GOOD MORNING!!!
DALAL STREET WAS MORE OF A HALAL STREET IN THE TRADE WHERE NO TRADER HAS ANY CLUE OF WHAT IS HAPPENING MARKETS STOCKS WERE BATTERED TO DEATH ADAG STOCKS WERE THE BIGGEST CULPRITS ON TRADE. BEARS WERE COMPLETELY ON TOP OF THE WORLD FOR THE LAST FEW SESSIONS WHO MADE A GRAND PARTY ON THE LAST DAY. MARKETS BEGAN THE DAY ON A QUIET NOTE TRACKING WEAK ASIAN COUNTERPARTS WHICH OVERLOOKED THE OVERNIGHT STRENGTH ON THE WALL STREET THAT EXTENDED ITS WINNING STREAK FOR THE SEVENTH STRAIGHT DAY AS STRONG EARNINGS REPORT UNDERPINNED SENTIMENTS. HOWEVER AFTER THE NEGATIVE OPENING, MARKETS CLIMBED INTO THE GREEN DURING MORNING TRADES AS BUYING GATHERED SOME MOMENTUM WHICH SHORT LIVED THOUGH FRONTLINE INDICES GYRATED AROUND THE NEUTRAL LINE FOR MOST PART OF THE DAY BUT THE LATE SELL-OFF IN THE ADAG PACK SPOOKED SENTIMENTS WHICH LED TO INTENSE POSITION SQUARING. SELL OFF IN THE INDICES STARTED SOON AFTER ANIL AMBANI REPORTEDLY MET TELECOM MINISTER KAPIL SIBAL IN BACKDROP OF LINGERING 2G INVESTIGATION AND REPORTS THAT ICAI HAS ASKED RELIANCE INFRA ABOUT SOME AUDIT MALPRACTICES ALSO LED TO HEAVY DECLINE IN THE STOCK PRICES OF THE COMPANIES OF ADAG GROUP. OTHER DRAGGER IN THE MARKETS IS THE NEWS THAT TRAI THE INDIAN TELECOM REGULATOR HAS RECOMMENDED A SHARP HIKE OF PAN INDIA LICENSE WITH 6.2 MHZ SPECTRUM, A PROPOSAL THAT WEIGHED ON ALL THE TELECOM SHARES ALONG WITH THE FEARS THAT THE RBI MAY GO FOR FURTHER TIGHTENING TO TAME INFLATION REMAINED ANOTHER REASON BEHIND THE ONSLAUGHT ACROSS THE BOARD IN THE LOCAL MARKETS. THE BREADTH OF THE MARKET WAS DREADFULLY NEGATIVE. WITH THE TREMENDOUS SELLING PRESSURE MIDCAP AND SMALLCAP INDICES FELL SHARPLY BY 3.64% AND 4.30% RESPECTIVELY. THE POWER COUNTER SHAVED OF 4.23% WITH MAJORS LIKE RELIANCE INFRA SINKING 18.79% FOLLOWED BY LANCO INFRA THAT PLUNGED 14.42%. THE METALS PACK TOO WITNESSED RUTHLESS POSITION SQUARING AS IT PLUMMETED 3.87% AS MAJOR LIKE HINDALCO AND SESA GOA SHRINKING 6.17% AND 6.46% RESPECTIVELY. INFRASTRUCTURE MAJOR JAIPRAKASH ASSOCIATES WILTED OVER 10% IN THE DAY’S TRADE BEING THE THIRD TOP LOSER AFTER R INFRA AND R COM WHICH SHAVED OFF 18.79% AND 14.32% RESPECTIVELY. WHILE THERE WERE ONLY A HANDFUL OF STOCKS ON THE GAINERS CHART INCLUDING HEAVYWEIGHT LIKE M&M, HDFC AND DLF.
TODAY MARKETS WOULD OPEN WEAK ON WEAK GLOBAL CUES AND AND WEAK ASIAN COUNTER PARTS. WITH THE MIXED TREND IN US STOCKS AND ASIAN STOCKS WE MAY CONTINUE TO FEEL THE PRESSURE OF WEAKNESS IN THE MARKETS TODAY IF NIFTY TRADES BELOW 5250 THEN LIKELY TO COME DOWN TO 5222 AND BREAK BELOW THIS LEVELS WOULD TAKE NIFTY DOWN TO 5186 LEVELS AND THEN TO 5150 LEVELS AS LONG AS NIFTY HOLDS 5200 LEVELS WE MAY EXPECT SOME BOUNCE BACK IN THE MARKETS BUT ONCE IT BREACHES THIS LEVEL THERE IS EVERY POSSIBILITY THAT WE MAY HEAD DOWN FURTHER. ON THE POSITIVE SIDE IF NIFTY TRADES ABOVE 5270 LEVELS THEN LIKELY TO MOVE UP TO 5300 LEVELS AND BREAK ABOVE THIS WOULD TAKE NIFTY TO 5345 LEVELS. IF NIFTY TRADES ABOVE YESTERDAYS LOW FOR ANOTHER COUPLE OF DAYS WE MAY SEE A BOUNCE BACK TO 5450 LEVELS AND THEN TO 5550 LEVELS. ON A BROAD SENSE AS LONG AS NIFTY TRADES BELOW 5400 LEVELS ONE IS ADVISED TO BE SHORT IN THE MARKETS.
SCAMS AND RUMOURS HAVE BECOME THE KEY PLAYERS IN THE MARKETS.
