The Nifty peaked to 52 week high Monday to 5329 and yesterday corrected 40 points closing at 5262.45. The European rescue plan for Greece which issued seven year bond on a higher market rate was one of the major reasons for the yesterday’s gains around the markets including Asia. However today’s drop in NSE Nifty was due to the profit booking in technology, pharma, telecom, banking & financial, auto counters.
HCL Tech, HDFC Bank lost more than 3% yesterday, Ambuja Cement, Sun Pharma, Garsim, and Hero Honda lost more than 2% from Mondays close. On the other hand there was major buying happening DLF and TATA motors which was up 3.23% and 2.23% respectively. IT stocks continued to struggle, IT companies which is major contributor to India50 index lost nearly 2.53%. The appreciation of rupee which is at a 19 months low at 45 against the US Dollar was also building pressure on IT companies. Though the nifty closed in red losing 0.76% from Mondays close, Asian indices were in the green zone. Shanghai composite gained 0.65% closing at 21,374.79 and Nikkei gained 1.01% closing at 11,097.14.
Thought the psychological level of 5300 has been broken and closed below for the day; the bullish outlook of the India Inc could hit the peak of 5350 in near term. With earning season in coming weeks, the nifty is at very crucial level facing resistance at 5350 in the near term and support at 5183. The support level could be a crucial level to watch as it has seen an upside twice from these levels. This NSE nifty futures expiry can bring some more correction happening for the week. IT could be sectors to watch for which can affect the Nifty in near term.
Mohammed Rabbani
No comments:
Post a Comment