Bear grip continues on Dalal Street, Sensex to test key support levels The bear grip on Dalal Street is likely to continue on Wednesday, as the indices across the world are experiencing massive selling led by the triggered by financial crisis in US and Europe. The Sensex is likely to find support at 11,230.00, if this support is broken the next support will be at 10,086.00, the level we have seen in July 2006.
U.S. stocks on Tuesday declined for a fifth session straight, prolonging a sharp sell-off that had the S&P 500 ending at a five-year low, as investors found little respite in the Federal Reserve's latest steps to ease frozen credit markets. But the blue-chip index spent the bulk of the session in triple-digit losses and ended down 508.39 points, or 5.1%, at 9,447.11. Asian markets tumbled Wednesday, with financials such as Mitsubishi UFJ Financial Group sliding after steep losses on Wall Street overnight. Toyota Motor Corp. slumped on a newspaper report that the automobile giant was expected to post a 40% drop in operating profit, while resource stocks such as BHP Billiton shrank on concerns global demand for commodities could weaken. The Japanese benchmark Nikkei dropped by more than 4 percent in early trading. As slump in equities around the globe weighed on the price of crude oil this morning. Crude oil for November delivery fell 82 cents, or 0.9 percent, to $89.24 a barrel in electronic trading on the New York Mercantile Exchange. Expect some more selling especially in the tech sector, followed by Realty and commodity stocks. Dismal results by Alcoa might have an adverse impact on Aluminum stocks like Nalco and Hindalco. Strelite Ind will be under pressure as well, as the selling spree continues in metals stocks across the globe. SEBI's decision to relax the curbs on P-notes and RBI's decision to cut the CRR rate are good news for the liquidity markets, but we believe they came in at a point of time where investors have lost confidence in the equity markets. Good move but too late to contain the damage. We still remain cautious about the current environment in the market and advice investors against fresh investments in the equity markets. It is a great idea to wait until things settle down and plan the next step accordingly. Market Close Box: BSE Sensex 11695.24 -106.46 NSE Nifty 3606.60 4.25 USD Rs.48.01 Oil Nymex $90.06 B.Karthick Research Analyst. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
