Oct 10, 2008

Markets hammered as Nifty closes below 4000 Markets witnessed a heavy sell-off on the back of negative global cues.

26 Sep 2008 | 19:03
Markets hammered as Nifty closes below 4000 Markets witnessed a heavy sell-off on the back of negative global cues.

Asian and European shares were beaten badly on uncertainties over USD 700 billion bailout package for US financial sector.

While the Sensex finally closed 445 points or 3.28% lower at 13,102.18, the Nifty lost 125.30pts or 3.05% to close at 3985.25. The broad market indices also ended lower as the BSE Midcap and Smallcap indices shed 2.99% and 3.11% respectively. Market breadth was negative as almost five stocks declined for every one stock that rose on the BSE. NSE cash turnover was Rs.10,500crs. Vs. Rs.15,311crs. on Thursday.

Barring the FMCG index , all the sectoral indices ended lower. The top losers were the Realty, Metals, Bankex and Capital goods indices. Gainers from the BSE-30 were ITC, HUL and ACC. Top losers were Ranbaxy, Sterlite, ICICI bank, Grasim, Hindalco and M&M.

Markets are now in the firm grip of the bears as the Nifty has broken the psychological level of 4000. While there could be some pullbacks, we believe the markets are likely to head lower in the coming sessions as the medium and long term trend continues to remain down. Any upsides are now likely to find resistance at 4100-4150 on the Nifty. We recommend avoiding fresh positional longs till we see evidence of a new uptrend.

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