Market grinds lower; 5300 make or break level for Nifty
25 May 2011
The NSE Nifty-50 index continued to grind, ending the session just above the all-important support level of 5300.
A break below 5300 would now confirm the head and shoulder top reversal pattern. The projected price decline goes all the way to 4750 mark, however, that looks far from the current levels. The level of 5300 has been a major trend line support for the Nifty in last 18 months highlighting the significance of this level.
The Sensex shut shop at 17847.24 down 164.73 points or 0.91% and the Nifty closed at 5349.20 down 45.65 points or 0.85%.
About 1112 shares advanced, 1673 shares declined, and 857 shares remain unchanged.
The euro and oil slipped on Wednesday as a rally the previous day fizzled on fears about Europe's spreading debt crisis and the potential for a further reduction of positions in risky assets.
Asian stocks also fell, tracking weakness on Wall Street as firmer commodity prices were offset by lingering concerns over the economic outlook for the United States as well as euro zone debt woes.
Gold inched down after having rallied to its highest level in three weeks in the previous session, but bullion priced in euro struck a record on concerns about the impact of a possible debt default by Greece on other euro zone economies.
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