The Nifty extended intraday losses, breached 200-DMA support and fell below 5,800 on Tuesday as institutional investors booked profits on the back of depreciating rupee and weak global cues. There are also concerns whether the Reserve Bank of India will cut interest rates when it meets next week. According to analysts, the market momentum is on the downside and more sharp correction with intermediate upmoves are not ruled out. "The rupee was threatening to go down earlier when Nifty was around 6,150-6,200 and when it started correcting, there was withdrawal of funds first from the fixed-income market and now in last few trading sessions, we are also seeing the pace of infusion of funds by the FIIs also slowed down. In fact, yesterday, inflows were negative," said Deven Choksey, MD, KR Choksey Securities. Real time intraday Technical Analysis Software Charting Software
"We are going to
see the eventual downturn in the market. Probably one would not see a straight
fall but one might probably see some corrective upsides also during this
particular fall but market. The Nifty might trend downwards to around 5,750 and
if it is taken out, then we might see it correct to 5,500 levels," Choksey
added. The rupee has been under pressure
on the back of demand for the US dollar on expectations of improving US economy
and tapering of QE program. The
partially convertible rupee was trading at all-time low of 58.94 down 79 paise
per dollar. It had closed at 58.14, an all-time closing low against the dollar
on Monday. At 12:00 p.m.; the 50-share
index was at 5,785.35, down 92.65 points or 1.58 per cent. It touched a high of
5,868.05 and a low of 5,782.90 in trade today. The Sensex was at 19,130.77, down 310.30
points or 1.60 per cent. It touched a high of 19,418.74 and a low of 19,121.18
in trade today. The S&P BSE Midcap
Index fell 1.90 per cent and the S&P BSE Smallcap Index was 1.98 per cent
lower. The S&P BSE Metal Index fell
4.81 per cent, the S&P BSE Realty Index was 4.11 per cent lower, the
S&P BSE Power Index was down 2.27 per cent and the S&P BSE Bankex
declined 2.08 per cent.
Jindal Steel BSE -15.18 % (18.52 per cent), Hindalco (5.47
per cent), DLF (5.26 per cent), Tata Power BSE -5.87 % (4.56 per cent) and Tata
Steel BSE -3.06 % (4.25 per cent) were among the top Nifty losers. HCL Tech (1.30 per cent), GAIL (0.71 per
cent), Cipla (0.59 per cent), Kotak Bank (0.58 per cent) and Hero MotoCorp BSE
-0.18 % (0.54 per cent) were among the top gainers. The market breadth was negative on the NSE
with 187 gainers against 1,082 losers. Foreign institutional investors sold shares
worth Rs 114 crore and domestic institutional investors sold equities worth Rs
69.75 crore on Monday as per the provisional data from the National StockExchange.
Source : Economic Times
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