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.
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