Nifty closed at 4,944.15, down by 112.45 points or 2.22 percent over the previous day closing of 5,056.60, after witnessing a low of 4,932.15 and a high of 5,078.60. Sensex closed at 16,469.79, down by 371.01 points or 2.20 percent over the previous day closing of 16,840.80. It touched an intraday low of 16,433.31 and high of 16,916.81.
The markets’ breadth was negative. Out of 2,963 stocks traded, 679 stocks advanced, 2,180 stocks declined and 104 stocks remained unchanged. In Sensex, 4 stocks advanced and 26 stocks declined.
FIIs were net sellers with the tune of ` 488.67 crore whereas DII were net buyers of ` 330.42 crore on Thursday, the 18th August 2011(prov. fig.)
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VIEWS FROM DIFFERENT BROKING HOUSES:
KOTAK SECURITIES (Sanjeev Zarbade): “The sharp sell-off in the Indian markets came as a surprise as the global cues were not very negative. The markets opened in the positive zone but soon slipped into the red led mainly by banks. Banks came under selling pressure on concerns over damage to asset quality given significant exposure to the infrastructure sector. The infrastructure sector in turn is battling higher borrowing and material costs amidst rising competition and shrinking project pipelines. Another round of rate hike would add to the woes of this sector leading to a general increase in delinquency. Frontline IT stocks were down between 3-4% mainly on the back of expectations that the developed world is slipping into recession. Morgan Stanley slashed its global growth forecast for 2011 and 2012, saying the U.S. and the euro zone were ‘dangerously close to a recession’. The sell-off in Indian markets gained further momentum as the European markets opened weak and continued to drift down. By the time, the Sensex closed the DAX was down 4%”.
CANARA BANK SECURITIES (CanMoney): “Technically, today market witnessed volatile and a big bear candle. Right from morning bears dominated and they never allow bulls to take over the market. Today Nifty closed negative after yesterday’s positive closing, however in today’s fall the technical support level of 4920 was maintained and closed above this level. Nifty for the fourteenth successive session closed below the vital support levels of 9, 14, 50 and 100 day’s SMA placed at 5090, 5214, 5443 & 5544 levels; for any positive movement Nifty has to break and sustain above these levels. Along with mainline indices weakness was observed in small cap & mid cap stocks too. Indices closed with negative market breadth. This may support selling sentiments in coming sessions. In today’s session, VIX, the barometer of uncertainty, closed after correcting to 27.45 indicating more than average volatility in market in the forthcoming sessions. RSI (14) for the session was at 25.32 levels and MACD remained below the signal line, thus combined together they are giving the signals that; market may witness some range bound movement with negative bias in coming days”.
BONANZA PORTFOLIO (Shanu Goel): “World markets are witnessing influx of pessimistic news and data from one economy to another. Not only do most of the rating agencies have revised downwards India’s GDP growth to around 7% but also Morgan Stanley has downgraded India to underweight. These developments do not augur well for the uptrend in the market. Market remains in medium term downtrend. Domestic issues of high inflation coupled with weak global cues, continue to negatively affect the sentiments on the bourses. Below 4,950, next support exists at 4,780-4,810 levels”.
KARVY STOCK: “The market will take cues from the global markets and is expected to open on a flat to negative note tomorrow. Trade short in Nifty below 4,950, with stop loss at 5,000, targeting 4,930-4,900 levels”.
GEOJIT BNP PARIBAS FINANCIAL SERVICES (Alex Mathews): “Nifty today closed below its crucial support of 4,946 and now it is looking at psychological support of 4,900 below it can fall towards 4,842 and 4,786 levels while the resistance is there at 5,116 and 5,200 levels. One must note that, Morgan Stanley had cut its forecast for global growth this year citing insufficient European policy making and weakening investor confidence and apart from that it also cut its China growth forecast for next year. Things are not coming so easily and investors should have an investment perspective of more than one year”.
GEPL CAPITAL: “We had indicated a retest of 4946 and Nifty ended the day near the previous low today. It still appears weak and may drift down lower over the course of next few days. On the down side the range of 4890 to 4860 is a strong support for Nifty where there may be some sustained efforts for an up move. On the higher side the level of 5030 appears to be a stiff resistance for the immediate term. Till the time it trades below 5030 it continues to appear weak”.
IIFL (Amar Ambani): “The steep losses in India were part of a worldwide sell-off today that spread from Asia-Pacific to Europe. US stock futures tumbled, as trepidation about the global growth prospects and Europe’s sovereign debt crisis weighed on the sentiment. The dollar and the yen rose against most rivals as global risk appetite ebbed a little while gold was all set to advance for a fourth straight session amid continued safe haven buying. Now that the Nifty has slipped below 5,000, a level of 4,700-4,800 cannot be ruled out given the weak global backdrop and concerns over slowdown in the Indian economy. One must continue to trade cautiously as volatility is likely to persist. The broader market has been weak over the past few sessions. One should be careful while trading in this set of stocks as they tend to be volatile and illiquid”.
BONANZA PORTFOLIOS (Puneet Kinra): “Nifty showed selling pressure and closed below 5,000 levels. Bear had control throughout the day. Below 4,950 levels sentiment may remain weak. Traders should be cautious and trade with stop loss. On downside, Nifty has support in 4,800-4,700 zone. For daily purpose, trend deciding level is 4,950. If Nifty shows strength above 4,950 levels, then rally to 5,000/5,050/5,100 may be seen. If Nifty does not show strength above 4,950 levels then selling pressure till 4,900-4,870/4,800/4,750 may also be seen”.
INDIRATRADE SECURITIES: “The markets closed extremely weak on Thursday all sectoral indices closed negative by taking clues from the European market that were trading around 3% down. And Nifty closed below its 52 week low and psychological market of 5000. For today’s trade market likely to trade in the range between 4970 & 5040 in the upper side and 4910 & 4840 in the lower side”.
SWASTIKA INVESTMART: “On Daily charts, we can observe that the momentum indicator RSI is southbound. For the coming session, 4890 is the immediate support for Nifty and if this is broken on closing basis, next support is seen at 4840/4780. On higher levels, 5015 is the immediate resistance for it and any gains above these levels are likely to face stiff resistance at 5050/5105”.
HEM SECURITIES: “Frenzied selling in index pivotal pulled the market sharply lower in late trade. The 50-unit S&P CNX Nifty hit 14-1/2-month low below the psychological 5,000 mark. Data showing sustained selling by foreign funds this month also weighed on sentiment. Weakness in global stocks also hit sentiment adversely. Fears over global growth prospects and Europe's ongoing sovereign debt woes weighed on equity markets across the world. For tomorrow, markets are expected to be downward”.
HDFC SECURITIES: “Today, we expect the Indian Markets to open in the red following weak global cues. It could try and recover part of the loss during the later half of the day. Among the sectoral indices, IT stocks look weak while Auto stocks could bounce back”.
NIRMAL BANG SECURITIES: “Technically the trend has again turned very vulnerable as nifty future closes at 15-month low and ends below 5K. The market could see even lower levels, which cannot be ruled out. The trend is down, but selective buying is sensible around the 200 weekly averages of 4830 levels from a short term trading perspective. The important technical oscillator RSI on the daily and weekly chart is at 26 & 31 indicating markets at extreme over-sold zone. Chances are that nifty could see a smart bounce back around the 4700 region where buying is sensible. Bank Nifty @ 9571 has taken a sharp knock as the index was down 3.9%. Trend is in danger and chances are that we could see further 5-10% cut in coming days. Avoid buying into banking stocks. Strong support visible at 9000 levels”.
ANGEL BROKING (Daily Outlook): “The trend deciding level for the day is 16,607/4,985 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16,780–17,090/ 5,038–5,131 levels. However, if Nifty trades below 16,607/4,985 levels for the first half-an-hour of trade then it may correct up to 16,296–16,123/4,891–4,839 levels”.
BONANZA ONLINE: “Nifty showed selling pressure and closed below 5000 levels. Bear had control throughout the day. Below 4950 levels sentiment may remain weak. Traders should be cautious and trade with stoploss. On downside, Nifty has support in 4800-4700 zone. For daily purpose, Trend deciding level is 4950. If Nifty shows strength above 4950 levels, then rally to 5000/5050/5100 may be seen. If Nifty does not show strength above 4950 levels then selling pressure till 4900-4870/4800/4750 may also be seen”.
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