Oct 10, 2008

Nifty finally ends with a gain after five sessions of consecutive losses

16 Sep 2008 | 17:26
Nifty finally ends with a gain after five sessions of consecutive losses

After opening sharply lower, markets took a U-turn and bounced back quite sharply to finally close on a flat note. The recovery was led by beaten down stocks like Reliance Industries, SBI, HDFC Bank, BHEL and Reliance Power. Markets had opened lower on account of bad global cues as credit concerns are still not over yet in the US financial space. The recovery was probably due to the fact that Dow Jones and Nasdaq Futures were trading marginally in the green thereby giving a positive indication that there might be a relief rally in US markets today.

While the Sensex finally shed 12.47 points or 0.09% at 13,518.80, the Nifty gained 2 pts or 0.05% to close at 4074.90. The broad market indices under performed as they ended with significant losses. The BSE Midcap and Smallcap indices lost 1.35% and 1.43% respectively. The market breath was poor, as A/D ratio was 0.51:1 on the BSE. NSE cash turnover was Rs.12,316 crs. Vs. Rs.11,936crs. on Monday.

The sectoral indices were a mixed bag. The outperformer of the day was BSE Oil and Gas and Bankex. The top losers were BSE Realty, Consumer Durables, Healthcare and Metals. Top Gainers from the BSE-30 were SBI, Sterlite and Reliance. The top losers were ICICI Bank, JP Associates, Maruti, Ranbaxy and Satyam.

The pullback that we were expecting happened today. The major trend nevertheless remains down and we recommend using these pullback rallies to lighten existing long positions and initiate fresh shorts. Any further upsides could find resistance at 4150-4200 on the Nifty