Market tanks on weak global cues; Sensex below 36,000 levels, Nifty below 10,800 mark
For the coming week, 10690 remain a trend deciding level for the markets. On the upside, bulls would be in safe heaven only above the 11000 mark.
On account of heavy selling pressure in banking, infra, auto and power sectoral stocks, the BSE Sensex tanked 383 points from its Friday close to 35,636 after making a high of 36,124 mark. The 50-share index Nifty gained 122 points to 10,658 levels. Shares of Dish TV, DLF and Cera Sanitaryware were the top gaining stocks while Linde India, Gra[phite India and Edelweiss Fin shares were the top losers.
Speaking on the market trend Mehul Kothari, Senior Equity Analyst at IndiaNivesh told, "On the downside, move below 10750 could dwell the upside momentum but the uptrend would be in jeopardy if index breaches the critical support of 10690. Thus for the coming week, 10690 remain a trend deciding level for the markets. On the upside, bulls would be in safe heaven only above the 11000 mark. Before that 10900 – 10930 zone might act as intermediate resistance in the coming sessions. Traders are advised to remain stock specific due to earning season and avoid over leveraged positions."
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Auto major Appolo tyres share went down by around 1 per cent, shares of Bajaj Auto slipped by around 1.65 per cent, hero MotoCorp went southward by around 0.9 per cent while Exide industries shares crashed by more than 2 per cent in early session of Monday trade. In banking sector shares of ICICI Bank went down by around 1.25 per cent while IndusInd Bank and Yes Bank went down by around 0.8 per cent. In telecom sector shares of Bharti Airtel went down by near 1 per cent while GTL Infra crashed by more than 4 per cent. Power major Reliance Industries went down by half a per cent while shares of Power Grid, Siemens, NTPC, JSW Energy all turned red by more than 1 per cent today.
Giving cue about some stok behaviour in coming trade ssessions Abhishek Karande, Senior Research Analysit at IndiaNivesh told, "Maruti as stock could possibly witness extended correction. Similarly Escorts could witness a fresh correction from the current levels of 702 until 640." He said that cement sector which posted a similar rebound like Nifty Index is now poised for correction. Fresh correction is now visible in Ramco Cement. At cmp of 578 stock could possibly edge lower until 500 mark. Grasim could continue its lower oscillation until 700 mark.
"Pharma stocks, mainly Ajanta Pharma is poised for a fresh correction. at the current levels of 1127, stock prices could witness lower moves until 1000. However stock price have potential to edge lower below 1000 mark. Stocks that could be consider to invest for the current year are United Breweries, Infosys, Axis Bank and Wipro as trend on higher time frame of these stock are bullish," said Abhishek Karande of IndiaNivesh.
Among major Asian indices Korea's Kospi edged around 0.13 per cent higher, Hang Seng went up by around 0.34 per cent, Shanghai index went 0.37 per cent higher while the Japanese Nikkei went down by around 0.4 per cent.
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