Nifty continued to drift lower ahead of expiry of Feb series of derivatives. The sector that had led the rebound, the banking sector was the one responsible for dragging the indices lower. SBI was the main culprit as it dropped sharply by around 4%. Other banking heavyweights too did not fare any better as both HDFC Bank and ICICI appeared prominently on the list of losers’. Ranbaxy that came out with disappointing set of numbers yesterday fell to almost six month low, losing over 6% on huge volumes. Some of the key stocks amongst the day’s losers were Aurobindo, PTC, Punj Lloyd, Jain irrigation, Ashok Leyland, United Phosphorous, DLF, TVS Motors, Jet Airways and Mphasis. Reliance Infra managed to recover some lost ground on account of short covering as the stock moved up by more than 12%. Another forgotten heavyweight to see sharp recovery was Hero Honda. Some others to gain on a lackluster day were Hexaware, ABB, Pantaloon, Indian Info, Reliance Cap, BOI and Dr Reddy. But, overall, it was yet another disappointing day for the markets.
Nifty traded in the red for most part of the session as some of the key heavyweights came under a lot of selling pressure. But, technically, things stand as they were yesterday as we are still above the crucial levels of 5375-5400. As of now it looks likely that expiry could happen around 5450 only. Beyond tomorrow, we believe that it would be better to wait till Budget announcements to take a confident call on markets as well as stocks. We could see some recovery if the aforementioned support holds on expiry day and we might enter the Budget day around 5525-5550.
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