Consolidation, profit booking seen ahead: Experts

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Consolidation, profit booking seen ahead: Experts

Markets remained range bound for most of the session. But with profit booking setting in late trade, the indices slipped deep into the red. Nifty closed at 5,781, down 127 points, while the Sensex shut shop at 19,281, down 353 points.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets BHEL BSE | NSE 25/05/12 Are Mutual Funds betting on BHEL? Other Stocks in this news DLF | Hindalco Industries | Infosys | Maruti Suzuki India | National Aluminium Company | Sterlite Industries (India) | Sun Pharmaceutical Industries | Tata Power Company | Unitech |

Markets remained range bound for most of the session. But with profit booking setting in late trade, the indices slipped deep into the red. Nifty closed at 5,781, down 127 points, while the Sensex shut shop at 19,281, down 353 points.

It was a disappointing close for markets and they ended in red, after a highly volatile session. The midcap and smallcap indices, which were trading with hefty gains in the morning, came off significantly from the day's high. The midcap index ended with moderate losses, but the smallcap index managed to close marginally in green.

All the BSE sector indices closed in red. Heavy selling pressure was seen in capital goods , metal , oil & gas , realty and metal stocks.  

The top laggards on the indices were Maruti Suzuki , BHEL , Infosys , DLF , Hindalco , Unitech , Nalco , Sterlite Industries , Tata Power , Sun Pharma .

Sensex was down 352.56 points or 1.80% at 19280.80, and the Nifty down 126.75 points or 2.15% at 5780.90.

About 1658 shares have advanced, 1353 shares declined, and 56 shares are unchanged.

Rajen Shah of Angel Broking said that markets are going to consolidate and there could be a 15-20% upside over the next one-year. He added that there could be a bout of profit booking and liquidation, but there is nothing to panic.   

"Markets are going to see consolidation and net-net, over the next one year, we could see 15-20% kind of upside. I am not worried about this fall. Last week, on Monday, the index was at about 18,700. Since then, we recovered about 900 points and are just about 1,000 points down from the top. That is about 4.5% compared to other Asian markets, which are down between 12-15%. So, compared to the Asian markets, we have done reasonably well. We could see some bout of profit booking and some liquidation and we could see the markets consolidate. But I think there is no reason to panic about anything. I think there is substantial room even from the current levels for the midcaps to participate in the coming months," commented Shah.

Rajat Bose of rajatkbose.com said that the developments that happened in the last 20 minutes of trade were worrying. Bose did not expect the markets to fall below 5,817. He states that 5,752 is the crucial support now and if it does not hold, then things might turn worse. 

"The developments that happened in the last 20 minutes of trade were really worrying, because I was not expecting the markets to actually fall below 5,817. That was the low posted by Nifty, last Friday. Now, that it is trading below that, I am looking at the level of 5,752. That would be a crucial support and that support should hold. If it does not hold, then things could turn much worse. We might even see 5,700 getting broken," stated Bose.