Oct 10, 2008

Sensex in the red while Nifty closes with a gain Markets ended on a mixed note amid extreme choppiness.

07 Oct 2008 | 18:38 Sensex in the red while Nifty closes with a gain Markets ended on a mixed note amid extreme choppiness.

Sensex in the red while Nifty closes with a gain Markets ended on a mixed note amid extreme choppiness. The Nifty managed to close above 3600 while the Sensex struggled to claw back above 12000 mark but failed to end above that level. The 50 bps CRR cut by RBI did not seem to have any major positive effect on the markets.

While the Sensex finally closed 106.46 points or 0.90% lower at 11,695.24, the Nifty ended with a marginal gain of 4.25pts or 0.12% to close at 3606.60. The broad market indices underperformed as the BSE Midcap and Smallcap indices lost 2.0% and 2.17% respectively. Market breadth was negative as more than two stocks declined for every one stock that rose on the BSE. NSE cash turnover was Rs.12,804crs. Vs. Rs.10,367crs. on Monday.

Most of the sectoral indices ended lower. The top losers were the BSE Capital goods, IT, Bankex, Realty and FMCG indices. The indices that gained were the BSE Oil and Gas and Power. The top losers from the BSE-30 were TCS, L&T, Sterlite, HDFC Bank, M&M and Satyam. The top gainers were NTPC, Ranbaxy, BHEL, Bharti Airtel and Reliance.

Markets were in indecisive mode today as evidenced by the extreme volatility and choppiness. The underlying trend nevertheless remains down and while there could be bounce backs in the coming sessions, we recommend using these upsides to exit from long positions entered into at higher levels and initiate fresh shorts.

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