The benchmark 30-share index, BSE Sensex declined 302.31 points or 1.84% at 16,151.45 with 22 components registering drop. Meanwhile, the broad based NSE Nifty fell by 93.75 points or 1.90% at 4,849.50 with 37 components posting drop.
FIIs were net sellers with the tune of ` 825.89 crore whereas DII were net buyers of ` 295.34 crore on Monday, the 3rd October 2011(prov. fig.)
VIEWS FROM DIFFERENT BROKING HOUSES:
HDFC SECURITIES: “Today, we expect the Indian Markets to open sharply in the red following weak Global cues. The underlying trend for the day remains bearish. Among the sectoral indices, Metals and Realty stocks could underpferform”.
KOTAK SECURITIES (Sanjeev Zarbade): “Markets started the day on weak global cues as the US markets had closed around 2% lower on Friday. Asian markets were also trading sharply lower. European indices opened in the red after draft budget figures showed Greece would miss its deficit targets this year, which might necessitate additional bailout funds from its international lenders. Should Greece fail to get additional financing from the international lenders or if the private sector failed to agree to a bigger haircut on its debt, it might be forced to default. Sector wise, metal stocks were among the major losers. ADAG companies recovered some lost ground after the previous week’s sell-off”.
CANARA BANK SECURITIES (CanMoney): “Technically, after making a weak candle in last session, today Nifty exhibited its weakness further and closed on red note. Nifty failed in originating any recovery rally and thus lost its sentimental level of 4900. Inline to a weak show, Bears maintained their supremacy over bulls to regain the full control of the market and because of this, Indices closed with negative market breadth. In today’s session, Nifty not only lost its vital supports of 4900 and 4920 but also closed below the vital supports of 9 & 14 day’s SMA placed at 4943 and 4988. 50 & 100 day’s SMA levels were recorded at 5115 & 5311 levels, i.e. above the Nifty closing; these may be the resistances in forthcoming sessions. Selling was evident in large Caps, small cap & mid cap and most of the Sectoral indices too closed on weak note. In today’s session, VIX, the barometer of uncertainty, closed at a little corrected level of 35.07, but it still indicates a more than average volatility in market in the forthcoming sessions. RSI (14) for the session was at 41.08 levels and MACD closed below the signal line, thus combined together they are giving the signals that market may continue to witness consolidation in forthcoming session”.
BONANZA ONLINE: “Bulls and bears have been indecisive after market opening. On upside, Nifty has resistance in 4900-4950 levels and on downside Nifty has support in 4800-4850 zone. Volatility may be continuing in 4800-4950 zone. Below 4800levels, selling pressure may accelerate. For daily purpose, Trend deciding level is 4850. If Nifty shows strength above 4850 levels, then rally to 4900/4950/5000 may be seen. If Nifty does not show strength above 4850 levels then selling pressure till 4800/4750/4700 may also be seen”.
BONANZA PORTFOLIO (Shanu Goel): “Global turmoil is making the markets highly volatile. October being the result month is expected to be all the more volatile going ahead. The developments pertaining to Greece default and news flows from the US economy indicating the risk of recession or recovery thereof is going to influence the future trend of the market. On downside, 4,800 is a key trend decider level for the market. Below 4,800 levels, panic selling is likely to lead to further downfall till 4,700 levels”.
GEPL CAPITAL: “ Pattern ‘Island Reversal’ is seen on daily chart of Nifty in the zone of 4906 - 4879 and likely to decide the immediate trend as it is considered as a bearish pattern. The support trend line connecting the earlier lows of 4759 and 4720 is showing the level of 4770 which is a breakdown level for Nifty. The convincing breakdown below 4770 after “Island Reversal” Pattern is likely to trigger a sharp downward momentum surpassing 4700 mark. At the same time closing above 4920 will negate the bearish impact of “Island Reversal” Pattern and upward bounce may be seen”.
PINC RESEARCH: “The Nifty’s decline below 4,900 today has confirmed that the short-term rally from around 4,750 to 5,025 that we saw last week was only a pull back to a larger downtrend. The Nifty has been consistently exhibiting lower top-bottom indicating that the trend of the index is down. The power of the bears can be gauged from the fact that today’s morning gap down remained unfilled during the course of the trading session. If this gap remains unfilled for the next few days, it could mean that the trend could deteriorate further. The technical indicators in the medium term and short term are clearly pointing southwards. Any further declines could have the backing of these technical indicators. The target on the downside now stands at 4,700 and any break below that can take the Nifty towards the level of 4,500. The Mid-cap index today breached the level of 7,000. Continuing to stay below 7,000 can result in another round of declines for this index. The target on the downside in this case could be 6,500 or lower”.
GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): “The market has opened with a bear gap and has closed in the red. Technically all is not well as yet and upside to 4950 is possible but that is a strong resistance to deal with. The support for the Nifty is at 4800-4720 and resistance at 4950-5037”.
ANGEL BROKING (Technical): “Indices opened significantly lower and traded in a narrow range of 16255 to 16056/4879 to 4823. We observed that indices were consistently facing strong selling pressure near the high it registered in the morning. Hence, going forward, yesterday’s downside gap of 16404 to 16256/4924 to 4879 may act as a strong resistance in coming trading sessions. Looking at the global clues, it is likely that our markets may open with a negative bias. On the downside, yesterday’s low of 16056/4823 may provide support in coming session. Any violation of this level, indices are likely to drift towards 15756/4720 level”.
ANGEL BROKING (Daily Outlook): “The trend deciding level for the day is 16,155/4,851 levels. If nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16,253–16,354/4,878–4,906 levels. However, if nifty trades below 16,155/4,851 levels for the first half-an-hour of trade then it may correct up to 16,053–15,955/4,823–4,796 levels”.
HEM SECURITIES: “Indian equity benchmarks fell nearly 2% on the first session of October on renewed fears of Greece default as its government stated it would miss deficit targets for 2011 and 2012. For tomorrow, markets are expected to be sideways”.
INDIRATRADE SECURITIES: “It was a significant decline in the markets on Monday with all sectoral indices closing in the red. Pressures primarily came from realty, metal and banking and IT, too, closed with substantial loss. Auto and oil & gas were the only two sectors that saw moderate declines. For today’s trade, market likely to trade in the range between 4860 & 4895 in the upper side and 4810 & 4770 in the lower side”.
JRG EQUITY RESEARCH (IndiTrade): “The NSE Nifty will try to take support at 4818 in the morning session. And if market fails to hold this support, further selling pressure may drag Nifty towards lower levels. The Major support for the day is at 4778. The overall market sentiment will remain under pressure as long as Nifty trades below the critical support at 4876. Any up move above this level, Nifty may face selling pressure at 4905”.
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