After last Friday’s extremely positive closing, Nifty traded rather sluggishly today.
Nifty closed 14 points lower than last day’s close, and it could not maintain the psychologically important level of 7550, which had emerged as the open or close levels several times in the past trading sessions.
The sector to blame behind today’s weakness is the banking sector. Bank nifty closed 191.90 points lower (-1.24%), with ICICI Bank and Syndicate bank emerging as the biggest losers, both losing to the tunes of over 5.5%.
There was much shine in IT sector in the beginning of the day. However, the gains were lost to the overall market weakness.
Two specific stocks that gave a fantastic movement on the basis of their results are EROSMEDIA which closed 20% higher and Kaveri Seeds (KSCL) which closed 12.40% higher . Both the stocks announced their results today.
Moving on to the commodities, Gold has been heading higher off late and is currectly trading somewhere near its 12 weeks high. On the chart of GOLD a down ward sloping channel suggests that 1143 could be the level of resistance to look out for. Crude on the other hand has already started turning lower from its last week’s upside momentum.
On the international front, China’s Output numbers were announced, and they were low, indicating slowing down of China’s Industrial activities. The European Indices, FTSE and CAC are also under pressure today.
CHART OF THE DAY
Larson and tubro opened much higher today but lost its gains to market weakness. The double bottom has formed on its chart , indicating that the 1070 level is a good support. The stock sees buying around this level and today’s action was a confirmation of the same as the stock open with an upside gap.
On the RSI indicator, there is a positive divergence from the price. The indicator registered a higher low, though the price traded at the same level of 1070. This is a positive factor for the stock.
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