Nifty is oversold and will rally next week once it closes above 5,690

The market settled in the red on global concerns and domestic political worries, making it the sixth consecutive closing in the negative and the lowest closing since 26 November 2012.
 

The Nifty is oversold and will rally next week once it closes above 5,690. The National Stock Exchange (NSE) witnessed a turnover of 68.91 crore shares and advance-decline ratio of 488:1019.

The market opened flat on political worries after India supported a US-sponsored resolution seeking a probe into human rights violations in Sri Lanka and on unsupportive global cues. Markets in Asia were mostly lower on concerns from Cyprus while US markets settled down overnight as software services major Oracle’s revenues were below expectations.

The Nifty opened one point up at 5,660 and the Sensex resumed trade at 18,785, eight points down from its previous close. Select buying in initial trade pushed the indices hither in initial trade. However, intense volatility saw the benchmarks fluctuating between the red and green a couple of times.

Selling in consumer durables, realty, PSU and IT stocks led the market into the red in mid-morning trade. The volatile market continued to tread southwards in subsequent trade. A weak recovery attempt was made around noon, but sellers overpowered the buyers and sent the indices further down.

The market fell to its low around 1.30pm as selling expanded. At this point, the Nifty slipped to 5,632 and the Sensex declined to 18,669. However, value picking at the lows saw a smart recovery which helped the indices to emerge into the positive.

Gains in power, auto, capital goods and banking stocks led the benchmarks to their highs in the last hour of trade. The Nifty rose to 5,691 and the Sensex climbed to 18,860 at their respective highs.

However, the gains were short-lived as the indices went on a downtrend once again which resulted in the market closing in the red for the sixth day in a row.

The Nifty settled seven points (0.13%) lower at5,651 and the Sensex fell 57 points (0.30%) to finish at 18,736.

Among the broader indices, the BSE Mid-cap index fell 0.26% while the BSE Small-cap index dropped 0.96%.

The sectoral gainers were BSE Power (up 0.27%); BSE Metal (up 0.15%) and BSE Capital Goods (up 0.12%). The top losers were BSE Consumer Durables (down 2.06%); BSE Realty (down 1.31%); BSE IT (down 0.82%); BSE TECk (down 0.70%) and BSE Healthcare (down 0.54%).

Twelve of the 30 stocks on the Sensex closed in the positive. The main gainers were Bajaj Auto (up 3.85%); Jindal Steel & Power (up 3.11%); Hindalco Industries (up 1.64%); Hero MotoCorp (up 1.52%) and Tata Power (up 1.43%). The chief losers were State Bank of India (down 1.71%); Tata Steel (down 1.68%); Sun Pharmaceutical Industries (down 1.42%); Bharti Airtel (down 1.28%) and TCS (down 1.27%).

The top two A Group gainers on the BSE were—IDFC (up 4.83%) and Dish TV India (up 4.67%).

The top two A Group losers on the BSE were—NHPC (down 6.44%) and AstraZeneca Pharma India (down 5.07%).

The top two B Group gainers on the BSE were—Tera Software (up 18.95%) and Oswal Spinning & Weaving Mills (up 18.63%).

The top two B Group losers on the BSE were—Warren Tea (down 19.99%) and MVL Industries (down 19.35%).

Of the 50 stocks on the Nifty, 25 ended in the green. The key gainers were IDFC (up 6.19%); Ambuja Cement Company (up 4.20%); Bajaj Auto (up 3.97%); Bank of Baroda (up 3.70%) and JSPL (up 3.34%). The major losers on the index were DLF (down 3.17%); Ranbaxy Laboratories (down 1.9%); SBI (down 1.86%); Tata Steel (down 1.78%) and TCS (down 1.66%).

Markets in Asia ended lower on concerns of a collapse of the Cypriot banking system as the debt-ridden nation failed to secure from Russia. On the other hand, better-than-expected flash PMI data saw the Chinese market settling firm.

The Hang Seng declined 0.50%; the Jakarta Composite tanked 1.66%; the KLSE Composite fell 0.24%; the Nikkei 225 tumbled 2.35%; the Straits Times dropped 0.28%; the Seoul Composite shed 0.11% and the Taiwan Weighted lost 0.20%. Bucking the trend, the Shanghai Composite rose 0.175.

At the time of writing, the CAC 40 of France was down 0.57%; DAX of Germany declined 0.29% and UK’s FTSE 100 slipped 0.05%. At the same time, US stock futures were trading with marginal gains.

Back home, foreign institutional investors were net buyers of shares amounting to Rs368.31 crore on Thursday while domestic institutional investors were net sellers of equities totalling Rs30.08 crore.

Pharma major Aurobindo Pharma has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Valsartan and Hydrochlorothiazide tablets. The tablets are generic equivalent to Novartis Pharmaceuticals Corp’s Diovan HCT tablets and are indicated for the treatment of hypertension to lower blood pressure and falls under the cardiovascular (CVS) therapeutic category. The stock settled 4.26% down at Rs139.25 on the NSE.