Domestic market closed a choppy day of trade on an absolutely flat note. Trade was range bound
and negative for most part of the day. In line to weak Asian stocks and expectations of lackluster Q3
December 2011 earnings, our market debuted the new week on weak note and traded with cuts.
Positive developments such as the government may soon issue the notification allowing 100% foreign
direct investment in single brand retail and the Civil Aviation Ministry is likely to drop its opposition to
higher investment by foreign airlines in the sector and agree to let them hold up to 49% in domestic
carriers had positive impact on sector specific stocks. Buying in the early afternoon session occurred
in the indices heavyweights such as BHEL, SAIL, Reliance Infra, Cipla , Maruti, JSPL etc supported the
recovery in the benchmark indices. Asian indices too witnessed a good recovery at end, this also
supported the recovery impetus in our market. Positive trading of the US premarket indices’ future
coupled with firm European indices too strengthen buying sentiments in our market. Oil & gas, FMCG
and auto stocks were under pressure today but some support came from Power, capital goods and
metals. Sensex closed at 15814, down 34 points and Nifty at 4742, down 4 points from the previous
close
• Level wise, closing above the threshold 4740 levels may extend support to the bulls in the
forthcoming sessions.
• Broader market witnessed mixed sentiments and with the exception of Large cap, Midcap and
small-cap segments were closed on positive note. Owing to this firmness, bulls regained the
control from bears and that’s too with good margin.
• Despite a volatile performance, Nifty displayed a stability and remained above its vital 9 and
14 day’s SMA placed at 4712 & 4721. But closed below 50& 100 day’s SMA placed at 4887 and
4943.
• Though, VIX, the barometer of uncertainty, corrected sharply and closed at 25+, yet it indicates
a more than average volatility in market in the forthcoming sessions.
• RSI (14) for the session was at 47.86 levels and MACD closed above the signal line
R1-4790
R2-4856
S1-4717
S2-4665
