The markets lost considerably yesterday with all sectoral indices closing deeply in the red. Metal, auto, consumer durables and capital goods were the worst performers; in addition, IT, power and banking, too, took a severe beating.
In the afternoon, European markets opened in the red while Asia closed up with big cuts. Weakness in the rupee created mayhem in the Indian market and the Sensex breached the crucial 16000 mark.
The market breadth was negative with advances at 367 against declines of 1056 on the NSE. The top Nifty gainers were BPCL, Powergrid, Cairn India and Bajaj Auto while the biggest losers included Tata Motors, Tata Steel, Sail and Reliance Infra.
On the positive side, the fall in crude oil and gold augurs well for the Indian economy. Because, decline in crude oil prices will help in covering the fiscal deficit. However, the decline of rupee is a cause for worry.
Technical Analysis: The markets closed with significant losses with all sectoral indices closing in the negative. The Sensex closed at 16030, down 298 points from its previous close, and the Nifty closed at 4858, down 84 points. On the higher side 4900 will be the strong support level while on the lower side 4800 will be the strong support level.
Suggested Strategy: The market trend is downward and hence upward correction may be used to sell into the market.
No comments:
Post a Comment