The corrective move gathered momentum on further weakness in interest rate sensitive sectors like banks, realty and Autos. Bankex shed more than 2% as banking counters capitulated further. ICICI bank , HDFC bank and SBI continued to slide downwards as did other smaller banking counters. Auto stocks were also under a bearish spell as 2-wheelers led the decline. Bajaj Auto and Hero Honda lost close to 4% each. FMCG turned out to be the best sector for the days as both ITC and HUL managed to close in the green. RIL was up for better part of the day but shed all its gains as higher levels attracted profit taking. Jindal SAW was the biggest gainer amongst the F&O counters as it gained almost 7% on extremely healthy volumes. Some other that bucked the overall negative trend were Mundra, Piramal Health, Jain Irrigations, HCL Tech, Sesa Goa, Gail, Asian Paints and Tata Power. Nifty slipped below 6100 and closed around 6080.
Nifty is likely to find support around 6025-6040 and its highly probable that we might trade between 6000 and 6150 for next 7-10 sessions. Weakness persists in banking and Autos while strength remains in Metal, IT, FMCG and Pharma. Banking has consistently underperformed for past 4-5 weeks now and some more downside cannot be ruled out completely. BankNifty that is trading around 11300 has short term support around 10800-10900., while stiff resistance is likely around 11600. Autos are also looking weak and in fact technical patterns of Auto majors is a bigger worry than banking counters. Bajaj Auto, Maruti, Ashok Leyland and even Tata Motors are looking weak. On the other hand, IT heavyweights continue to look good and more upside is likely in TCS, Wipro and HCL Tech. Some correction was seen in Tata Steel but it remains in an uptrend and stock could rebound from around current levels. HUL is sustaining above 320 and could target Rs 345-350 over next 2-3 weeks.
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