DAILY MARKET UPDATE
Dated: 22nd February 2012
Investors and traders in the Indian equity markets took some profits off the table. Nifty was down 1.8% or close to 105 points for the day.
Today’s selling doesn’t come as a surprise because the market had sharply risen in the last one and half month and was due for some profit booking. It is just that the sell-off was also as sharp as the rise.
Banks witnessed major selling pressure with the heavy weights such as SBI, Axis bank falling 9.5% and 6% respectively. Metals names such as Sterlite and Hindalco too were down around 5-6%.
Defensive such as FMCG, Pharma held their ground against the selling pressure and traded positive for the day. Similarly, IT companies such as TCS and Infy too traded positive. Whether this positive performance of IT is an early indicator of rise in dollar rates or not, only time will tell.
Going forward, 5660 remains a crucial resistance for Nifty and on the downside, 5365 remains a support.
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