FIIs were net sellers with the tune of ` 170.05 crore (prov. cash market fig.).
The BSE Sensex lost 116.36 points or 0.63% to 18,268.54, its lowest level since 30 May 2011. The Sensex rose 14.12 points at the day's high of 18,399.02 in early trade. The index fell 202 points at the day's low of 18,182.90 in early afternoon trade. The S&P CNX Nifty was down 36.45 points or 0.66% to 5,484.60, its lowest level since 30 May 2011. The Nifty hit a low of 5,457.45 in intraday trade. The BSE Mid-Cap index fell 0.34% and the BSE Small-Cap index declined 0.46%. Both these indices outperformed the Sensex.
The BSE Sensex lost 116.36 points or 0.63% to 18,268.54, its lowest level since 30 May 2011. The Sensex rose 14.12 points at the day's high of 18,399.02 in early trade. The index fell 202 points at the day's low of 18,182.90 in early afternoon trade. The S&P CNX Nifty was down 36.45 points or 0.66% to 5,484.60, its lowest level since 30 May 2011. The Nifty hit a low of 5,457.45 in intraday trade. The BSE Mid-Cap index fell 0.34% and the BSE Small-Cap index declined 0.46%. Both these indices outperformed the Sensex.
The market breadth was weak. On BSE, 1659 shares declined while 1204 shares advanced and a total of 109 shares remained unchanged. The breadth was positive earlier in the day. Among the 30-member Sensex pack, 25 stocks fell while the rest of them rose.
BSE clocked turnover of ` 2624 crore, higher than ` 2359.01 crore on Thursday, 9 June 2011.
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VIEWS FROM DIFFERENT BROKING HOUSES :
HDFC SECURITIES: “Disappointing industrial output data for the month of April suggests that there is a slowdown in the economy. Even food inflation was more than 9% raising likelihood of basis points rate hike in June policy. The market could remain weak for the weak ahead on the back of poor economic data. Important support on Nifty is 5,450 while resistance is at 5,600”.
KOTAK SECURITIES (Sanjeev Zarbade): “Crude oil rose further during the week, thus aiding inflationary pressures and at the same time also squeezing government finances. The current macro condition of Indian economy is not the most desirable from a growth point of view. The growth is slowing down even as the inflation remains well entrenched. This could lead to Stagflation.
We believe Indian equities would continue to remain range-bound and may even weaken further given ongoing euro-debt crisis, fresh worries on US economic growth and domestic economic risks as outlined above”.
We believe Indian equities would continue to remain range-bound and may even weaken further given ongoing euro-debt crisis, fresh worries on US economic growth and domestic economic risks as outlined above”.
FAIRWEALTH SECURITIES: “Next session’s range of the Nifty may 5434-5495 with the resistance of 5517 and 5540.The crucial resistance of the Nifty will now be at 5570.The support level of the Nifty may at 5401-5411 if it breaks the level of 5434 and the other support may be at 5380.The key support level for the Nifty will be at 5348. Bank Nifty is expected to trade in the range 10610-10810 If sustains above this range it may face resistance at 10960 while 10575 may act another strong support level”.
BONANZA ONLINE: “Nifty is trading in 5325-5600 range for 5 consecutive weeks. Until Nifty decisively breakout or breakdown of range volatility may be continuing. For trading during the coming sessions, trend deciding level is 5500. If Nifty shows strength above 5500 levels then we may see rally to 5570/5650/5710/5750 levels. If Nifty doesn’t sustain above 5500 levels then profit booking till 5450/5400/5350/5300 may also be seen”.
Duration | Action | Entry Zone (NF) | For Target of | Stop Loss |
For Monday | Sell | 5480-5500 | 5430 | 5520 |
For the Week | Sell | 5500-5530 | 5400 | 5560 |
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 in Nifty below 5480 levels, with stop loss placed at 5500, targeting 5450-5430 levels. Alternatively trade long in Nifty if it holds 5500 levels, with stop loss placed at 5480, targeting 5530-5550 levels”.
ADITYA BIRLA MONEY (MONEY WEEKLY): “The market has been range bound in the last week, led by a cautious mood on the street. On the international front, investors are keenly watching the growth momentum in the US sans quantitative easing, the debt situation in Europe and developments in Arab countries (so as to get a sense on crude oil prices). On the domestic front, the focus is on the agitation against corruption (leading to stiff battle among the ruling, supporting and opposition political parties), scam investigations and macro development. Continuing higher inflation, deferment of key decisions by the govt (such as hike in fuel prices, key input materials for industry, etc) and lower than expected IIP data has kept fund flows muted. Last week, large cap IT companies have been the leaders, while Auto, Banking and Cement stocks have been laggards. For the next week, investors will pay attention to the RBI monetary policy and till then market is likely to remain range bound, taking cues from the international markets. We recommend investors to remain confined to quality stocks. Technical support for the Nifty lies at 5437 and 5363 and resistance at 5540 and 5575”.
ICICI SECURITIES: “The Nifty is likely to remain range bound. The immediate support for the index is at 5450/5400. On upsides, 5590/5650 should impose major resistances. The Bank Nifty has also shown volatile movement and saw a sharp decline towards 10700 towards the weekend. Sustainability below 10700 may prompt further downside towards 10500 levels. Important support levels for the Banking index lie around 10700/10200 while resistance can be experienced around 10900/11000”.
SMC ONLINE: “The domestic markets were range-bound and mostly under pressure around its resistances of 5600. The Nifty tested critical support at 5450 levels on Friday, and closed above the same. The Friday's trade witnessed selling pressure, with the Index ending the week on a marginally negative note. The range of 5400- 5600 will remain crucial in the near term. The market is expected to remain volatile this week. If the Index sustains below the 5500 mark, it could fall sharply to 5400 levels. On the contrary, a sustained move beyond 5600 levels is extremely crucial to determine any further uptrend in the broader index. In fact, technically, the 200-day EMA is also around the 5600 mark, while the 50-day EMA is around 5580 levels. The June contract ended the week at a discount of 1.00 points. The put-call ratio of open interest consolidated at the beginning of the week, but dropped during the weekend to close at 1.22. The options' open interest concentration continues to be at the 5400-strike put option, with open interest of above 87 lakh. This is followed by the 5300-strike puts, with open interest of above 65 lakh shares. Among call options, the highest open interest continues at the 5800 strike, with aggregate open interest of 73 lakh shares. This is followed by the 5600 strike with an open interest of 64 lakh shares, indicating that this level is a critical resistance to watch out for. The Implied Volatility (IV) of call options closed at 15.97% on Friday, while the average IV of put options was 19.00%. However, in our view, in the current scenario, the Index is expected to see stiff resistance around 5600 levels, while sustenance below the 5500 levels should take Nifty down towards 5400 levels”.
GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): “The market breached the 5500 mark and not the 5600 displaying weakness. ... technically the market cannot be considered up unless 5600 gets taken out with force and until then it should be logical to assume that the market may slide down towards the 5350 mark. The support for the Nifty is at 5350 and resistance at 5564-5600. The crucial support on the Sensex on the downside is 18000 and resistance at 18360”.
IIFL (Amar Ambani): “The key Indian indices may continue to remain lackluster amid lack of interest among the traders as well as investors. The recent trend of light trading volumes underscore a general lack of participation for the time being. A clear direction might emerge once the Nifty manages a decisive break out from the current trading range. The RBI could boost rates by 25 bps on June 16 as inflation continues to be sticky. Food inflation is back above 9%. Inflation data for May will be out on June 14”.
JRG EQUITY RESEARCH (IndiTrade): “After giving the impression of initial recovery, the Indian stock market gave way to bears and closed the week with slight loss. Most part of the trading week remained unenthusiastic. If nothing unexpected happens, the trend will remain the same for the week ahead also. After taking resistance from the 200-days Exponential Moving Average, the general market indices – NSE Nifty & BSE Sensex – had been trading in a very narrow range, with slight downward bias. The volume, since then, had been quite narrow. The MACD, even though is yet to turn negative, the momentum is fading. RSI has retracted from near the overbought region. The pattern formed by the Stochastic Oscillators is indicating towards a negative starting of the week ahead. The critical level for NSE Nifty for the coming week is expected to be 5440. The market will possibly stretch the downside further if fails to hold his level. If selling intensifies, the lower support for the market is seen at 5330. Even though a fall below this is not expected in the coming week, the chance for a break-down below this is not ruled out (possibly) within the couple of weeks to come. The first resistance for the index will be 5570. A break above this, even if happens, will find extreme challenge at 5610, which is the 200-days Moving Average for the index”.
INDIRATRADE SECURITIES: “Owing to weak global cues, the markets didn't make any clear headway during the week and remained range-bound. Both benchmark indices and most of the sectoral indices closed in the red. This week Nifty likely to trade in the range between 5700 in the upper side and 5300 in the lower side”.
EDELWEISS FINANCIAL ADVISORS (DERIVATIVE): “As anticipated and mentioned, markets witnessed a 'ranged activity' last week. Nifty posted mild 'losses' of 31 points (or 0.56% fall). Markets are trading indecisively for some time now. High Inflation, Slowing economy and weak global signals are likely to cast shadow on markets in the near term. Nifty has already broken below 5500 level mark. OI in INDEX FUTURES, in value terms went down by 2.66% to ` 16,084.76 crores over the week (Spot Nifty during the week witnessed a 'dip' of about 0.56%). This is suggestive of Unwinding of Long positions on INDEX FUTUREs. Significant addition in CALLs OI (of about 12%) at higher strikes suggests upside restricted above 5600 levels. Rise in 'Volatility' (VIX) suggests further downside for markets. FIIs actions in F&O suggest mild build-up of 'Longs' in STOCKS but 'unwinding' in INDEX FUTURES Overall F&O data suggests a 'ranged' action in the near term (in the range 5300~5600 levels of Nifty) with negative bias. Markets would be keenly watching headline Inflation data on 14 June and RBI mid-quarter policy review on 16 June. Action in markets also is likely to get influenced by progress of monsoon and global headwinds in the near term”.
EDELWEISS FINANCIAL ADVISORS: “Looking at Friday's close, it is likely that the weakness spills over to the next week and Nifty corrects some more. The nearest support to watch out, as mentioned above, is 5434, the 61.8% retracement level of the 5328-5605 up move. A correction beyond 5434 would be certainly beyond the comfort level and would reduce the significance of the higher-top made by Nifty earlier. Below 5434, the next support would come around 5360, emanating from the trend line adjoining 5177 and 5328, the bottoms of February and May 2011 respectively, as shown in the weekly chart below. If even 5360 do not hold, then we will be looking out for 5220 as the next support, emanating from the trend line adjoining 4675 and 4786, the bottoms of February and May 2010 respectively. On the upside, 5605 continues to be key resistance, a crossover of which would complete the higher-top higher-bottom formation. The advice for the traders is to wait for the crossover of 5605 on the upside before taking fresh long positions. Those who are holding trading long positions or want to bottom fish at current levels should keep a stop loss of 5434 on closing basis”.
SWASTIKA INVESTMENT: “On weekly charts, it formed an indecisive candle with higher upper shadow indicating that the sellers were aggressive for the whole week. For two consecutive weeks, the candles so formed are short bodied candles indicating narrow range of Nifty. The up sloping trend line will act as a strong support for the index in the coming week while the trend line joining the lower tops indicates resistance for it. Nifty will face Stiff Resistance in the range of 5550/5620 levels and a close above this level will only provide strength to it whereas on the downside immediate Support is seen at 5390/5330 levels and a decisive maintenance below these levels may continue the downfall for the index. For the coming week, selling pressure may continue to prevail at higher levels. High volatility can be witnessed as RBI monetary policy is scheduled next week”. 
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