Nifty ran into profit taking; resistance seen below 6200

After four good days we ran into a little bit of profit taking for the Nifty. Not entirely unexpected and finally closed the day about 15-20 points lower. Volumes were much higher today at nearly Rs 120,000 crore compared to just Rs 75,000 crore yesterday. So participation is coming back after the end of the holiday week.

Today of course the market was dragged down by banks, lot of brokerages have put downgrades on the banking sector perhaps because its over-owned, also deposit rates are going up, they went up today as well for some banks prompting fears of some compression in net interest margins, all of that is weighing down this rate hike environment on the bank stocks. So ICICI, SBI, HDFC Bank all these names were down and down quite a bit today. That aside Bajaj Auto which fell 4% yesterday slipped another 3% today after sluggish December numbers and some of the telecom names like R Com did not look very good. In fact there was profit taking in a few of the metal stocks as well like Tata Steel and Sesa Goa. On the way up the Nifty managed to cancel out some of the losses of the banking sector because of gains in Reliance Industries and HUL and ITC, HUL particularly from FMCG looked quite smart today but the biggest gainer there was Suzlon because of all sorts of speculation that, unconfirmed by the management so far on Gamesa putting in a bid to buy out the company