The market remained under pressure in morning
trade following weakness in global markets post Fed meet and ahead of big offer
for sale of Coal India on Friday. Banking & financials, metals, telecom and
select technology stocks dragged the market while Reliance Industries, HDFC and
L&T supported the market.
The Sensex fell 150.68 points to 29408.50 while
the Nifty lost 42.45 points to 8871.85 ahead of expiry of January derivative
contracts today. However, the broader markets outperformed benchmarks with the
BSE Midcap and Smallcap indices rising marginally.
Yogesh Radke, head of quantitative research at Edelweiss Securities is of the view that with rights issues, offer for sale, divestments, fund raising in the pipeline, there could be large supply in the market, so one needs to be a bit cautious at present and unwind long leverage positions.
Yogesh Radke, head of quantitative research at Edelweiss Securities is of the view that with rights issues, offer for sale, divestments, fund raising in the pipeline, there could be large supply in the market, so one needs to be a bit cautious at present and unwind long leverage positions.
The leverage positions in the Futures market have
gone as high as Rs 1 lakh crore, he adds.
In an interview he says, although the India story
is still intact, the Nifty is likely to consolidate or correct around 4 percent
and see levels of 8600-8500. According to him 9000 levels would act as strong
resistance.
Coal India dropped nearly 4 percent ahead of
stake sale by the government tomorrow. HDFC, ICICI Bank, Sun Pharma, ONGC,
Bharti Airtel and Mahindra & Mahindra declined 1.4-2.4 percent.
However, HDFC Bank and Lupin gained more than a
percent on CCEA clearance for foreign investment in company. Reliance
Industries climbed over a percent followed by L&T, HUL, Wipro and Hero
Motocorp with 0.3-0.9 percent upside.
Dr Reddy's Labs gained 0.4 percent ahead of Q3
earnings. According to a poll, profit is expected to fall 13.6 percent
year-on-year to Rs 534.3 crore.
No comments:
Post a Comment