The week saw stocks tumbling without much support taking clues from global markets. The most disheartening part of this fall is the volumes with which markets fell. The week saw historically high volumes which is a major cause for concern. Both Sensex and Nifty lost 3% apiece. Technology, Metals, Auto, Pharma, Realty stocks were the major losers. Only 5 out of the 50 Nifty stocks ended the week in positive. Tata Motors, M&M, Tata Steel, Hindalco, HCL Tech and Sterlite were major Nifty losers.
Though the overnight announcement of US GDP quarterly numbers (up 5.7%) far above expected levels, it failed to enthuse the markets as the preceding rise already discounted the best. Back home Nifty closed below the crucial support level of 4940. Markets will find resistance near this level and continue to drift downwards. The correction is seen across asset classes worldwide whether it is commodities, equities or bullion. All indications point towards end of the easy liquidity regime, which was the major reason for the escalation in the prices of risky assets. And without much support from the fundamentals, markets may lose fair bit even with small selling. One should be a seller in the markets on weak counters. Stock specific action would still be visible. Indian Bank, Rolta, Bank of Baroda, Allahabad Bank, Triveni Engg are some of the stocks which still look good and buying may be contemplated at dips.
SELL
WIPRO @ CMP Tgt 620, 585 SL 672
IDEA @ 59-60 Tgt 52 SL 62
LT @ 1440-1450 Tgt 1400, 1360 SL 1470
STER @ CMP Tgt 700 SL 780
INDIAINFO @ 120-122 Tgt 100 SL 126
RELCAPITAL @ CMP Tgt 720 SL 830
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