5.78% lower at 11,801.70, the Nifty lost 215.95 pts or 5.66% to close at 3602.35. The broad market indices also ended sharply lower as the BSE Midcap and Smallcap indices lost 7.13% and 6.92% respectively. Market breadth was pathetic as more than eight stocks declined for every one stock that rose on the BSE. NSE cash turnover was Rs.10,367crs. Vs. Rs.11,892crs. on last Friday.

All the sectoral indices ended lower. The top losers were the BSE Consumer Durables, Realty, Metals, Capital goods and Power indices. The top losers from the BSE-30 were Sterlite, Reliance Infra, JP Associates, Tata steel, DLF and Tata Power. There were no gainers from the BSE-30 index.

The bears continue to remain in control as the main indices have made new 2008 lows. While there could be bounce backs in the coming sessions, the underlying trend continues to remain down. We recommend using any upsides to exit from long positions entered into at higher levels and initiate fresh shorts.