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MUMBAI, Jan 21 (www.GoldTradingcalls.com) – Even after good corporate resutls by many frontline corporates, the markets failed to make any substantail rally. Sensex was moving during the last fortnight within a narrow range, the stock market finally gave way on Thursday, with the Sensex and the Nifty falling 2.4 per cent.
The Sensex shed 423 points — its biggest fall in the last two months — to close at 17,051. Just two weeks ago, the Sensex had touched its 52-week high of 17,790. The Nifty fell below the 5,100 level, losing 127 points.
Analysts attributed this to the lower-than-expected quarterly corporate profits, as well as to weak global markets.
For the last 15 days, the Sensex had been swinging within a narrow range of 17,400-17,700. These were the resistance levels and the market was just waiting for a reason to decisively move one way or the other
Weak global cues
Indian markets Stocks also tracked the overnight European and US markets which fell in reaction to China’s attempt to prevent its economy from overheating by controlling credit flow. The Chinese authorities ordered some of their big banks to curb lending for the rest of January after that country clocked a 10.7 per cent growth for the fourth fiscal quarter.
Analysts said this raised fears that the RBI might also take measures to suck out liquidity from the Indian markets.
FIIs were net sellers of equities for Rs 853 crore, according to the exchanges’ provisional data. Domestic institutional investors were net buyers for Rs 231 crore.
As can be seen on the Nifty chart, Nifty has broken down from the upwared sloping Trendline along with the MACD having given a sell signal. Investors are advised to book profits and stay on the sidelines until the Sensex / Nifty bottoms out and we dont think is going to happen any sooner.
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