The key benchmark indices fell significantly as the RBI raised the key interest rates - the repo-rate and the reverse repo-rate by 50 basis points, which was more than the expected hike of 25 basis points.
FIIs were net sellers with the tune of ` 1178.66 crore (prov. cash market fig).
The BSE 30-share Sensex tumbled 463.33 points or 2.44% to 18,534.69, its lowest closing level since 24 March 2011. The Sensex lost 485.60 points at the day's low of 18,502.42, in late trade. The index rose 26.93 points at the day's high of 19,024.95 in morning trade. The S&P CNX Nifty was down 136.05 points or 2.39% to 5,565.25, its lowest closing level since 24 March 2011. The Nifty hit a low of 5,554.85 in late trade. The BSE Mid-Cap index fell 1.86% and the BSE Small-Cap index declined 2.08%. Both these indices outperformed the Sensex.
The market breadth, indicating the health of the market, was quite weak. On BSE, 2119 shares declined while 704 shares advanced. A total of 101 shares remained unchanged. Among the 30-member Sensex pack, 29 declined while only one rose.
BSE clocked turnover of ` 3097 crore, higher than ` 2421.42 crore on Monday, 2 May 2011
FOR DETAILS, “READ HERE”.
VIEWS FROM DIFFERENT BROKING HOUSES:
KOTAK SECURITIES (Dipen Shah): “The 50 bps increase in repo and reverse repo rates came in along expected lines. We share RBI`s concern that, sustained high inflation can create uncertainties in the economy and may impact investments and growth. The increase of 50 bps in savings interest rate was a surprise and is expected to have a marginal impact on the NIMs of banks. They may pass it on to the consumers in due course of time. Moreover, the revised provisioning norms will impact banks (mostly PSU banks) to some extent. We understand that, most private sector banks and large PSU banks follow a more conservative policy on provisioning. To that extent, they may not be impacted”.
CANARA BANK SECURITIES (CanMoney): “Technically, Nifty remained in its short term downward trend by closing on bearish note for the seventh continuous session. Yesterday, Nifty breached the vital support level of 5750, today it declined further and breached the sanctity of 5700 & 5600levels. In addition of losing the vital support of 5600, Nifty breached its 50 day’s SMA placed at 5630. Chart wise, Nifty is forming higher lows and lower highs, which is a bearish continuation pattern. Owing to today’s weak session, Nifty closed below its 9, 14, 50 & 100day’s SMA placed at 5791, 5793, 5630 & 5692. These levels may act as new resistances in the coming sessions. Once again, the bears outnumbered the bulls, which is a weakening trend for market. In today’s session, VIX moved a little higher and recorded at 21.58%, indicating lesser volatility in market in the forthcoming sessions. RSI (14) for the session was at 37.58 levels and MACD was below the signal line, thus combined together they are giving the signals that, market may witness range bound movements in coming sessions”.
FAIRWEALTH SECURITIES: “In the next session it is suggested to be CAUTIOUSLY BULLISH for the Nifty till the Nifty is above 5546. Next session’s range for the Nifty may be at 5546-5608 and support may at 5460 and on the upper side the resistance may be at 5650. In the next session, Bank Nifty is expected to trade in the range 10766-11159. There would be a high probability of a bounce back from 10766 level. However, beyond the given range 10550 may act as strong support level. And 11291 may be another resistance level”.
KARVY STOCK: “The market will take cues from the global markets and is expected to open on a flat to positive note tomorrow. Trade short Nifty below 5580 level else around 5600 level, with stop loss at 5630 targeting 5550-5500 levels”.
GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): “....‘Technically the market is still weak and the next line of defence if it breaks 5683 is 5652however a reaction is not ruled out as the market is in a typical sideways mode’ the market unfolded weak after a reaction and cracked…technically no sign of strength witnessed as yet and the next logical target on the downside is at 5540-5471. The support for the Nifty is at 5540-5471 and resistance at 5600. The crucial support on the Sensex on the downside is 18464-18257 and resistance at 18850”.
IIFL (Amar Ambani): “The RBI policy clearly highlights the concerns arising out of elevated inflation. The 50 bps hike in both repo and reverse repo rates should temper demand in the short to medium term. One has to be careful in dealing with interest rate sensitive sectors like Banking, NBFCs, Auto, Real Estate etc in the short term. The RBI is likely to continue with its hawkish stance going ahead also. Not only that, the policy is likely to remain tilted towards inflation control”.
MICROSEC SECURITIES: “The daily chart of Nifty is showing that it has made two gaps between 5484-5496 on 24th March, 2011 and 5529-5560 on 25th March, 2011. So the downward movement of Nifty might be continuing to 5484 and Nifty is expected to get a strong support near 5480 in the short term. Traders are advised to initiate long positions at the current level with a strict stop loss of 5480. On an intra-day basis Nifty has a support at 5530 and is likely to face a stiff resistance near 5590. If Nifty breaks 5530, it may further go down to 5500 and then 5480. However, if it is able to sustain above 5590, the level of 5620–5660 would become the next target”.
EDELWEISS FINANCIAL ADVISORS: “On the lower side Nifty is likely to face strong support in the vicinity of 5500-5520 level, the level (5500) which consists of the second highest OI (i.e. 45.09 lacs shares) among the Nifty put options. On the other hand on the higher side Nifty is likely to face strong resistance in the vicinity of 5600-5650 level, the level (5600 which consists of the second highest addition in OI (i.e. 28.91 lacs shares) among the Nifty Call Options”.
BONANZA ONLINE: “RBI hiked Repo Rate and Reverse Repo Rate by 50 BPS and huge selling pressure was seen in our market. Nifty showed selling pressure for 6th continuous session and closed in red. Nifty decisively closed below 5700 levels. For Daily Purpose, Trend deciding level is 5550. If Nifty shows strength above 5550 levels, then rally to 5650/5700/5750 levels may be seen. If Nifty does not show strength above 5550 levels then profit booking till 5500/5450/5400 may also be seen”.
ANGEL BROKING (Daily Outlook): “The trend deciding level for the day is 18,687/5,610 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18,872–19,210/ 5,666–5,766 levels. However, if Nifty trades below 18,687/5,610 levels for the first half-an-hour of trade then it may correct up to 18,350–18,165/5,510–5,454 levels”.
ANGEL BROKING (Daily Outlook): “The trend deciding level for the day is 18,687/5,610 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18,872–19,210/ 5,666–5,766 levels. However, if Nifty trades below 18,687/5,610 levels for the first half-an-hour of trade then it may correct up to 18,350–18,165/5,510–5,454 levels”.
FOR TECHNICALS, “READ HERE”
No comments:
Post a Comment