Nifty, Sensex may attempt to rally by early next week: Friday Closing Report

Moneylife Digital Team 15 February 2013

As suggested yesterday, the Nifty almost hit 5,850 today (actual low was 5,854). If today’s low holds, the index will try to make a move towards 5,950. If not, the Nifty may hit 5,825

The market settled in the red for the second day on weak corporate earnings and unsupportive global cues. As suggested yesterday, the Nifty almost hit 5,850 today (actual low was 5,854). If today’s low holds, the index will try to make a move towards 5,950. If not, the Nifty may hit 5,825. The National Stock Exchange (NSE) reported a volume of 64.78 crore shares and advance-decline ratio of 611:897.

The domestic market opened lower on unimpressive third quarter results from corporates and weak global cues. Dismal results from Tata Motors, Suzlon, State Bank of India, among others and Asian markets trading lower in morning trade hurt investor sentiment as the market opened.

The Nifty started off 27 points lower at 5,870 and the Sensex resumed trade 47 points down at 19,450. The benchmarks drifted lower in subsequent trade on all-round selling pressure. Except the BSE FMCG index, all other sectoral indices wee in the negative.

The Supreme Court’s order asking telecom firms whose licences were cancelled and did not participate in fresh auction for 2G spectrum to cease to operate immediately, dented the market.

The benchmarks continued their descent in the second half of the trading session even as the European markets opened with mild gains. The sustained selling led the market to its low at around 2.00pm with the Nifty falling to 5,854 and the Sensex dropping to 19,382.

However, bargain buying in auto and fast moving consumer goods sectors helped the benchmarks in making a recovery from their lows. The gains led the indices to their highs. The Nifty touched 5,900 and the Sensex rose to 19,513 at their respective highs.

Seizing the opportunity, sellers once again pressurised the market, resulting a negative close for the second day. The Nifty shed 10 points (0.16%) to 5,887 and the Sensex fell 29 points (0.15%) to settle at 19,468.

Markets in Asia settled mixed ahead of the outcome of the G-20 meeting in Moscow on dealing with the sliding yen. Japan is in focus after the yen dived about 12% in the past three months on speculation that new prime minister Shinzo Abe will continue with a more aggressive monetary policy.

The Hang Seng rose 0.13%; the Jakarta Composite gained 0.46% and the Seoul Composite added 0.08%. Among the losers, the KLSE Composite fell 0.18%; the Nikkei 225 tanked 1.18% and the Straits Times declined 0.22%.

At the time of writing, the key European indices were mixed with a negative bias and the US stock futures were trading lower.

Back home, foreign institutional investors were net buyers of shares totalling Rs321.26 crore on Thursday while domestic institutional investors were net sellers of equities amounting to Rs248.99 crore.

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