Nifty ends below 4450 on sell-off in metals, banks, realty

08 June 2009

The benchmark indices saw huge profit booking on the back of sell-off across the sectors barring technology. Metal, banking, realty and infrastructure stocks dragged the Nifty near to the 4400 mark and the Sensex towards the 14,600 level. Both the indices opened choppy with a positive bias.

The negative global cues also weighed on our markets. The broader indices widely underperformed the benchmark indices. On the sectoral front, the Realty Index was down 10.5% followed by Metal and Bank indices, which declined 6.5% and 4.4%, respectively.

The 30-share BSE Sensex touched an intraday low of 14,604.23, before closing the session at 14,665.92, down 437.63 points or 2.9%. The 50-share NSE Nifty shut shop at 4429.90, down 3.42% or 157 points, after seeing a low of 4404.65.

Among the broader indices, the BSE Midcap Index tumbled 294.93 points or 5.45%, to 5,114.85 and the Smallcap Index fell 5.8% or 374.77 points, to settle at 6,083.88.

Only 4 stocks each out of 30-Sensex and 50-Nifty ended in the green. Frontliners like Jaiprakash Associates, DLF, Tata Steel, Reliance Communication, Reliance Infrastructure, SBI, Ranbaxy Labs, Tata Motors, Hindalco, ONGC, Grasim and ACC plunged 5-10% on the BSE.

Mitesh Thacker, Technical Analyst of miteshthacker.com said, "The Nifty will find it extremely difficult to get beyond 4,600 for a couple of reasons; first one - the 10-week RSI indicator was at around 86 levels yesterday. Since 1994, we have not seen the 10-week RSI go beyond 86 to 89. That is the level where we see the overbought markets generally peak out. So I think we are in for some kind of a broader or bigger consolidation issues involved, a correction from 4,600 which could take us down to 4,320 or even 4,200."