Nifty near 100 days moving average - Consortium

Sensex declined by 317 points (1.6%) to close at 19325 - one of the biggest single day loss in the last six months. There was all round selling in the market due to negative global cues. Asian markets nosedived 1-3% (China plunged 3%) after minutes from the U.S. Federal Reserve suggested the central bank may slow or stop buying assets sooner than expected and China ordered increased property curbs. European market fell by 1-2% after Germany PMI data came in lower than expectation. In India, higher subsidy burden, inflation and disappointed corporate results coupled with negative global mood turned sentiments negative in the market. Commodity price witnessed sharp declines with gold below 30k; Brent crude and base metals also lost some ground.

Shares of Shriram Transport Finance witnessing selling pressure (down 7.5%) as US private equity firm TPG Capital, which owns about 20% in the company, was selling part of its stake at discount to market price.Metal stocks witnessed biggest losers today (Index down 3.2%). Hindalco declined by 3.3% to close at Rs107.8. Others like Sterlite, JSW Steel, Sterlite and Jindal Steel declined by 3-5% each. Banking stocks witnessed sharp declined (Index down 2.5%). ICICI Bank slipped by 4% to close at Rs1080. Others like SBI, Union Bank, PNB, Bank of Baroda, Union Bank, Yes Bank declined 3-4% each. Realty stocks sharp declined (Index down 2.3%).

DLF declined by 2.5% to close at Rs272 after touching day's high of Rs279. Others like India Bull Real (down 6%), Prestige and HDIL declined by 2%. The Nifty cracked in a wave of relentless selling inspired by weak global cues.

For the day coming by, Global cues are mixed and nervous. FIIs cash buying was however very encouraging but their selling in Futures segment is a cause of concern. Nifty, yesterday, opening with a huge 34 point downward gap at 5909, the Nifty edged up to 5921 and then fell sharply to all round selling to touch a low of 5844, ending near its low at 5852, down 91 points. The selling was intensive as is evidenced by the fall of 48 of the Nifty stocks barring two exceptions Cipla and Sun Pharma which closed nominally up.

The Nifty has come down to 5844, a bit above the 100 days SMA standing at 5840, which is generally not broken at the first attempt. Hence, buying should be done above 5850 and selling below 5830. Supports are at 5830, 5810 and 5780. Resistances are at 5880 and 5905. We see Nifty to be volatile and may move in both sides.

Source : Equity Bulls

Keywords