Nifty slips below 3850

CNBC-TV18’s Managing Editor, Udayan Mukherjee - It’s the familiar story once again. The day started with a dead cat bounce but that got sold off, so Nifty is not holding 3850, this morning we bounced a little bit and went up to the 3900 level but as we speak, we are approaching 3800 with great speed, so 3850 the level which everybody was watching out. That seems to have violated now and we are trading well below that and in fact a full 1.5% below that at 3802.

Now in danger of getting into the 3700 and the Sensex too has collapsed from this mornings’ high to about 12,500 level, so this has not been a good day at all. And as the day has progressed, there has been just more and more weakness which has come in, and of course a few stocks like Ranbaxy has held out and that’s up a 11%. Some of oil marketing companies haven’t done too badly. The odd Bharti and ITC have seen some buying. But to counter that, a complete collapse in real estate stocks once again led by Unitech and DLF, some dents opening up in autos and big stocks like Reliance and SBI.

RPL and TCS are looking nervous before its earnings and Cairn hasn’t had a good day either. Even on the midcap side maybe a few sugar stocks hold out and a few of the new listings. But otherwise it’s been quite depressing to see the way some of the infrastructure, fertilizer stocks and individual stocks had blow up today like S Kumar’s, Asian Electronics, Gujarat NRE Coke and some real estate stocks. It’s been so distressing to see the way how the markets have panned out after an initial attempt at a dead cat bounce.