Further Weakness!!

Markets witnessed selling pressure across the board. Although they opened with a modest gain, the gains could not be held and they slipped within half an hour of trade. The Sensex was down 149.52 points or 1.04% at 14253.38, while the Nifty was down 57.60 points or 1.38% at 4106.95. The Midcap Index ended down 1.23% or 73 points at 5,877.90 and Smallcap Index closed in red at 7,214.73 down 102.20 points or 1.40%. Market breadth was negative. NSE cash turnover was at Rs 7792.17 crores.

Most of the sectoral indices ended in the red. The BSE Auto index was down 84 points or 1.5% at 5,537.42 as Hind Motors, Punj Tractors, Cummins, Ashok Leyland and Apollo Tyres were top losers. The BSE Capital Goods was down 142.69 points or 1.48% at 9,503.10 as Alstom Projects, Aban Offshore, Crompton Greave, ABB and Bharat Elec were the hardest hit stocks. The Bankex plummeted 102.86 points or 1.41% at 7,186.24 and the BSE FMCG index ended down 10 points at 1,880.83. The Bse Healthcare, BSE IT, Metal and Oil and Gas indices also ended in the red.

The markets are showing signs of tiredness as they are unable to hold on to the gains seen in the last three sessions. We recommend a cautious and go slow approach with respect to fresh long positions. It is important that the supports at 14,060/4050 hold, else we could see further weakness.