The Indian benchmarks ended the day on a sharp negative note on July 30, 2013. Despite dovish tone in RBI Monetary Policy, Nifty failed to see any rally apart from a small spurt as market was highly under hedged. Breakout in INR post policy created panic in markets bringing the big round of shorting. Finally Nifty futures premium started to come under pressure as shorting began. Nifty futuress spread which was @+50pts few days back drifted lower to +33pts but again recovered to +45 by close. Nifty futures fell below 200DMA after holding yesterday. Since last few days slide, non-Banking names are also participating in the down move. Rather Bank Nifty marginally outperformed Nifty today. Nifty spot has dropped to important gap support of 5745 where slide paused. Nifty futures hovered near 5800 towards close where biggest put positions are open. Its only IT names where money was finding way after a stronger guidance by Wipro yesterday & HCL Tech’s results being expected tomorrow. ICICI Bank averted the sell-off ahead of its results tomorrow. Dr Reddys cracked sharply for 4th day & now is below 50DMA. INR broke above 20DMA despite all RBI measures creating a havoc in sentiments. Selling remained more intense in BSE Midcap which dropped to more than 18 months low. A/D opened @1.1x but fell to 0.3x
Further, the market breadth closed negative as five stocks were seen advancing against eleven declining stocks.