A Listless Day at the Bourses

It was a listless day at the bourses as Nifty failed to follow any direction. It did try twice to claw its way past 5400 but could not manage to do that. Most of the global markets were trading higher but those were largely ignored by our markets as perhaps it was more concerned with the higher crude prices. Some stock specific moves brightened the otherwise dull day. HOEC gained over 9% on very heavy volumes while Ranbaxy lost substantial ground as mylan sued US FDA over lipitor. Some of the significant gainers were Escorts, Opto Circuits, Areva, Lupin, Sun Pharma and GMDC. Losers included PFC, Central Bank, Aban, S.Kumar’s, Tata Communications, Hindalco, Nalco and Jet Airways.

Nifty did not do much but the fact that it failed to move past even 5400 is a cause of concern. On the hourly charts it has given a breakdown by falling and trading below 5420 and sustained trades above 5420-30 only would negate the current bearish short- term structure. On the downside support exists around 5325-30 and then around 5280. Hindalco and HUL have given a breakdown on daily charts by closing below 194 and 270 respectively. Other stocks that look weak are Ambuja Cements, Infosys, Mundra Port, Auto stocks and Jet Airways. Few stocks that are showing resilience and could move higher in even a marginally bullish market are certain banking stocks like Andhra bank, HDFC bank, Indusind bank, Axis Bank, IOB, OBC and others like HDFC, REC, Crompton, Lupin, GMDC and Opto Circuits.

Nifty has immediate support around 5330 and then around 5280 while resistance is seen around 5420-5430.

Nifty Continues The Losing Streak

Last day of January series proved to be yet another bad one for bulls as Nifty lost over 80 points. January series saw Nifty lose around 500 points as the sentiments turned extremely negative in the short term. This has come in a global back drop that remains neutral to bullish. In fact, Dow made almost 30 months high yesterday as it crossed 12000. Even today most of the global markets were trading higher but local markets had no such luck as despite a positive start, Nifty continued to lose ground on long unwinding. Most heavyweights witnessed selling on almost across the board weakness. DLF, JSW Steel, Sterlite, M&M, Ranbaxy, HUL, Bharti, Bhel and ICICI bank were some of the heavyweights that contributed to the falling indices. Some of the other prominent losers were Srei Infra, LITL, Core, Jindal Holding, Indian Info, IDBI, IVRCL, Tata Chem, Lupin, HCC, Century textiles, Bajaj Hind, Pantaloon, Yes Bank and Unitech. Cement heavyweights ACC and Ambuja as well as Tata Motors were some of the heavyweights that bucked the overall trend and finished with decent gains. Few others to post gains were TV18, BRFL, Nalco, Alok, Areva, Sesa Goa and TCS. 

Nifty made a new swing low at 5595 and has maintained the trend of lower lows and lower highs. The momentum remains with the bears as even on the last day of January series market could not attempt even a small technical rebound. More downside is seen in coming days and Nifty might find it difficult to scale 5750-60. Support is seen around 5520-5540 on weekly charts and some technical rebound could materialize from around these levels. Sector- wise it is difficult to point out the stronger ones but it looks probable that banking sector could see buying at lower levels. Some stocks that still qualify as buy on dips are Sesa Goa, SBI, Sterlite, ICICI bank, Alok, Axis, HDFC bank, RIL, Bharti, Cipla, Praj and Petronet LNG. BUY on Dips or on bad days is the key here as it would be imprudent to play trade momentum on the buy side as the momentum remains with the sellers.

Nifty now has immediate support around 5570 and then around 5520-35 while resistance is at 5680 and then 5740-50.