Markets close flat; midcaps, smallcaps outperform

20 April 2009

The benchmark indices closed the first day of the week on a flat note amid volatility. Both the indices were positive in the first half of the trade while they turned negative in the second half of the trade, but the volatility remained throughout the session. However, the broader indices outperformed the benchmark indices.

Metal, capital goods, select auto and telecom stocks witnessing buying interest. However, the sell-off in financials, pharma, select technology and FMCG stocks capped the gains.

The 30-share BSE Sensex swung 346.38 points between an intraday high of 11,209.66 and low of 10,863.28, before closing at 10,979.50, down 43.59 points or 0.4%. The 50-share NSE Nifty shut shop at 3377.10, down 0.22% or 7.3 points, after swinging 101.65 points between day's high/low of 3441.10 and 3339.45, respectively.

ICICI Bank, HDFC, ITC, NTPC, Tata Power, TCS, SBI and Reliance Communication were negative contributors to the Sensex while L&T, Bharti, Reliance Infrastructure, Sterlite, Tata Motors, Tata Steel and ACC were leading counters.

Gautam Shah of JM Financial believes that bears are looking powerful at this stage, which means markets are due for a correction from the current levels. According to him, the Nifty is likely to offer resistance at 3,490-3,500 level, while the Sensex may find it difficult to cross the 11,300-11,400 level.

Speaking exclusively to CNBC-TV18, Shah said markets may correct 10% from current levels folllowing which bear market will make a come back. He reminded investors that the month of October and May have a bad track record, and "May might spoil the party for markets."