Mr. Deepak Jasani, Head of Retail Research, HDFC Securities.
Nifty fell for the sixth consecutive session on Sept 28 pulled down by weak global cues and a falling Rupee. Nifty opened the gap down but inched up its way to the green post at 1130 Hrs. A late bout of selling post-1330 Hrs pulled the Nifty down again. At close, Nifty closed 0.87% or 148.8 points lower at 16858.6.
Volumes on the NSE were the lowest in two months. Among sectors, Metals, Banks and Power fell the most while Healthcare, IT and Auto indices rose the most. The broad market outperformed with the Midcap/Smallcap indices falling 0.43-0.47% and the advance-decline ratio improving over the previous day to 0.49:1, though still being in the negative.
World shares sank to two-year lows on Wednesday, hammered by spiralling borrowing costs that intensified fears of a global recession and sent investors into the arms of the safe-haven dollar. An intensifying energy crisis in the European region and a deteriorating growth outlook also dampened sentiments.
South Korea, Taiwan and China began interventions by way of dampening yields, banning stock short sales and supporting the currency. In India, the PM Garib Kalyan Anna Yojana was extended for 3 months creating fears of pressure on the fiscal.
Nifty continued its down move and now the 16653-16752 band could provide support for the near term. On up moves,16978 could offer resistance.