Markets correct further; Nifty closes just above 4500 Bears reigned on the markets again as the bulls were not given a single chance in today's session.

20 Jun 2008 | 09:37

Markets correct further; Nifty closes just above 4500 Bears reigned on the markets again as the bulls were not given a single chance in today's session. Markets correct further; Nifty closes just above 4500 Bears reigned on the markets again as the bulls were not given a single chance in today's session. It was the second straight day of selling pressure in the markets. The weakness was due to negative sentiment in US markets, which slipped due to rising crude oil prices and weak earnings from FedEx and Morgan Stanley. Asian markets also ended in negative terrain. Inflation worries also continue to haunt the markets as experts expect Inflation to touch the double digit mark this week itself. Another worrisome subject is Nuke deal. If the UPA government goes ahead with this deal, Left has threatened that they will withdraw support. The Sensex plunged 334.32 points or 2.17% to finish at 15,087.99. The Nifty lingered around its psychological mark of 4500 through the day and managed to close just above that level. It touched an intraday low of 4488.95, before closing the day at 4504.25, down 78.15 points or 1.71%. Broad market indices like the BSE Mid Cap and BSE Small Cap lost 2.04% and 1.48% respectively. Market breadth was weak as Declining stocks outnumbered advancing stocks by a ratio of more than 2:1. NSE cash turnover was Rs.9342.7crs. Vs. Rs.12,534.27 crs. yesterday. All the BSE sectoral indices ended lower. The top losers were BSE Realty, Bankex, Capital Goods and Power. The indices that lost the least were the BSE IT and Metals index. Top gainers from the BSE-30 included M&M, Wipro and Cipla. Losers in the Sensex pack were Ranbaxy, Rel Infra, BHEL, L&T, ICICI Bank and HDFC bank. With the main indices continuing to correct, traders now need to observe if the Nifty can hold the 4500 support levels. A close below these support levels could lead to the Nifty testing the 4400 support levels. On the other hand, if the Nifty finds support and moves up, traders could consider buying selectively in order to participate in the rally.

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