The Indian stock markets witnessed a sharp down fall on 19/08/2011, possibly due to the fall in overseas market. Major US, Asian and European markets moved to red on concern that the global recovery is slowing down. By noon, the market received some news regarding a massive earthquake in Japan and consequently the warning issued about a possible Tsunami. Crude traded with negative trend, but gold moved up further indicating the investors’ preference for a safe platform to keep their money away from the vagaries of equity markets.
Nifty opened with a downside gap of 84.85 points. The negative trend continued and touched as low as 4797.90. Nifty closed at 4846.75. The major losers were Tata Motors, Infosys, L&T, BHEL, Dr. Reddy, Axis Bank, ICICI Bank, TCS, Sun Pharma and ITC. The fall in the stock prices ranged from 2.62% to 5.68%. JP Associates, DLF, Hero Motors, Hindalco and Reliance Infra recorded gains for the day.
BSE Sensex closed with a downside gap of 328.12 points at 16141.67. The top gainers on BSE were JPAssociates at 59.50 (2.49%), DLF at 186.9 (2.46%), Hero Honda at 1993.65 (2.19%) and Hindalco at 139.3 (1.12%). The main losers were Infosys Tech. At 2225.40 (5.78%), Tata motors at 713.40 (5.27%), L&T at 1544.95 (4.95%) and BHEL at 1683.25 (4.62%).
Given the current trend, Nifty is likely to open with a flattish note today and may have a support level at 4891.33. If went further down it can touch 4796.63 or even 4747.61 at the bottom level. An upward movement can pull up to 4894.13. If moved up further can test 4942.61 and 5040.11. The banking system is again facing the threat of another interest rate hike, which can invite negative sentiments into the market. Considering the expiry week, there could be a minor pullback due to short covering, but the general trend in the market is likely to be gloomy.
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