Sensex slips to day’s low; auto, banks down

7 Aug 2009, ET Bureau

MUMBAI: Indian markets failed to pull back and slipped lower to day’s low in line with Asian markets. All the sectoral indices were in the red led
by losses in auto, banks and realty space. Investors were worried that the below average rainfall would hamper Indian economy. ( Watch )

Meanwhile, monsoon rains back home dipped for the second straight week at a crucial period for oilseeds and sugarcane, and raising concerns of rising food prices. Last week's rainfall, 64 percent blow normal, was the worst since mid-June, the India Meteorological Department said on Thursday. The government is worried that the weak monsoon will hamper growth making revival of the economy a daunting task.

At 11 am, Bombay Stock Exchange’s Sensex was at 15334.71, down 179.32 points or 1.16 per cent. The index touched an intra-day low of 15310.54 and high of 15501.94.

National Stock Exchange’s Nifty was at 4531.85, down 53.65 points or 1.17 per cent. The broader index hit a high of 4591.90 and low of 4520.65.

BSE Midcap Index was down 1.26 per cent and BSE Smallcap Index declined 0.92 per cent.

“The intermediate trend still remains up unless Nifty breaks below 4410 but going forward its very necessary that Nifty maintains above 4710 for a fresh development. We have seen for the last four trading sessions that Nifty has been trying to sustain above the 4700 mark but couldn’t manage even after positive move from the global peers. This clearly suggests that markets are waiting for a fresh trigger which could drive the Nifty above 4700.

Even FIIs have turned negative of Rs 690 crore in the cash segment on Wednesday. We are seeing that the trend is slightly getting weaker and we could take some more time to cross the 4700 mark and consolidate at lower level and create a base before giving a breakout on the higher side.

The 50-day moving average is placed at 4412 which should act as a strong support area. This intermediate trend will get in danger only if nifty breaks below 4380, till then every fall should be a buying opportunity keeping a strict stop-loss.
For tomorrow’s intraday trade 4550 should act as a strong support and a trade below could again create a panic selling and we could test 4495, resistance is at 4660,” said Nirmal Bang report.

Amongst the sectoral indices, BSE Auto Index was down 3.16 per cent, BSE Bankex declined 1.85 per cent and BSE Realty Index slipped 1.82 per cent.