It has been a rough week for the market but at least it closed on an optimistic note. Today's closing had nothing wrong about it. It was volatile through the trading day of course. Today, we didn’t have anything by way off global cues. The US was shut, Asia was sort off indeterminate, so we just tossed and turned around after a good opening. In the middle of the day when the news of the UP blasts came in, the market fell off very sharply into the red. It managed to recover from that and finally closed at a respective level given the circumstances.
It is up to about 18,800 on the Sensex and back to 5,600 on the Nifty. Yesterday’s low was below 5,400. We have managed to claw back more than 200-points from yesterday’s lows, which is not bad. The market was oversold, from that oversold ground we have got a pullback. Now, whether this is the market getting out of the woods or is it just a pullback? We will know next week but at least the closing has not been on a terrible level.
Week-on-week, the Sensex and Nifty are down about 5% a piece. This cannot be called a good week by any stretch. It has been a difficult week for largecaps and midcaps. Today, we saw bounces in stocks, which had sold off over the last three sessions. The breath was pretty good in midcaps and largecaps and the Midcap Index also did reasonably well today.
The power sector, which got hammered over the last one-week, has come back today. Reliance Energy lead it, NTPC is doing very well and so are power utilities led by Siemens, ABB, and L&T are all looking good. Even power ancillary and capital goods stocks are doing well.
The rupee is back to the 39.60, which is why Infosys has affected a small pullback. It has been drubbed continuously, but the first signs of buying may be emerging in Infosys, perhaps linked to the rupee. Unitech which got sold off along with DLF yesterday, have both affected a little bit off a come back today.
Bad week for oil marketing companies. They showed some early promise but then HPCL and BPCL have sold off once again. In the midcap space, power has bounced back be it Neyveli Lignite, which had a spectacular come back today, or PTC, they all looked pretty good.
Fertilisers had a good pullback as well led by Nagarjuna Fertiliser and Chambal Fertiliser. We had TTML, which bounced back. Essar Oil did extremely well today and many other stocks like Voltas and Welspun Gujarat also did well.
There were couple of listing as well. The one, which stood out today, was Barak Valley Cement. That had a reasonably good listing. Managed to holdout pretty well in a difficult or volatile market. Rathi Bars was not so spectacular. It listed around that issue price of Rs 35 and drifted around a bit, finally did not do too much. So, one good and one not so good listing from the market.
The market is interestingly poised. The jury is still out on whether this is just a pullback and will get sold in to a slightly higher levels or the market is slowly trying to form a base and is about to get out of the woods. Next week, is also F&O expiry. It promises to be an interesting cliffhanger and crucial decisive kind of week.
Source: Moneycontrol.com
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