Bulls unable to defend upmoves

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Bulls unable to defend upmoves

We had an apology of a rally today. After all the excitement of the morning when we walked in with nearly a 400-point Dow rally under our belt with most Asian markets leaping 3-4%, the way we closed today is so disappointing.

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We had an apology of a rally today. After all the excitement of the morning when we walked in with nearly a 400-point Dow rally under our belt with most Asian markets leaping 3-4%, the way we closed today is so disappointing.

We started of course in grand fashion like the rest of Asia, leaping 600 points straightaway. The Nifty went up above 4900 in opening trade. It looked like we may be able to hold on to our gains as short covering kicked in later in the day, but it was not to be. It just tells you, how deep the lack of conviction in the market right now is. It doesn't matter if we get good tailwinds from global markets, upmoves are just not lasting. People take profits at the smallest of gains, shorts get opened up at higher levels and the bulls are not able to defend any of these upmoves. So, it was a very disappointing end of the session today. For a session that started with a bang, it really ended with a bit of a whimper.

The Sensex finally closing around 15,700 barely 100 points up. The Nifty was almost flat, after starting the day nearly 200 points up. So, it went above 4900, just about managed to close around that 4750 mark.

The breadth was okay about 900 to 300, no complains there. But the midcap index could not strike out anything by way of gains. It was just about flat. Volumes were pathetic. Yesterday was Rs 44,000 crore; today it is about Rs 43,000 crore. Trade has really dipped in the last few sessions. On volatile days, on strong days, it doesn't matter. Volumes are just completely absent.

A few stocks that stood out in weakness and might have dragged the market down were some of those metals once again, Tisco, SAIL , continuing to be under pressure with fears of government interference in pricing. BHEL had another very ordinary day out there. Reliance Energy did not look very strong today. Some of the FMCG heavyweights, Hindustan Unilever and ITC took the day off and Cairn wasn't particularly strong, offset in part by some strength in stocks like ICICI , HDFC . A few of the technology stocks did not look too bad and neither did stocks like Hero Honda or Suzlon .

On the midcaps, we had a listing today from Indiabulls Securities . It did not list well at all and finally closed the day below the Rs 100 mark having started the day closer to the Rs 140-150 level. It is quite disappointing the way Indiabulls Securities listed. I think people would have expected more.