| Sensex, Nifty may try to move up again | | | Agencies
MUMBAI, Jan 14: But Nifty’s resistance at 6,300-6,315 is quite strong
On Monday, we pointed out that as long as the NSE Nifty manages to keep itself above 6,250 on Tuesday, the upmove may continue, although it may be a very short rally. On Tuesday, the Nifty spent most of the day below 6,250. There is still a chance that the index may rally towards 6,300-6,315. However, it may be a short rally that may stall soon.
The indices opened lower today, following a decline in the US markets Monday and major Asian markets today and continued to fall gradually through out the session. The BSE 30-share Sensex opened at 21,115 while the Nifty opened at 6,260. Soon after hitting the day’s high of 21,155 and 6,280 the indices started their downward journey.
The indices hit a low of 21,009 and 6,234 late in the session from where they recovered a bit. The Sensex closed at 21,033 (down 101 points or 0.48%) and the Nifty closed at 6,242 (down 31 points or 0.49%). Today’s fall was on a lower volume of 50.14 crore shares.
Among the other indices on the NSE, the top four gainers were Pharma (0.72%); Nifty Midcap 50 (0.31%); Midcap (0.04%) and Nifty Junior (0.02%) while the top five losers were Media (2.55%); Metal (1.57%); Realty (1.53%); PSE (0.89%) and Commodities (0.88%).
Of the 50 stocks on the Nifty, 14 ended in the green. The top five gainers were Cipla (2.05%); Lupin (1.86%); Cairn (1.82%); IndusInd Bank (1.67%); Dr Reddy (0.79%) and Infosys (0.73%). The top five losers were Tata Steel (3.03%); DLF (2.51%); NMDC (2.51%); Jindal Steel (2.34%) and Ranbaxy (2.14%).
Of the 1,505 companies on the NSE, 599 companies closed in the green, 825 closed in the red while 81 closed flat.
The rate of inflation based on the combined consumer price index (CPI) of urban and rural India slowed to 9.87% in December 2013, from 11.16% in November 2013, according to the data released by the government after trading hours on Monday. The moderation was largely driven by a fall in vegetable prices, which cooled nearly 19% from November on improved supplies.
That helped slow down annual food inflation to 12.16% last month from 14.72% in November.
The Reserve Bank of India on Monday said that it had eased rules for hedging foreign exchange exposures, allowing greater flexibility for cancelling and rebooking forward contracts. RBI is now allowing domestically-held forward contracts for all current as well as capital account transactions with a residual maturity of one year or less to be freely cancelled and taken out again, called rebooking. Before the changes, domestic exporters could cancel and rebook up to 50% of the contracts booked in a financial year for hedging their contracted export exposures. Importers were allowed to cancel and rebook up to 25% of contracts booked in a financial year.
These limits have been dropped. Foreign investors will be allowed to rebook 10% of the value of cancelled contracts, up from nothing previously.
US indices closed in the negative on Monday. The weakness persisted as a batch of weak earnings pre-announcements in the United States sparked concerns that the upcoming reporting season may disappoint.
Lawmakers in the United States staved off another possible shutdown by agreeing to series of measure to decide on US spending before the deadline. Lawmakers agreed to $1.1 trillion of spending that will run up to September 2014. This is part of the bi-partisan deal that the Republicans and Democrats agreed upon during the US Government shutdown, to agree to fund US spending subject to certain conditions. Earlier, the US shutdown majority of its government services as parties could not decide on spending levels to pay the bills.
Asian indices closed mostly in the red. Shanghai Composite the lone gainer was up 0.86%. Nikkei 225 was the top loser which fell 3.08%.
European indices were trading in the negative while US Future were trading marginally higher.
UK inflation unexpectedly slowed in December, reaching the Bank of England’s 2% target for the first time in more than four years. Consumer-price growth slowed from 2.1% in November, the Office for National Statistics said today in London.
In a separate report, the statistics office said factory-gate prices were unchanged in December from November and were up 1% compared with a year earlier. Input prices increased 0.1% on the month and fell 1.2% from a year earlier.
That’s the biggest annual decline since September 2012.
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