Volatility continues

04 Feb 2009 | 18:32
Volatility continues

It was another range bound session for the markets as they were directionless. FII flows were muted in today's trade and they were booking profits along with domestic funds at higher levels.

While the Sensex closed 52.55pts or 0.57% higher at 9,201.85, the Nifty gained 19.15pts or 0.69% to close at 2803.05. The broad market indices however ended lower as the BSE Midcap and Small Cap indices were down by 0.45% and 0.03% respectively. Market breadth was negative as A/D ratio was 0.9:1 on the BSE. NSE cash turnover was lower at Rs.7,899crs. Vs. Rs.9,226 crs. on Tuesday.

Barring the BSE Consumer Durables and Healthcare index, all the sectoral indices ended higher. The top gainers were the BSE Metals, Realty, Oil and Gas and Power indices. The top gainers from the BSE-30 were DLF, Tata Steel, JP Associates, Sterlite and Maruti. The top losers were M&M, Ranbaxy, Hindalco and L&T.

The markets continue to trade in a narrow range. Narrow ranges are usually followed by a big move. One can therefore expect a big move once the Nifty breaks out of the 2750-2850 range. We recommend a cautious approach till there is more clarity on market direction.