Nifty may reach the level of 5,165 and then at 5,115. A close any previous day’s high may signal a trend change

Snapping its three-day losing streak the market closed higher amid choppy trade. Consumer durables, banking and realty stock led the market higher in late trade. Although the Nifty saw gains today, it made lower high. In spite of the falling volumes the selling pressures on the bourses may continue. We may see the index reaching the level of 5,165 and then to 5,115. However, if any day the benchmark closes above the previous day’s high we may see the trend reversing. The National Stock Exchange (NSE) saw a lower volume of 65.17 crore shares.

The market opened flat amid mixed cues from the Asian bourses on Chinese growth concerns. The Nifty opened unchanged at 5,257 and the Sensex rose 36 points to resume trade at 17,309. However, bargain hunting after the three-day decline saw the indices gaining momentum in early trade.

Investors engaged in bargain hunting after the three-day decline. The upmove resulted in the benchmarks hitting their intraday highs just the first hour. The Nifty touched 5,297 and the Sensex went up to 17,410 at their highs.

The market came off the highs and drifted lower on pressure in auto stocks. The indices were pushed into the negative in noon trade as selling became intense. The benchmarks fell to their day’s lows with the Nifty at 5,233 and the Sensex going back to 17,246.

An announcement that the government has approved State Bank of India’s (SBI) move to raise Rs7,900 crore through a preferential allotment, lifted the market in the post-noon session.

The market pared some of the gains amid a high degree of volatility but closed in the green, snapping its three-day losing streak. The Nifty gained 18 points to settle at 5,275 and the Sensex added 43 points to end the session at 17,316.

The advance-decline ratio on the NSE was 791:885.

The broader indices witnessed a mixed close, as the BSE Mid-cap index gained 0.56% while the BSE Small-cap index shed 0.03%.

With the exception of the BSE Auto index (down 1.50%), all other sectoral gauges settled higher. BSE Consumer Durables (up 2.35%); BSE Realty (up 1.44%); BSE Fast Moving Consumer Goods (up 1.04%); BSE Healthcare (up 1.01%) and BSE Bankex (up 0.85%) were the top gainers.

The Sensex toppers were Sun Pharma (up 2.69%); HDFC Bank (up 2.08%); Jindal Steel (up 1.51%); DLF (up 1.37%) and Cipla (up 1.30%). The main losers were Tata Motors (down 4.21%); Coal India (down 2.31%); Hindalco Industries (down 1.74%); Bajaj Auto (down 1.24%) and Bharti Airtel (down 0.71%).

The Nifty was led by Jaiprakash Associates (up 4.05%); Punjab National Bank (up 3.51%); Bharat Petroleum Corporation (up 2.91%); Sun Pharma (up 2.62%) and Jindal Steel (up 1.62%). The laggards on the index were Tata Motors (down 4.07%); Coal India (down 2.55%); Hindalco Ind (down 2.37%); HCL Technologies (down 1.99%) and Bajaj Auto (down 1.51%).

Markets in Asia settled mostly lower as reports came in that China has raised gasoline (petrol) and diesel prices by 6%-7%, the biggest increase in 33 months and the second hike in a little over five weeks. The move raised fresh concerns about the growth in the world’s fastest growing economy. Nervousness ahead of the talks between the Italian government and unions on reforms also weighed down investor sentiments.

The Shanghai Composite tanked 1.38%; the Hang Seng declined 1.08%; the Jakarta Composite slipped 0.06%; the Seoul Composite fell by 0.24% and the Taiwan Weighted dropped 0.89%. On the other hand, the KLSE Composite gained 0.26% and the Straits Times rose 0.42%. The Japanese market was closed for trade today. At the time of writing, the key European indices were down nearly 1% and the US stock futures were in the negative.

Back home, foreign institutional investors were net buyers of shares totalling Rs160.87 crore on Monday, whereas domestic institutional investors were net sellers of shares amounting to Rs295.98 crore.

State-owned BHEL today said it has bagged a Rs630 crore contract from a private power company, Abhijeet Projects, for setting up a thermal plant at Vishakhapatnam in Andhra Pradesh. The contract includes design, engineering, manufacture and commissioning of boilers, steam turbines and turbo-generators. The stock rose 0.81% to close at Rs262.25 on the NSE.

Tantia Constructions today said it has bagged a contract worth Rs31.40 crore from Kolkata-based South Eastern Railway for executing certain construction works on a section of Khana-Bowaichandi new line. The project work includes earth work in formation including blanketing, construction of minor bridges, level crossing, drains and other connected works. The stock tumbled 5.87% to settle at Rs42.50 on the NSE.

Engineering major Siemens today said it would seek shareholders’ nod next month for the merger of Siemens Power Engineering with itself. Under the share swap ratio for the proposed scheme of amalgamation, the shareholders will be offered six equity shares of a face value of Rs2 apiece of Siemens for every 13 equity shares of the face value of Rs10 per piece of Siemens Power Engineering. The stock advanced 0.37% to close at Rs777.75 on the NSE.