Nifty closed at 5,118.50, down by 92.75 points or 1.78 percent over the previous day closing of 5,211.25, after witnessing a low of 5,054.05 and a high of 5,204.20. Sensex closed at 16,990.18, down by 315.69 points or 1.82 percent over the previous day closing of 17,305.87. It touched an intraday low of 16,759.45 and high of 17,247.87.
The markets’ breadth was negative. Out of 2,942 stocks traded, 661 stocks advanced, 2,199 stocks declined and 82 stocks remained unchanged. In Sensex, 6 stocks advanced and 24 stocks declined.
The markets’ breadth was negative. Out of 2,942 stocks traded, 661 stocks advanced, 2,199 stocks declined and 82 stocks remained unchanged. In Sensex, 6 stocks advanced and 24 stocks declined.
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VIEWS FROM DIFFERENT BROKING HOUSES :
KOTAK SECURITIES (Sanjeev Zarbade): “The Sensex touched a low 16,800 during the day. However, the markets recovered smartly and at one point of time had almost erased the losses. But the recovery faltered soon and another round of sell-off started. This time, the selling pressure in European market was the trigger. It is likely to be an eventful week for the markets as important data points are lined up. In the US, the Fed meeting would be closely watched for any cues on QE3. In India, the IIP data would be released this week. Given this, markets may remain volatile this week. From India’s point of view, any sharp correction in crude would be significant relief and a silver lining”.
BONANZA PORTFOLIO (Shanu Goel): “Global developments continue to play important role in sentiment preparation. The medium term trend of the market has become bearish. Nifty is likely to consolidate within the range of 4,950-5,250. Stock specific approach is advised in the current market scenario”.
BONANZA PORTFOLIO (Shanu Goel): “Global developments continue to play important role in sentiment preparation. The medium term trend of the market has become bearish. Nifty is likely to consolidate within the range of 4,950-5,250. Stock specific approach is advised in the current market scenario”.
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 5,150 levels, with stop loss at 5,170, targeting 5,130-5,100 levels”.
GEOJIT BNP PARIBAS FINANCIAL SERVICES (Alex Mathews): “Below 5,116, Nifty had support only at 5,000 but it got interim support at 5,050 and crawled back. Even now the sentiment hasn’t changed and the element of fear remains intact in the minds of the investors which is evident from the 53.24% jump in Nifty VIX in the past one week. Markets are oversold and investors may start value picking stocks around 5,000 levels”.
GEOJIT BNP PARIBAS FINANCIAL SERVICES (C J George): “The events that have unfolded in the West are in favour of the Indian markets in the long term, India being fundamentally strong among its peers resulting in more international inward financial flows. The strengthening of the Indian currency against the US dollar will help act as a trigger. In case there is any nervousness in the market, as happened in 2004 and 2008, it will be another opportunity for all classes of investors to make aggressive buying”.
GEPL CAPITAL: “After Nifty breached the critical level of 5300 last week it remained under firm grip of bears. Today it made a intraday low of 5054 and bounced back. In the immediate term there is possibility that Nifty may bounce back till 5200 to 5244 level. However such a bounce may not be sustainable and may give way to yet another round of selling which can take the Nifty down to 5050 levels and lower. On the downside the level of 4890 is now a major support for Nifty in case of further declines. We recommend abstaining from buying for at least next few days till some signs of stability emerge".
GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): “The market opened with a massive gap down and it tried climbing up but somehow has stayed negative. Technically the market is over stretched and has the potential to bounce back and so if the market sees a dip then that dip could be bought a tight bounce back. Strong support is around 5000. The support for the Nifty is at 5000-4778 and resistance at 5250-5340. The crucial support on the Sensex on the downside is 16620-15986 and resistance at 17500-17737”.
IIFL (Amar Ambani): “For the week, one must keep an eye on the Federal Reserve’s policy meeting and Chinese data on Tuesday. For India, the IIP data on Friday will be a key monitor apart from the remaining quarterly earnings and any possible announcement from the Government’s side. Markets will remain volatile as the overseas situation remains fragile. Further correction in crude oil and other commodities will have a dampening effect on inflation in India”.
MICROSEC SECURITIES: “Yesterday the bears were dominated the entire market. Now the short term crucial support of Nifty lies at 5050. If Nifty breaches 5050, the downward movement would be continuing and Nifty may test the level of 4960 and then 4840 in the extreme short term. However some leading indicators (like Stochastic & RSI) are giving oversold signal of Nifty. So some pull back rally to 5330 can not be ruled out. Traders are advised to maintain a stop loss at 5050 of the long positions. On an intra-day basis Nifty has a support at 5090 and is likely to face a stiff resistance near 5150. If Nifty breaks 5090, it may further go down to 5050 and then 5010. However, if it is able to sustain above 5150, the level of 5180–5220 would become the next target”.
ANGEL BROKING (Dinesh Thakkar, CMD): “Unlike in the last crisis which came at the peak of the bull market when valuations were quite expensive, this time around valuations are already at reasonable levels. Yes, markets could be re-calibrated a little lower since growth prospects in the near-term look a little weaker, but I do not expect a Lehman-like situation. The US and Euro problems do add to near-term uncertainty which will lead to range-bound movement in our markets in the near-term. At the same time, due to a US slowdown, lower commodity prices would be beneficial for India. For India, domestic issues of high inflation and interest rates are having a more direct impact on our growth prospects and I see these peaking in the next quarter or two, until when markets could remain range-bound. From there onwards, the trajectory of our growth in FY2013 is expected to take our markets higher. In my view, there is decent upside in the markets for a long-term investor and this is a good time for bargain-hunting to add quality stocks to one’s long-term portfolio”.
BONANZA PORTFOLIOS (Puneet Kinra): “Nifty showed selling pressure for sixth consecutive day and closed in red below 5,150 levels. Despite Nifty is trading in oversold zone still it not showing sign of recovery. However, traders should be cautious. If Nifty does not recover then selling pressure till 5,050-4,950 may be seen. For daily purpose, trend deciding level is 5,100. If Nifty shows strength above 5,100 levels, then rally to 5,150/5,200/5,250 levels may be seen. If Nifty does not show strength above 5,100 levels then selling pressure till 5,050/5,000/4,950/4,900 may also be seen”.
SWASTIKA INVESTMART: “On Daily charts, we can observe that the momentum indicator RSI is in the oversold region. For the coming session, 5055 is the immediate support for Nifty and if this is broken on closing basis, next support is seen at 5000/4960. On higher levels, 5200 is the immediate resistance for it and any gains above these levels are likely to face stiff resistance at 5260/5320”.
HEM SECURITIES: “Fresh selling during the last one hour of trade derailed a strong intraday rebound after a steep initial sell-off dragged the key benchmark indices to 14-month lows. Stocks fell across the globe as a downgrade of the US credit rating by Standard & Poor's on Friday, 5 August 2011, led investors to reduce exposure to assets perceived as risky and escalated worries about global economic outlook. For tomorrow, markets are expected to be down”.
TATA AIG LIFE INSURANCE: “In an unprecedented move on Friday, Standard & Poor’s rating agency (S&P) downgraded the US long-term debt rating by one notch to AA+ from AAA while maintaining a negative outlook. Strangely, the downgrade of the US debt is not necessarily bad news across the globe, in the medium term. While it generally signals a weakening US macro and thereby impacts the key exporting countries dependent on a vibrant US economy, it could act as a dampener to commodity prices, especially crude oil. With Indian macro economy greatly impacted by the price of crude, any softening of crude prices is structurally a big plus for India. It lowers the headline inflation, improves the fiscal situation and reins in the oil import bill. It provides breathing space for RBI with an effect to pause its anti-inflationary policy and halts its rate increases. With consumption being the biggest driver of the Indian GDP, any pause or even reversal in the rate hike cycle is clearly a positive for the Indian growth trajectory as lower interest rates fuel consumption in many product categories”.
CANARA BANK SECURITIES (CanMoney): “Technically, lower highs and higher lows pattern continued in today’s trade and as per ongoing bearish trend, Nifty witnessed yet another weak show. Despite low RSI, heavy selling with good volumes took Nifty hard and it drifted into red zone. In today’s trade, Nifty lost its vital supports of 5100 but it regained it on account of recovery in intraday trade. Today’s weak candle further supported the hypothesis of elongated bearishness in our market. On account of weakness, Nifty for the ninth successive session closed below the vital support levels of 9, 14, 50 and 100 day’s SMA placed at 5395, 5468, 5510 & 5572 levels; this may continue to spoil the recovery sentiments in forthcoming sessions. On account of weakness in small cap & mid cap, today Bears completely knocked down the bulls, because of which, Indices closed with extensively weak market breadth. This may hamper any recovery sentiments in coming sessions. In today’s session, VIX, the barometer of uncertainty, closed at a higher level of 24.90%, indicating more volatility in market in the forthcoming sessions. RSI (14) for the session was at 25.66 levels and MACD remained below the signal line, thus combined together they are giving the signals that; market may witness some temporary relief but to discontinue its weak trend it has to decisively overcome the resistance of 5450”.
INDIRA SECURITIES: “Fear of recession in America created a situation of panic selling and Indian markets opened with significant losses. After European markets opened positive, both benchmark indices made a recovery. However, they could not maintain those levels and closed with a loss of more than 1.8%. IT and realty were the biggest losers in Monday's trade, though all sectoral indices closed negative. For today’s trade market likely to trade in the range between 5150 & 5210 in the upper side and 5090 & 5050 in the lower side”.
ANGEL BROKING (Daily Outlook): “The trend deciding level for the day is 16,999/5,126 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17,239–17,488/5,197–5,276 levels. However, if Nifty trades below 16,999/5,126 levels for the first half-an-hour of trade then it may correct up to 16,750–16,511/ 5,047–4,975 levels”.
HDFC SECURITIES: “Today, we expect the Indian Markets to open in the red following weak global cues. Later it could recover during the day. Among the sectoral indices, Banking, Capital Goods and IT stocks could underperform”.
NIRMAL BANG SECURITIES: “The sell-off continues as renewed selling in Dow and European markets sent bulls running for cover. The intermediate trend looks very bearish but strong support for nifty future seen at 5055–5011 levels and unless we see a breakdown and close below 4990 - 4960, any decline should be used as a buying opportunity. On the higher side nifty future will face resistance at 5140-5190 levels and stability above this point might provide a big rally up to 5330–5370 levels in the near term. On a weekly chart, support for nifty future seen at 4850 if breaks 4990 on the closing basis. For Sensex @ 16990, strong support exits at 16630-16440 where investment buying is sensible and resistance seen at 17200”.
BONANZA ONLINE: “Nifty showed selling pressure for 6th consecutive day and closed in red below 5150 levels. Despite Nifty is trading in oversold zone still it not showing sign of recovery. However, traders should be cautious. IF Nifty does not recovery then selling pressure till 5050-4950 may be seen. For daily purpose, Trend deciding level is 5100 .If Nifty shows strength above 5100 levels, then rally to 5150/5200/5250 levels may be seen. If Nifty does not show strength above 5100 levels then selling pressure till 5050/5000/4950/4900 may also be seen”.
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