Markets witness a sell off from the highs of the day;

06 Aug 2008 | 18:46



Markets
witness a sell off from the highs of the day; close with modest gains
The Markets opened significantly higher on Wednesday on the back of
positive global cues after the Fed held key interest rates at 2%.



Markets
witness a sell off from the highs of the day; close with modest gains
The Markets opened significantly higher on Wednesday on the back of
positive global cues after the Fed held key interest rates at 2%. A
further slump in crude oil prices also boosted the sentiment. However,
the markets witnessed resistance at higher levels and selling pressure
pulled the indices down to close with modest gains.

While the
Sensex closed up 112.47 points or 0.75% at 15,073.54, the Nifty gained
14.7 points or 0.33% at 4517.55. The broad market indices ended on a
mixed note. While the BSE Midcap gained 0.2%, the BSE Smallcap index
ended 0.68% lower. The market breath was marginally negative as A/D
ratio was about 0.9:1 on the BSE. Turnover on the NSE was Rs.18,615.5
cr Vs.
Rs.17,293.1 cr on Tuesday.

Sectorally, it was a mixed
bag. The BSE Auto, Capital Goods and IT indices gained more than 1%
each. The BSE PSU and Metal indices lost 1.23% and 3% respectively.
Gainers from the BSE-30 were Maruti Suzuki, Tata Motors, Bharti Airtel,
ACC and TCS. The losers from the Sensex pack included Tata Steel, Tata
Power, SBI, Rel Infra and HDFC.

With the markets reacting from
strong resistance levels, it seems that the markets are going to find
it difficult to move up in the coming sessions.
The technical trend
nevertheless remains up and we recommend holding on to existing
positions with trailing stops to protect profits already earned.
Fresh positions need to be entered into on a selective basis, preferably on declines.