Mumbai: With every passing day, the hope of a pullback rally, which started six trading sessions back for the market, seems to be fading. The petrol price hike coupled with discomforting inflation numbers haunted markets on Monday.
The immediate resistance level for the Nifty now appears to be 5600. Crude again dipping below 100 levels was the only positive cue one can take going ahead.
The markets opened on a weak note echoing weak Asian and European markets. Rate sensitives like auto, banks and realty were trading edgy before inflation numbers. April inflation data provided spunk for the bears and dragged markets even lower.
The Sensex shut shop at 18345.03 down 186.25 points or 1.01 per cent and the Nifty closed at 5497.35, down 47.40 points or 0.85 per cent. The breadth of the market was also sluggish. About 1101 shares advanced, 1719 shares declined, and 821 shares remain unchanged.
Nifty gainers: Ranbaxy Labs, Hero Honda, Sun Pharma, Ambuja Cements and Sesa Goa up 1-6 per cent.
Nifty losers: Jaiprakash Associates, Siemens, DLF, Bajaj Auto and Tata Steel were down 2.5-3 per cent.
Top percentage gainers on the BSE: Halonix, Mediaone Global, Cravatex, Sabero Organics and Renaissance Jewellery were up 20 per cent each.
Top percentage losers on the BSE: Excel Crop Care, Kinetic Eng, Trend Electron, Yuken India and Paramount Print were down 10-16 per cent.
The most active shares on NSE were SBI, Tata Motors, Glenmark, Infosys and ONGC.
Broader markets- Midcap gainers: Glenmark, Sun Pharma Adv, MVL, Wockhardt and Guj Flourochem were up 4-11 per cent.
Midcap losers: CMC, Essar Shipping, GlaxoSmith Con, M&M Financial and Sunteck Realty were down 5-6 per cent.
Smallcap gainers: Halonix, Saint-Gobain, Riddhi Siddhi Gluco Biols, Ajanta Pharma and Gati were up 5-15 per cent.
Smallcap losers: Excel Crop Care, Parenteral Drug, Empee Sugars, Rain Commodities and English Indian Clays were down 9-15 per cent.
Sectoral check: BSE realty, metal, bankex and FMCG indices were down over 1 per cent each. In the realty space, Anant Raj Ind, Sunteck Realty, DLF, Mahindra Life and Unitech were down 2-5 per cent.
IndusInd Bank, Canara Bank, Kotak Mahindra, PNB and IDBI Bank cracked 2-3 per cent in the banking sector.
Defensive sector FMCG too fell in the bear trap today. Tata Global Bev, ITC, Marico and HUL lost in the range of 1-2 per cent.
Buzzing Stock: Glenmark Pharma sparkled 11.54 per cent in trade today. Glenmark Pharma signed licensing deal with Sanofi today. The company will receive upfront payment of USD 50 million. The deal is for commercialisation of GBR 500, reports CNBC-TV18.
F&O Action: Nifty April futures added 10.7 per cent in open interest on short side. The volatility indicator, India VIX ended at 21.46, up 4 per cent. Nifty open interest Put Call Ratio stands at 0.97 versus 1.03. Nifty 5500 call added 70 per cent in open interest clearly indicating huge call writing. It will take some valiant effort for the bulls now to break 5500-5600 range on the upside for May series.
Technical view: "Directionally it seems to very clear the market is continuing to look sideways to negative and most Nifty traders at this point would still like to prefer taking shorts and at this point don’t see any kind of upward breakout in some of the significant heavyweights. So all in all put together the call is to be on the short side." says Rahul Mohindar, Technical Analyst.
Turnover: The total turnover for the day was Rs 109752.96 crore. Segment wise breakup- NSE Cash Rs 8377.59 crore, NSE F&O Rs 99272.23 crore, BSE Cash Rs 2103.14 crore.
Rupee, Gold, Silver Overseas gold steadied on Monday, as the twin forces of deepening concern about the euro zone debt crisis and the growing strength of the dollar offset each other, while investors kept silver pinned near last week's 2-1/2-month lows.
The rupee slid to it's lowest in more than 8 weeks on Monday as weakness in domestic shares as well as the euro dampened sentiment for the local unit. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
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