Nifty falls below 2800 banks metals down

Equities market were in deep red Tuesday tracking weak Asian markets. With US markets shut, Asia took cues from Europe, where Royal Bank BSE of Scotland nosedived after signaling the biggest loss in UK corporate history. Analysts say that traders should be cautious in keeping long positions and look at shorting opportunities.

“As per overall formation of the market we may say that the market is forming "Rectangle consolidation" between the broader range of 3050/3150 on the higher side and 2500/2550 on the lower side (8400 and 10400 Sensex). Currently the market is placed in the middle of the broader range at 2800/9300 levels and may be that is the reason the market is spending time before reaching to the lower boundary which is at 2500/8400. The most interesting observation is that the market sustained well above the level of 2700/8900 and bears have to do a lot to break the same during the market hours. As the medium term trend is down it may be even difficult task for bulls to hold the market for more time at higher levels,” said Kotak Securities weekly technical report

At 10:30 am, Bombay Stock Exchange’s Sensex was at 9069.79, down 259.78 points or 2.78 per cent. The index touched an intra-day low of 9033.55 and high of 9159.76.

National Stock Exchange’s Nifty was at 2762.80, down 83.40 points or 2.93 per cent. The broader index hit an intra-day low of 2758 and a high of 2842.90.

“In the near term the market may trade between the range of 2920 and 2720 (8900 and 9300 Sensex). Any likely close below 2720 may lead to quick sell off to the levels 2500/2550 levels and in that case long traders should be cautious in keeping long positions. Short term traders may look for shorting opportunity below 2700 levels however; aggressive traders may short sell around 2920 levels in advance with minimal stop loss of nearly 60 points above the entry levels. For investors the advice is to look for investment opportunity in Index heavy weights around 2520 levels with a medium term view in mind and without any fear in the market,” the report added.

BSE Midcap Index was down 1.21 per cent and BSE Smallcap Index declined 0.65 per cent.

All the sectoral indices were in the red. BSE Bankex was down 3.46 per cent, BSE Metal Index fell 3.05 per cent and BSE Oil&gas Index declined 2.73 per cent.

Bharti Airtel (-4.87%), ICICI Bank (-4.83%), Reliance Communications (-4.76%), HDFC (-4.49%) and Sterlite Industries (-3.86%) were the major Sensex losers.

TCS (0.82%) was the only Sensex gainer.

Market breadth was negative on the BSE with 1075 declines and 598 advances.

In Asia, The Nikkei slumped 2.88 per cent, Hang Seng fell 3.33 per cent, Straits Times dropped 2.44 per cent and Kospi fell 2.17 per cent.

http://economictimes.indiatimes.com/Nifty_falls_below_2800_banks_metals_down

Business Financial Services

Nifty falls below 2800 banks metals down