Weakness continues

23 Jan 2009 | 18:32
Weakness continues

Markets remained under pressure through out the day, after some initial choppiness. Dismal global cues put more pressure on the markets in the second half of session. United Kingdom (UK) Q4 GDP declined 1.4% on quarter-on-quarter basis and government declared economy is in recession for the first time since 1991.

While the Sensex closed 139.49pts or 1.58% lower at 8,674.35, the Nifty lost 35.25pts or 1.3% to close at 2678.55. The broad market indices performed in line with the main indices as the BSE Midcap and Small Cap indices were down by 1.56% and 1.5% respectively. Market breadth was negative as almost two stocks declined for every one stock that advanced. NSE cash turnover was lower at Rs.8,459crs. Vs. Rs.8,553crs. on Thursday.

Most of the sectoral indices ended lower. The top losers were the BSE Bankex, Metals, Capital Goods, Realty and IT indices. The BSE Healthcare index was the top gainer with gains of 0.49%. The top gainers from the BSE-30 were Tata motors, Reliance, Ranbaxy and NTPC. The top losers were M&M, Tata Steel, JP Associates, Rcom and SBI.

After flirting with the 2700 levels for two days, the Nifty finally closed below these levels today. This indicates we could see further weakness in the next week though short term upsides cannot be ruled out. We continue with our strategy of using any upsides to build shorts.