Markets close at new-2008 lows; realty, banks, auto plunge

16 July 2008

Markets closed on a weak note for fourth consecutive day on fears that RBI may hike repo rate and CRR by 50 bps each and Inflation may cross 12% mark, which will be announced on Thursday. Rate sensitives like realty, auto and banking stocks took huge beating on the bourses. Others big losers were metal, select oil and power stocks. Sensex and Nifty both hit new-2008 lows.

Sensex fell 162.17 points to touch an intraday low and new-2008 low of 12,514.02. In morning session, it was trying to hit 13000 mark but could not happen. It closed at 12,575.80, down 100.39 points or 0.79%.

Nifty slipped below 3800 in late trade and hit new-2008 low of 3790.20, down 70.9 points from previous close. It ended with a loss of 44.4 points or 1.15% at 3816.70.

Experts say 12000 level is a key inflection point for the Sensex.

Mukul Pal, CEO, Orpheus Capitals said the key inflection point for the Sensex is at 12,000. "We don't think these levels are going to be easily penetrated. The market has retraced more than two years of gains without a multi-week serious bounce."

Daryl Guppy, Founder and Director of guppytraders.com sees immediate support for Nifty at 3600; below that it will be at 2900. According to him, we will witness a strong bear market if Nifty fails to hold above 3600. He sees support for Sensex at 12200-12380. He feels that Sensex could fall to 10000 levels, if 12200 fails to hold.