Search Now

Recommendations

Thursday, May 14, 2009

Markets in profit booking mode


Nervousness in the market is likely to continue after the Sensex reported losses in yesterday's trades. Weakness in the global indices could make the investors jittery from taking any fresh position. Among the key local indices, the Nifty could decline to 3600 or 3550 on the downside while on the upside there is a near term resistance at 3680. The Sensex has a likely support at 11850 and may face resistance at 12150.

US indices ended negative on Wednesday, with the Nasdaq and S&P 500 falling for a third straight session, after a weaker-than-expected retail sales report gave investors a reason to retreat. While the Dow Jones lost by 184 points to close at 8285, the Nasdaq ended 52 point lower at 1664.

All the Indian ADRs ended in the red on the US bourses except few. Rediff fell sharply and tumbled 12% followed by Tata Motors moved down 8.55% while ICICI Bank, HDFC Bank, Infosys, Satyam, Wipro, Dr Reddy and VSNL declined over 3-6% each. However, Patni Computers and MTNL clsed in positive territory with marginal gains.

The Nymex light crude oil for June delivery slipped by 34 cents to close at $57.68. In the commodity space, the Comex gold for June series gained $2 to settle at $925.90 a troy ounce.