Markets opened on a flat note but then struggled to stay in the positive territory as the global cues turned negative. Shanghai was down around 2% and then European markets opened with more than 1% cut. All this impacted our markets as Nifty slipped below 6000 while Sensex just about managed to stay above 20000. Metals turned negative on Chinese cues and Sail saw the biggest cut. It lost over 4% while Tata Steel, Sterlite and JSW Steel.too ended on a negative note. Sesa Goa , however closed in the green. Banks too were in negative mode and apart from ICICI Bank, most others ended the day in the red. Some of the biggest losers were Patel Engg, Indian Info, SAIL, RMedia, IDEA, RCom, REC, Sterlite, Pantaloon, IBReal and welcorp. Praj was the surprise gainer of the day as it gained a whopping 10% on extremely heavy volumes. Some others on the gainer list were Dish TV, BGR, Bombay Dyeing, B.Chini, Bata, Ambuja and Mphasis.
Nifty closed below 6000 after testing high of 6045. Global cues have turned negative and add to the fact that we have December expiry. It seems that expiry is likely just around 5950-6000. It could be stock specific market for next 3-4 days and its likely that some mid caps could see decent run up. Some short covering is likely in stocks like Bajaj Auto, ITC, ACC, HDFC, HDFC bank and ICICI bank. Praj has seen such huge volumes after a very long time and followup buying over next 1-2 days that takes the stock above 85 could be medium term positive for the stock. Then, one can expect a rise to around Rs 110-115 over next 3-4 weeks. Bombay Dyeing could move to around Rs 530-535 if it remains above 505.
Nifty has support around 5950-60 and then around 5885-5890 while resistance is likely around 6030 and then 6080.
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