21 Dec 2009 16:25

21 Dec 2009   16:25

The selling in almost all the sectors hammered the Sensex. It lost over 100 points in the last half an hour of trade. Capital goods, metal, auto and realty stocks were the major losers. The Nifty also touched 4950 during the day but managed to close above that level.


Among the largecaps, Reliance Industries, TCS, NTPC, Wipro, Cairn, ICICI Bank and Idea Cellular were the only gainers. Overall, the markets witnessed consolidation in today's trade as well.

Laurence Balanco, Asian Technical Research at CLSA said, "As long as we can consolidate between this 4400 and 5200 area, I still think that would be a positive foundation that is formed for the break to the upside."

The 50-share NSE Nifty fell 0.7% or 35.10 points, to settle at 4,952.60, after hitting an intraday low of 4,943.95.

Reliance Industries slipped over 1% in early trade but it clawed back in the green and closed 0.9% higher. There were reports that SEBI asked government to consider action against the company for allegedly routing funds to dummy companies for buying large quantity of its shares in 2000.

The BSE Capital Goods, Metal, Realty and Auto indices declined 1.2-1.6%. Capital goods was the major losing sector; L&T fell 2.38%. BHEL, ABB and Punj Lloyd were down over 1%. Siemens was down 0.27%.

Metal stocks like NALCO and Hindalco tumbled 4% each. Sterlite Industries, Jindal Steel, JSW Steel, Tata Steel, Sesa Goa and SAIL lost 0.6-2%.

Among the auto stocks, M&M, Bajaj Auto, Ashok Leyland, Maruti Suzuki and Apollo Tyres slipped 1.5-3%. Bharat Forge, Tata Motors, Amtek Auto and Hero Honda were down 0.3-1%.

DLF and Unitech fell over 2% in the realty space.

Nava Bharat Ventures surged 5.6% with 750% jump in volumes, as its subsidiary Nava Bharat Singapore has acquired 65% equity stake in Maamba Collieries Limited.

Zee Entertainment Enterprises gained 4%, it will consider a proposal for restructuring of the businesses of ETC Networks Ltd, a Subsidiary of the company. ETC Networks rallied 5% and its volumes surged 1,061%.

Prime Focus rose 3% but volumes jumped 1,063%, as it earned $18 million for providing visual effects in Avatar Movie.

MRF plunged nearly 7% though its FY09 numbers were good. It has reported 75% growth in its FY09 consolidated net profit of Rs 250.8 crore as against Rs 143.4 crore in previous year. Consolidated net sales increased 12.32% to Rs 5,668.3 crore versus Rs 5,046.4 crore.

The F&O segment is not looking good today. We have seen constant selling by FIIs. Last week they sold around Rs 3000 crore in the F&O put together. The discount is still maintained around 4-5 points and we are seeing addition of 20 lakh shares in the futures.

The important thing in options is that we were seeing call writing happening at 5,200-5,100 last week but today we have started to see is that people are writing calls at the 5,000 level as well.

In the 5,000 call we have seen an addition of 17.5 lakh shares in open interest, which is huge on this base, and the premium has come down by 27%. So we are not seeing good signs coming from there.