Nifty consolidating at current levels - Alex Mathews

The markets had opened on a flat note tracking global markets and moved down making lower tops and touched the lowest point by noon. Later in the second part of the day, we saw smart recovery in the markets which took the markets back to green for a short while and in the later part of the day, all the gains were reversed and markets finally came to a close for the day in red at the lowest point of the day.

Today metal stocks dipped as the metal prices on LME were down. Also the auto as well as the banking sector stocks was showing some mixed trend. Auto major Tata Motors was down near to 3% as Daimler AG sold its 5.34% stake in Tata Motors at a discounted price. The markets got some support from the buying interest seen in the IT and Technology segment.

In the European front the markets reversed its earlier gains and dipped into red but Asian markets remained strong. The investors in the European front remained cautious ahead of the meeting of Greek Prime Minister with US President and the Treasury Secretary later today. Also the Portugal government launched its own budget cuts to make up its public finances.

In the second part of the day, US index futures too were trading in red and finally our markets came to a close with Sensex down 0.29% and Nifty down 0.44%.

On the stock specific front, Morarjee Textiles Ltd, HOPFL, Hanung Toys, Raj TV etc made gains while Mahindra Forgings had great fall today and was down around 20% at one point in time. Other losers' were Digjam, TTL, storeone etc.

As expected, the markets have started to consolidate. Yesterday the Nifty five day RSI was around 88 and this correction may continue for a few more days.

Source : Equity Bulls

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