The mixed cues from the economy front kept the investors on their toes. The markets cheered the strong GDP numbers but surge was contained by inflation worries. The Nifty closed at 4,870 up 35 points, while the Sensex shut shop at 16,416 up 99 points.
“The single drag on the Nifty has been Reliance Industries. This stock slowly and steadily has been gradually grinding downwards and right from around 2,700 it has been a slow and steady progress downward. Reliance is close to major support levels and is looking a little oversold. So, if the Nifty is to go up, Reliance has to get the lead and it would be amply supported by stocks like ITC which are already doing fairly well,” said E Matthew.
E Mathew, Director of Mathew Easow Fiscal Services is negative on DLF and Unitech.
Here’s how E Mathew views the stocks on board:
On SBI & Reliance:
The biggest drag on the Nifty has been State Bank of India, the banking pack and Reliance to some extent. SBI is now critically poised. Around Rs 1,410 to Rs 1,412 there seems to be reasonable support. But if that breaks, we could see further downside all the way to Rs 1,350-1,360.
It is imperative for the banking sector and State Bank of India to show some sort of bottoming out pattern or at least give some sort of a signal that it is trying to stem the fall so that the Nifty can stabilise. If the State Bank and the banking pack continues to fall like this, surely it would have a effect on the Nifty.
On DLF and Unitech:
If one looks at the charts of something like Unitech or DLF, there still seems to be some more downside.
Disclosure: It is sage to assume that my clients and I may have an interest in the stocks/sectors discussed.
Source: Moneycontrol.com
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