Sep 18, 2008, 11.35 AM IST | Source: CNBC-TV18

Nifty precariously poised at 4K levels

Markets could not play follow-up to yesterday’s pullback during the course of the day. Markets started okay and went to about 4,100 and then lost way. There was no conviction above 4,100 Nifty. In the event, Sensex gave up about 250 points today from yesterday’s pullback, and Nifty lost about 60 points.

Markets could not play follow-up to yesterday’s pullback during the course of the day. The hope was that after the good pullback yesterday from the lows of the session, we might have seen some follow-through today that would have taken us closer to 4,200. But that was not to be.

 

Markets started okay and went to about 4,100 and then lost way. There was no conviction above 4,100 Nifty. Global markets remained quite volatile during the day. Most of Asia started strong and then closed deep in the red. Even Europe was very volatile while we were trading. The market just did not have a sense of what lies ahead with global cues. It could be up or down.

 

Though the AIG bailout news has come in after the markets closed out there, there is a difference of opinion on how the US markets might take that bit of news and therefore people were kept guessing.

 

In the event, Sensex gave up about 250 points today from yesterday’s pullback, and Nifty  lost about 60 points. So, we are back to just about 4,000 Nifty once again, and the Sensex too is back to around 13,200. So, today has not been a great session of trading.

 

There are many culprits for dragging the index down today whether it is an ICICI Bank that continues to languish with the Lehman fears. Other banks and oil marketing companies corrected today. SBI or HDFC Bank or some of the oil marketing companies like BPCL that have been going up, all gave back some of their profits.

 

Real estate continues to struggle, Unitech had a terrible session. DLF was not much better. Ranbaxy had a very bad fall after news of the US FDA warning that came in earlier today. The metals still have it very rough with Nalco , Sterlite , and Tata Steel having a bad day once again. ITC too did not help the index one bit. That stock lost about 4-5%.

 

It could have been worse had it not been for some of the upstream oil companies like ONGC and Cairn . Crude bounced back to USD 94 per barrel and so did these companies. A few cement stocks like ACC , Ambuja and the odd Tata Motors moved up a bit.

 

The breadth was nothing special. We had 380 advances to 880 declines. The midcap index was down as well. So, there was no support from that side either. In fact, many popular trading stocks like IFCI , RNRL and Nagarjuna Fertilisers ended quite a bit down in the red. The natural resource companies, Gujarat NRE and Sesa Goa continued their bad run from yesterday. Some of the real estate plays like HDIL and Indiabulls Real Estate were down. Financials across the board had a bad day. DCB , Axis Bank , IDBI and even some of the non-bank stocks like Indiabulls Financial, India Infoline, and Reliance Capital had fairly bad sessions.

 

A few like Indian Bank and Yes Bank stood out today. Some of the newer listings like Austral Coke and Resurgere did well.

 

It was an unexceptional day for the broader market and even the index has come off once again. It is precariously poised at the 4,000 level, which is a bit of a sentiment Plimsoll Line.

READ MORE ON  Udayan Mukherjee, Sensex, Nifty
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