Thursday, February 19, 2009

Market Report 19-02-09

Markets remain flat

It was another range bound session for the markets as Fund flows were muted at FIIs desk while the domestic participation was very low. The Nifty remained below 2800 for major part of the day while the Sensex was hovering around the 9000 mark.

The Sensex finally closed 27.45pts or 0.30% higher at 9,042.63. The Nifty gained 13.2pts or 0.48% to close at 2789.35. The broad market indices ended lower as the BSE Midcap and Small Cap indices were down by 0.21% and 0.37% respectively. Market breadth was negative as A/D ratio was 0.83:1 on the BSE.

The sectoral indices were mixed. The top gainers were the BSE IT, Consumer Durables and Auto indices. The top losers were the BSE Capital goods, Realty, Bankex and Metal indices. The top gainers from the BSE-30 were Wipro, Infosys, Grasim and Maruti. The top losers were Hindalco, ACC, ICICI Bank and L&T.

Although the main indices continue to remain above their trend reversal levels of 9000/2750, we recommend a cautious approach as traders need to watch whether the Dow Jones is able to remain above 7500. In case the Dow Jones breaks this level, expect a sharp fall in Indian markets. We continue with our cautious and wait and watch approach with respect to fresh long positions.

Source : HDFC Securities