Nifty ends below 4700 on profit booking; TECk, power dip

The Nifty took a pause today after seeing nearly 5% rally in the last three sessions. It closed below the 4700 mark on the back of profit booking in telecom, power, pharma, private banking and technology shares. ONGC was the main dragger. Negative European cues (slipped around 0.8-0.9%) and 0.6-0.8% fall in US index futures also weighed on the markets.

However, shares of auto, aluminium, cement and oil marketing companies witnessed buying interest along with Reliance Industries and HUL.

The equity benchmarks remained volatile throughout the session barring a big blip during 14-15 hours IST. The Sensex had touched the 16,000 mark in the first few seconds of the opening trade, for the first time since June 2, 2008.

The 30-share BSE Sensex closed at 15,830.98, down 93.25 points or 0.59%, after seeing an intraday high of 16,002.46 and low of 15,699.13. The 50-share NSE Nifty has touched a day's high/low of 4731.45 and 4642.60, respectively, before closing at 4680.50, down 0.66% or 30.9 points.

Rahul Mohindar of viratechindia.com said the Nifty had next important support at 4,620. "If 4,620 breaks down, maybe we head to 4,550. So again I am not talking of very large cuts that are visible and one is still reading into this as more of a corrective price action. There are lot of traders sitting on the side who have missed the bus and probably do want to use such dips as opportunities to get into. So, I won't rush to conclusions unless 4,620 is broken and even if that were broken, it is a short-term correction that might set in,' he added.

However, Sakthi Siva, MD & Head at Credit Suisse EM Strategy said they remained positive on Asian markets as well as the Indian market. "We upgraded our targets for Asia. We are actually now looking for a further 15-20% upside to Asian markets from here. And within that, Nilesh Jasani, our Indian strategist has also upgraded his Sensex target to 17,000. So, as a house, we remain positive on both Asian as well as Indian equities," he added.