Sensex ends 140 points down despite positive global cues
08 Apr 2011
Finally the profit booking stepped in - the benchmark Sensex shed nearly 140 points on Friday despite positive global cues. Banking, oil & gas, realty, metal, power, auto and technology companies' shares dragged the market down today.
Profit booking was due as the market looked overbought after the rally, says, Mitesh Thacker, Technical Analyst. The fall, he believes, probably will end up somewhere around 5780-5750 where the short-term averages are placed. "That's a level where we need to watch the Nifty carefully. If it is profit taking and normal correction in I think we should not go deeper from there and we should again start moving up."
Overall it was a consolidation week for the markets after the sharp rally seen in previous two weeks. The Nifty was in a tight range. "The way put and call build ups are at 5,800 and 6,000 respectively, the range is quite tight and perhaps it's going to be just about a sideways aimless movement, says Vineet Bhatnagar, MD of MF Global.
Experts feel that market won't see major fall due to support from FIIs. "Noteworthy fact is that, from about 22 of March which was a bottom they have been very keen buyers in the cash market. The cumulative buying since then for FII segment has been closed to about USD 2.5 billion, about Rs 11,000 crore. So, there they have provided an underlying strength or they have moved in quite strongly into the cash market," Malkani said.
He feels that they are long, net long even in index future at this point in time.
The 30-share BSE Sensex fell 139.73 points or 0.71%, to close at 19,451.45 and the 50-share NSE Nifty lost 43.70 points or 0.74%, to settle at 5,842.
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