Volumes extremely low in mkts; disastrous listing for KSK

CNBC-TV18’s Managing Editor, Udayan Mukherjee - It’s been better than what the morning was like but now we are slipping a bit again. So above 4,100 on the Nifty that resistance is kicking in once again so not quite out of the woods. It’s been encouraging today that the market has not collapsed below 4,000 Nifty since morning. It’s been a show of some resilience and then the market is inched up in the afternoon on the back of some heavyweights like ONGC and some very good participation from the entire metal space and the power space.

But even so it’s probably a couple of heavyweights stocks which are swinging the Nifty because volumes are extremely low today at this point only about Rs 40,000 crore with one hour to go does not look good. So one is not getting that sense of conviction on the upmove though it’s been reluctant to go down as well and the breadth is the other point which is not great today; 520 advances to 680 declines given that the Nifty is been edging up through the days not a great place to be. So the breadth is not great; the volumes are not great at all and it’s probably a narrow set of stocks lead by ONGC and a few metal stocks, Reliance too hasn’t been too bad which has kept the market up.

On the midcap side of the market today’s listing has not been good at all, KSK Energy Ventures now trading below Rs 180, the issue was at Rs 240. So it has been a disastrous listing for KSK and even the other midcaps with the exception of a few infrastructure stocks and few new listing things have not been exactly gung-ho. So not as bad as the morning but still not convincing, it looks like a weak attempted a pullback to get back to 4,100 levels from which once again supply is coming in from the Futures & Options market.