Nifty Pre-Market Analysis, 30th August, 2010

The benchmark Sensex closed below the 18000 mark - important psychological level - for the first time since July 30, 2010. The index shed more than 200 points in the second half of trade, dragged by shares of financial, technology, realty, auto, capital goods and power companies.

Profit booking was the main reason behind today's fall and experts feel the markets may correct further as it has rallied recently upto 5550 level.

SECTORAL PERFORMANCE

• In the financial space, shares of India's largest banks - SBI and ICICI Bank plunged 2.7% each. HDFC Bank lost 2%; Axis Bank and PNB were down over 3%. HDFC and IDFC lost 1% each. TCS, Infosys and HCL Tech from technology pack tumbled 2.3-3.2%; Wipro lost 0.6%
• In the oil & gas space, heavyweight Reliance Industries was down 0.86% and Cairn India down 1.3%. ABB, L&T and Siemens from capital goods space lost 1.6-1.8%; BHEL declined 0.37%.
• Hero Honda from auto segment tumbled 3.86%; M&M, Tata Motors and Maruti Suzuki were down 0.7-1.6%. In power pack, Tata Power plunged over 3%; NTPC, Reliance Infrastructure, Power Grid and Suzlon Energy slipped 1-1.6%.
• ITC from FMCG space declined 1.7% and HUL was down 0.9%. In telecom pack, Bharti Airtel was down 1.4% and Idea Cellular down 0.3% while Reliance Communications gained 0.34%.
• In metal space, Jindal Steel lost 2.8% and SAIL declined 0.4% while Tata Steel was up 1.6% and Sterlite Industries up 0.23%.
• The BSE Realty Index was the biggest loser; down 2.7%. DLF was down 3.66% and Unitech down 3%. Financial and technology sectors were the leading losers; respective sectors fell 2% & 1.8%.
•  In the midcap space, FDC, Eicher Motors, Escorts, ILandFS Transformers and State Bank of Bikaner gained 2.4-8.5% while Jubilant Foodworks, J&K Bank, Great Offshore, Puravankara Projects and MVL declined 5.7-6.7%.

• The support for Nifty is at 5356 and 5387.
• The resistance for the up move is at 5450 and 5480.
• NIFTY has exhibited symmetrical triangle which is bullish breakout if the upper trend line is broken and it will be bearish breakout if the lower trend line is broken.

• The supports for Bank Nifty are 10700 and 10650.
• The resistance for Bank Nifty is at 10775 and 10850.
• Bank Nifty has exhibited an ascending triangle which is a bullish breakout pattern. But it dint sustained at that level so fall in prices is expected

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