Nifty under pressure as rupee weakens; FMCG, banks decline
MUMBAI: The Nifty failed to hold on to opening gains and slipped in the red in absence of buying action after a three-day rally and rupee
weakness. According to analysts, the benchmarks seem to have touched
the upper end of the trading range and traders should start booking
profits in long positions.
Meanwhile, the rupee has opened on a weaker note against the US dollar. The partially convertible rupee was at 66.68 per dollar down 68 paise against its previous close of 66 per dollar. It touched a high of 66.27 and a low of 66.67 in today's trade.
The U.S. crude oil prices have also slipped 0.7 percent to $106.85 a barrel, while Brent lost 0.1 per cent to $114.25.
"Earnings downgrades might cap material upside potential; we forecast a Nifty range of 5,000-5,850 in 2013. IT services remains our key Overweight, we are also Overweight telecom, oil and media; we are Underweight on financials, industrials, metals and consumers," said Gautam Chhaochharia of UBS.
"We have a Neutral stance on autos and pharmaceuticals. Our most preferred stocks are: InfosysBSE -1.21 %, RILBSE -2.57 %, Tata Motors, ITCBSE -1.17 %, Cairn IndiaBSE -0.09 % and BhartiBSE -0.27 % Airtel; our least preferred stocks are: IDFCBSE -2.63 %, Jubilant Food, Adani PowerBSE -1.91 % and TitanBSE -1.65 % Ind," he added.
At 09:35 a.m.; the 50-share index was at 5,517.85, down 32.90 points or 0.59 per cent. It touched a high of 5,580.95 and a low of 5,508.25 in trade today.
The S&P BSE Sensex was at 18,776.86, down 109.27 points or 0.58 per cent. It touched a high of 19,007.31 and a low of 18,776.34 in trade today.
"We are observing a breakout from the 'Downward Sloping Trend Line' (please refer the exhibit) on daily chart. Moreover, it has also managed to close above the daily '20-EMA', which is a sign of strength. Hence, going forward, if Nifty continues to stay above 5,565 then we may expect this rally to continue towards 5,600 - 5,640. On the flipside, 5,500 - 5,455 would act as immediate support levels in coming trading session," said Angel Broking note.
The S&P BSE Midcap Index was up 0.38 per cent and the S&P BSE Smallcap Index gained 0.41 per cent.
The S&P BSE Auto Index was up 0.81 per cent, the S&P BSE Capital Goods Index was 0.70 per cent higher, the S&P BSE Metal Index advanced 0.70 per cent and the S&P BSE Realty Index was up 0.31 per cent.
Hero MotoCorpBSE -3.85 % (2.37 per cent), HDFCBSE -4.52 % (2.16 per cent), Reliance (1.22 per cent), Hindustan UnileverBSE -1.57 % (0.79 per cent) and GAILBSE -0.33 % (0.78 per cent) were among the major Nifty losers.
BHELBSE 2.65 % (2.48 per cent), Jaiprakash AssociatesBSE -0.69 % (1.79 per cent), Coal IndiaBSE 1.71 % (1.63 per cent), Tata MotorsBSE 2.07 % (1.53 per cent) and Kotak BankBSE -1.15 % (1.44 per cent) were among the top Nifty gainers.
The market breadth was positive on the NSE with 642 gainers against 390 losers.
The foreign institutional investors bought shares worth Rs 475.92 crore while domestic institutional investors were net sellers worth Rs 285.81 crore on Monday as per the provisional data from the National Stock Exchange.
The Asian markets continued to move higher on the back of positive economic data from China and other euro zone countries. Japan's Nikkei 225 rallied 2.57 per cent, Hong Kong's Hang Seng was up 1 per cent, South Korea's Kospi index was up 0.63 per cent and China's Shanghai Composite gained 0.58 per cent.
Meanwhile, the rupee has opened on a weaker note against the US dollar. The partially convertible rupee was at 66.68 per dollar down 68 paise against its previous close of 66 per dollar. It touched a high of 66.27 and a low of 66.67 in today's trade.
The U.S. crude oil prices have also slipped 0.7 percent to $106.85 a barrel, while Brent lost 0.1 per cent to $114.25.
"Earnings downgrades might cap material upside potential; we forecast a Nifty range of 5,000-5,850 in 2013. IT services remains our key Overweight, we are also Overweight telecom, oil and media; we are Underweight on financials, industrials, metals and consumers," said Gautam Chhaochharia of UBS.
"We have a Neutral stance on autos and pharmaceuticals. Our most preferred stocks are: InfosysBSE -1.21 %, RILBSE -2.57 %, Tata Motors, ITCBSE -1.17 %, Cairn IndiaBSE -0.09 % and BhartiBSE -0.27 % Airtel; our least preferred stocks are: IDFCBSE -2.63 %, Jubilant Food, Adani PowerBSE -1.91 % and TitanBSE -1.65 % Ind," he added.
At 09:35 a.m.; the 50-share index was at 5,517.85, down 32.90 points or 0.59 per cent. It touched a high of 5,580.95 and a low of 5,508.25 in trade today.
The S&P BSE Sensex was at 18,776.86, down 109.27 points or 0.58 per cent. It touched a high of 19,007.31 and a low of 18,776.34 in trade today.
"We are observing a breakout from the 'Downward Sloping Trend Line' (please refer the exhibit) on daily chart. Moreover, it has also managed to close above the daily '20-EMA', which is a sign of strength. Hence, going forward, if Nifty continues to stay above 5,565 then we may expect this rally to continue towards 5,600 - 5,640. On the flipside, 5,500 - 5,455 would act as immediate support levels in coming trading session," said Angel Broking note.
The S&P BSE Midcap Index was up 0.38 per cent and the S&P BSE Smallcap Index gained 0.41 per cent.
The S&P BSE Auto Index was up 0.81 per cent, the S&P BSE Capital Goods Index was 0.70 per cent higher, the S&P BSE Metal Index advanced 0.70 per cent and the S&P BSE Realty Index was up 0.31 per cent.
Hero MotoCorpBSE -3.85 % (2.37 per cent), HDFCBSE -4.52 % (2.16 per cent), Reliance (1.22 per cent), Hindustan UnileverBSE -1.57 % (0.79 per cent) and GAILBSE -0.33 % (0.78 per cent) were among the major Nifty losers.
BHELBSE 2.65 % (2.48 per cent), Jaiprakash AssociatesBSE -0.69 % (1.79 per cent), Coal IndiaBSE 1.71 % (1.63 per cent), Tata MotorsBSE 2.07 % (1.53 per cent) and Kotak BankBSE -1.15 % (1.44 per cent) were among the top Nifty gainers.
The market breadth was positive on the NSE with 642 gainers against 390 losers.
The foreign institutional investors bought shares worth Rs 475.92 crore while domestic institutional investors were net sellers worth Rs 285.81 crore on Monday as per the provisional data from the National Stock Exchange.
The Asian markets continued to move higher on the back of positive economic data from China and other euro zone countries. Japan's Nikkei 225 rallied 2.57 per cent, Hong Kong's Hang Seng was up 1 per cent, South Korea's Kospi index was up 0.63 per cent and China's Shanghai Composite gained 0.58 per cent.
VIJAY KR YADAV
PGDM SEM 1
SO- TIMES OF INDIA
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