Posted By : Kishore B.S
Hi Friends !!!
The Markets opened with Negative bias continuing the downtrend set forth yesterday and remained range bound largely during the first half of the session hovering in the range of 20-30 points on either side of Yesterday closing levels.
The later half of the session saw the fall of the Index to further down upto the 4960 levels which was the support levels, the negative news emanating from the Euro markets coupled with negative momentum in the Dow futures sealed the negativity spread in the markets. Though the markets remained largely negative ITC stood out as exception by moving up by nearly 5% on the back of news about cut in Excise Duty which turned the attention of investors and traders.
The depreciation of the Rupee after the pull back yesterday also dampened the sentiments though it helped some of the IT stocks fare better in the negative markets yet they did little to help the drifting Index. The banking stocks and behemoth Reliance also contributed towards the fall today and remains to be watched if the NPA levels of banking sector could improve or deteriorate going forward with the setting in of the Declining Interest rate regime.
As of now the Negative sentiments does not seem to be fading and losing effect where most of the Analysts also are of the opinion that the downtrend could continue further to 4800 levels. Given the current scenario those levels of 4800 might not be immediately reached given the magnitude of the fall this week, and some pull back or slower downward drift cannot be ruled out.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)