February 04, 2011 / 12:01 IST
The benchmark Nifty slipped below the 5500 level amid extreme volatility at 11:35 hours, pulled down by profit booking after a sharp spike up yesterday. Heavyweights like Reliance Industries, TCS, NTPC, ITC, L&T, HUL, Bharti Airtel, ICICI Bank, DLF and Wipro were taking huge beating with 1-2% fall.
Further losses look likely, says Laurence Balanco of CLSA. "The Nifty has tagged the 5300-5500 support zone that we have been citing, but with no sign of bullish price momentum divergence.However, indices were getting some support from Tata Steel, Tata Motors, SBI, Sun Pharma, ONGC and ACC. Reliance Power and Suzlon Energy were top gainers on Nifty with 2% gain.The 30-share BSE Sensex was trading at 18,315, down 134 points and the 50-share NSE Nifty was at 5,490, down 36 points. The broader indices too erased their gains.In midcap space, Jain Irrigation, S Kumars Nation, Gujarat Flourochem, Havells India and Blue Star gained 4-9%.However, Man Infra, Gammon India, Whirlpool, IVRCL Infrastructure and Money Matters fell 3-5%.In smallcap space, Manaksia shot up 20%. Brigade Enterprises, Zandu Realty, RSWM and Zenith Infotech were up 8-15%.However, Allied Digital plunged 20% as IT department has raided its office premises. Kabra Extrusion, PI Industries, Asian Star and Atco Corp slipped 6-10%._PAGEBREAK_Nifty tests 5550 amid choppy trade; ONGC, SBI gainIndian equities bounced back after a marginal cut seen in initial trade at 10:45 hours, supported by financial, metal, auto, Anil Dhirubhai Ambani Group and healthcare companies' shares. Heavyweights ONGC and BHEL too added more gains, which helped the Nifty to touch 5550 level.Ridham Desai of Morgan Stanley feels that FIIs ownership is now back to the 2009 levels. "We believe valuations are more appealing now. Although fundamentals are shaky, we think that this is now being factored into the price. Consequently we have upgrade financials to neutral. We are funding this by cutting our position in consumer staples by 100 bps."Roopesh Patel of HSBC Securities and Capital Markets too said,
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