Nifty closed at 5,257.90, down by 108.50 points or 2.02 percent over the previous day closing of 5,366.40, after witnessing a low of 5,195.90 and a high of 5,377.40. Sensex closed at 17,506.63, down by 363.90 points or 2.04 percent over the previous day closing of 17,870.53. It touched an intraday low of 17,314.38 and high of 17,925.17.
The markets’ breadth was negative. Out of 2,920 stocks traded, 554 stocks advanced, 2,286 stocks declined and 80 stocks remained unchanged. In Sensex, 3 stocks advanced and 27 stocks declined.
FIIs were net sellers with the tune of ` 512.57 crore (prov. cash market fig.)
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VIEWS FROM DIFFERENT BROKING HOUSES:
CANARA BANK SECURITIES (CanMoney): “Technically, Nifty witnessed a weak session, today, wherein our indices witnessed a broad based selling spree with higher volatility. After last sessions` weak closing, Nifty, again witnessed a decline today and closed with deep cut. Nifty breached the vital support level of 5,300 and 5,200, before closing above 5,250. Nifty failed to maintain the vital moving averages and closed below its 9, 14, 50 and 100 day’s SMA placed at 5,443, 5,481, 5,583 and 5,548. These levels may act as new ranges in the coming sessions. In today’s session, VIX closed at a little higher level of 22.86%, indicating higher than average volatility in market in the forthcoming sessions. RSI (14) for the session was at 29.39 levels and MACD was above the signal line, thus combined together they are giving the signals that, market may witness some recovery amidst range bound movements in coming sessions with higher volatility”.
FAIRWEALTH SECURITIES: “In the next session Nifty is expected to trade in the range 5232-5348. if sustains below the given range 5196 would act as support level. Further, 5177 should be treated as crucial support level for the day. If Nifty sustains above the given range 5386 and 5410 might act as strong resistance levels. Bank Nifty is expected to trade in the range 10400-10600. If sustains below this range 10335 may act as a crucial support. However, 10735 may act as another strong resistance level”.
BONANZA PORTFOLIO (Shanu Goel): “The undercurrent has weakened considerably. However, after a huge fall in a single day, a short term technical bounce back cannot be ruled out. Market sentiments continue to be influenced by global cues. Good support exists at 5,200-5,215 levels”.
KARVY STOCK: “The market will take cues from the global markets and is expected to open on a flat note tomorrow. Trade short in Nifty below 5,300 levels else around 5,330, with stop loss placed at 5,350, targeting 5,230-5,200 levels”.
KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE (Hemant Kanawala): “Equity market has been trading weak for last couple of days on the back of earnings concern but news of possible review of tax treaty with Mauritius acted as trigger for sharp correction today. Globally, markets are nervous due to concerns on Greece. Resolution of these issues over next couple of days with correction in valuation should provide support to market closer to Sensex of 17,000”.
SANLAM INVESTMENTS & ADVISORS INDIA (D K Aggarwal): “I think today’s fall is clearly showing the lack of investors (both domestic and foreign) conviction over the markets and any set of negative news can result into huge selling. It is advisable to remain cautious and vigilant”.
SWASTIKA INVESTMENT: “On daily charts, Nifty made a Long Black Candlestick with long lower shadow indicating acute selling pressure. Nifty was unable to hold the 5300 levels yesterday and it can be an important level for the coming session as well. For the coming trading session, if Nifty continues to trade consistently below the levels of 5300 then support for the index can be seen at 5230/5180 while it can face resistance at 5350/5400. Cautious trading in specific scrips with strict stop loss is recommended while investors need not enter into the current market until some decisiveness for the market is seen”.
GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): “The market unfolded as expected and achieved the downside target as expected… technically the market is still weak and 5100 could be a support zone to work but strong resistance is at 17810. The support for the Nifty is at 5170-5100 and resistance at 5300. The crucial support on the Sensex on the downside is 17230 and resistance at 17810”.
ANGEL BROKING (Mileen Vasudeo): “On the daily chart, we are observing a Head and Shoulder breakdown. This suggests weakness going ahead. The projected target for the said pattern is at around 16,300/4,800 level. However, on the downside, before testing the above mentioned level, indices have series of supports level. The neckline of the pattern which is at 17,800/5,350 remains the resistance level. Only a move above this level would negate the pattern. In coming trading session if indices trade below 17,314/5,195 level, then they are likely to test 17,295-17,000/5,177-5,100 levels. However a bounce up to 17,716-17,844/5,321-5,360 cannot be ruled out as the hourly chart is in an oversold zone”.
IIFL (Amar Ambani): “There was sheer panic in the Indian market today, thanks to the various media reports pertaining to a possible review of the double taxation avoidance agreement with Mauritius. Since a big chunk of India’s FDI and FII money comes from Mauritius, the news obviously rattled the investors. Also adding to the negativism is the lack of progress made by Greece in securing a fresh bailout from the EU and the IMF. The fact that the crash came on large volumes is a cause for concern. Hopefully, there will be more clarity on the Mauritius DTAA soon. For now, one has to be cautious”.
MICROSEC SECURITIES: “Nifty has broken its crucial support of 5300 on yesterday’s trading session. Yesterday’s volumes were also higher than last few days average volumes. So we expect the downward movement of Nifty would be continuing to 5120. However a successive move above 5370 would indicate the reversal of current trend and in that case Nifty may test the level of 5520 in the extreme short term. On an intra-day basis Nifty has a support at 5220 and is likely to face a stiff resistance near 5310. If Nifty breaks 5220, it may further go down to 5170 and then 5120. However, if it is able to sustain above 5310, the level of 5350–5375 would become the next target”.
BONANZA PORTFOLIOS (Puneet Kinra): “Nifty showed huge selling pressure and closed in red below 5,300 levels with higher volumes and very bearish market breadth. Sentiment may remain weak below 5,300-5,320 levels. On downside, support may be seen at 5,200-5,150 levels. On the other hand, if Nifty manages to maintain above 5,300-5,320 levels then recovery may be seen. For daily purpose, the trend deciding level is at 5,260. If Nifty shows strength above 5,260 levels, then rally to 5,300-5,320/5,400 levels may be seen. If Nifty does not show strength above 5,260 levels then selling pressure till 5,200/5,150/5,100 may also be seen”.
NIRMAL BANG SECURITIES: “Nifty future has broken its important down-ward support trend-line point of 5360 and going forward it seems that market is drifting lower to its important support level of 5125 where the long term support is placed. Today the markets have triggered to the close of 11 Feb 2011 of 5175 and bounced back smartly from the lows of 5182. Overall trend remains weak as huge selling pressure is witnessed at higher levels. This current downtrend could reverse only if nifty future trades above 5380 levels. On the lower side important support placed at 5125 levels”.
EDELWEISS FINANCIAL ADVISORS: “Further weakness is on cards and Nifty is likely to fall to about 5220. Just to put things in perspective, Nifty, after making a bottom of 5177 in February 2011, rose to made a high of 5944 in April 2011, which in fact turned out to be a lower top than the earlier top of 6338 made in November 2010. Now if Nifty breaks 5177, it would have confirmed a bearish lower-top lower-bottom formation on monthly charts. If this happens, the minimum retracement target would come to 4778, which is the 38.2% retracement level of the 2252-6338 up move that we have seen from October 2008 to November 2010. Therefore, it is necessary that Nifty maintains this 5200-5177 level. However, looking at the overall char pattern the chances of breakdown look higher”.
ANGEL BROKING (Daily Outlook): “The trend deciding level for the day is 17,627/5,277 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17,940-18,373/ 5,358-5,459 levels. However, if Nifty trades below 17,627/5,277 levels for the first half-an-hour of trade then it may correct up to 17,194-16,881/5,177-5096 levels”.
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