7:08 pm
Jack
MUMBAI: Benchmarks ended three-day rally and closed in the negative territory as traders unwounded long positions near crucial resistance levels following weakness in global markets. The US president Barrack Obama's plans to create more jobs by giving $ 447 billion stimulus failed to lift sentiments.
According to analysts, the market had rallied in the past few sessions and a correction was expected. Investors will now look out for IIP data and Reserve Bank of India's policy meet next week for further direction. The market is expected to consolidate in a range for next few sessions and may witness some volatility in rate sensitive sectors.
The correction was led by profit booking in index heavyweight Reliance Industries. The stock had moved up in last session after the CAG report was tabled in the parliament. According to experts, the stock is a good buy on dips for investors with time horizon of over a period of one year.
National Stock Exchange's Nifty closed at 5059.45, down 93.80 points or 1.82 per cent. The broader index touched intraday low of 5046.80 and high of 5163.75
Bombay Stock Exchange's Sensex ended at 16866.97, down 298.57 points or 1.74 per cent. The 30-share index touched a high of 17211.80 and low of 16830.95 in trade today.
"Market is likely to consolidate in the range of 5200-5000 for at least next two weeks before the next leg of upmove. Nifty has been facing stiff resistance 40eDMA at 5175 and needs to break that," said, Somil Mehta, Technical Analyst, Sharekhan.
BSE Midcap Index was down 0.84 per cent and BSE Smallcap Index declined 0.75 per cent.
Amongst the sectoral indices, BSE Metal Index fell 3.16 per cent, BSE Bankex was down 2.35 per cent and BSE Oil&gas Index was down 2.30 per cent.
"We are bullish on auto and metals especially Tata Motors and SAIL. In realty, DLF looks good," Mehta added.
Sterlite Industries (-5.49%) Hindalco Industries (-5.47%), Jaiprakash Associates (-4.58%), SBI (-3.68%), and Reliance Industries (-3.33%) were the major Sensex losers.
Hindustan Unilever (2.52%), HeroMotoCorp (2.05%), ONGC (0.34%), Bharti Airtel (0.29%) and HDFC (0.23%) were the major gainers.
Shares of GTL surged higher as the company announced that bankers have approved debt restructuring. Debt recast could pave way for sale of tower business.
Market breadth was negative on the BSE with 1663 losers against 1203 gainers.
