Domestic market witnessed a weak trend and benchmark indices drifted to hit their lowest level in
nearly two weeks in early afternoon trade. After the positive opening of European indices market
witnessed some buying and entered into positive zone. However volatility was on higher side. The
government's decision to allow qualified foreign investors to invest directly in local equities and gains
in European shares underpinned sentiment as the market snapped a four-day losing streak. IT stocks
rose on a weak rupee. Interest rate sensitive realty stocks declined on expectations of weak Q3 results.
Shares of two wheelers manufacturers tumbled on a likely hike in petrol prices and adverse sales
forecast. Bank stocks were mixed after on 30th Dec, 2011 RBI issued draft guidelines outlining proposed
implementation of Basel III capital regulation in India. In the last hour, the benchmark indices surged,
aided by oil & gas, IT and banks, and managed to close with modest gains. Sensex shut shop at 15517,
up 63 points and Nifty at 4636, up 12 points from the previous close. CNX Midcap index was down 0.3%
and BSE Smallcap index was up 0.1%. The market breadth was positive with advances at 693 against
declines of 584 on the NSE
Level wise, closing above the threshold 4615-4620 levels may extend some support to the bulls
in the forthcoming sessions. However the crucial resistance level 4670-4680 has to break for any
upside movement.
Nifty, still trading below its vital 9, 14, 50,100 & 200 days SMA placed at 4698.17, 4685.86,
4932.24, 4968.58 and 5274.41. These may act as resistance in coming days.
Broader market witnessed feebly positive sentiments, segments, like small cap and midcap were
feebly positive. But owing to weakness in large caps, bulls lost the control to the bears but with
reduced margin in most part of the day.
Though, VIX, the barometer of uncertainty, corrected sharply and closed at 27.53 yet it indicates
a more than average volatility in market in the forthcoming sessions.
RSI (14) for the session was at 40.03 levels and MACD closed above the signal line
NIFTY LEVEL
R1-4690
R2-4750
S1-4610
S2-4590
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