Markets snap 3-day winning streak on profit booking

17 March 2009

The benchmark indices snapped three day winning streak. The markets ended lower after witnessing volatile trade throughout the day. The sell-off in select financial, technology, oil & gas, metal and capital goods dragged the frontline indices lower in the second half of the trade. However, the Sensex tested the 9000 mark while the Nifty touched the 2800 level during the day. 
 
The 30-share BSE Sensex closed the day at 8,863.82, down 79.72 points or 0.89%, after swinging 222 points between an intraday high of 9,024.12 and low of 8,801.79. The 50-share NSE Nifty swung 70 points between a high/low of 2805.60 and 2738.70, respectively. It shut shop at 2757.45, down 0.71% or 19.80 points.

Profit booking in Reliance Industries, SBI, TCS, Infosys, SAIL, HDFC, HDFC Bank, L&T and DLF pushed the indices lower in today's trade while the support was seen from auto stocks and from stocks like NTPC, Reliance Communication, Hindalco, ICICI Bank, ONGC and Tata Power. 

Total traded turnover stood at Rs 68,220.21, wherein F&O segment contribution was at Rs 53883.76 crore. Total turnover also includes Rs 10369.78 crore from NSE Cash segment and Rs 3,966.67 crore from BSE Cash segment.

Looking at the huge F&O turnover, it seems that market could see more short covering. The Nifty March futures ended with 2.45 points discount.

The put-call ratio (PCR) went up again to 1.5, mainly because the 2,700 puts added a huge amount of open interest nearly 15 lakh shares. Even the 2,800 put added about 6 lakh shares. Nifty 2,800-2,900 calls added about 8-6 lakh shares in open interest.

Sectoral indices
BSE Bankex underperformed other indices, was down 2% or 81.63 points, to 4,005.76. Axis Bank, PNB, SBI and HDFC Bank were down 2-5%. However, ICICI Bank gained 0.46%.