The Nifty took a breather today and consolidated around 5420-mark after serious drubbing it received at the hands of bears for the first two days of the week. A possible contraction in loan growth of India's largest commercial bank in next few quarters was reflected in realty and auto stocks.
All eyes are now set on EGoM meet which is scheduled for the next week. The main agenda of this meeting will be diesel price hike and subsidy sharing mechanism.
The bears switched gears from heavyweights to broader markets today. Many midcap and smallcap stocks opened huge cuts despite flat closing for the benchmark index.
Nifty open interest Put Call ratio of 0.9 will further discourage traders to go long. The Nifty has been forming head and shoulder top reversal pattern on the daily chart since first week of March 2011. Overall, the markets have turned weak and bears have an upper hand over bulls in the near term.
The Sensex closed at 18086.2 down 51.15 points or 0.28% and the Nifty shut shop at 5422 down 16.95 points or 0.31%. About 1052 shares advanced, 1772 shares declined, and 817 shares remain unchanged.