Oct 10, 2008

Blood on the streets

15 Sep 2008 | 18:57
Blood on the streets

Indian markets witnessed a blood bath today on the back of financial woes in the US financial space. The news of Lehman Brothers filing Chapter 11 bankruptcy played a big role in today's session. This news has affected Asian and European markets as well. The recovery seen in the afternoon session helped curb the losses.

While the Sensex lost 469.54 points or 3.35% at 13,531.27, the Nifty shed 3.68% to close at 4072.90. The broad market indices too ended lower as the BSE Midcap and Smallcap indices lost 4.49% and 4.93% respectively. The market breath was poor, as A/D ratio was 0.16:1 on the BSE. NSE cash turnover was Rs.11,936crs. Vs. Rs.12,451crs. on last Friday.

The Sectoral indices continued to bear the brunt of selling pressure as all of them ended lower. The biggest losers were the Realty, IT, Metal and Power indices. The indices that lost the least were the FMCG, Auto, Oil and Gas and Healthcare indices. Gainers from the BSE-30 were Maruti, HDFC and ACC. The top losers were Rel Infra, Satyam, Ranbaxy, DLF, JP associates and ONGC.

With the Nifty breaking the crucial supports of 4200, the markets are now in a firm downtrend. While there could be some pullbacks, the Nifty seems to be now headed towards the 3800 levels. We recommend avoiding fresh long positions till we see signs of strength. Aggressive traders can look for shorting opportunities on any upmoves in the market.