Nifty to head for 5190 if it closes below 5,250

The market settled lower on global growth concerns on the back of a clutch of dismal economic reports from across the world. We had mentioned in our closing report on Friday that the Nifty has to keep itself above 5,250 else the uptrend may break. The index today went below the level of 5,265 but settled a little above it. We may now see the Nifty head for 5190 if it closes below 5,250.The National Stock Exchange (NSE) saw a volume of 61.02 crore shares which was below its 10-day moving average.
 
The market opened in the negative tracking its weak Asian peers which were weighed down by the dismal jobs data from the US and higher-than-expected fall in Chinese inflation, which ignited fresh concerns about the pace of global economic growth. The Nifty dropped 83 points to open at 5,283 and the Sensex resumed trade at 17,450, down 71 points from its previous close.

Meanwhile, the rupee declined by 48 paise to 55.90 against the dollar in early trade today, extending losses for the fourth day in a row. Global uncertainties and a lower opening of the domestic stock market were seen as reasons for the fall. The rupee closed at 55.42 against the dollar in the previous session on Friday.

Buying in select stocks enabled the market hit its intraday high at around 10.30am. At the highs, the Nifty rose to 5,301 and the Sensex crawled up to 17,486, albeit still in the negative.

Profit booking at the highs saw the key indices moving further southward in subsequent trade. Selling pressure in rate sensitive sectors like metal, telecom, capital goods and power led the indices to their intraday low in noon trade. At this point, the Nifty fell to 5,258 and the Sensex went back to 17,344. A lower opening of the European markets added to the woes of domestic investors.

The market was range-bound in the post-noon session and closed in the red for the second day in succession. The Nifty declined 42 points (0.79%) to settle at 5,275 and the Sensex dropped 129 points (0.74%) to finish trade at 17,392.

The advance-decline ratio on the NSE was in favour of the decliners at 555:1222.

The broader indices underperformed the Sensex today, as the BSE Mid-cap index tanked 1.20% and the BSE Small-cap index dropped 1.06%.

Today's decline resulted in all sectoral indices settling lower. They were led by BSE Metal (down 1.55%); BSE Power (down 1.54%); BSE Capital Goods (down 1.25%); BSE Auto (down 1.12%) and BSE Realty (down 1.05%).

TCS (up 0.95%); Dr Reddy's Laboratories (up 0.82%) and Hindalco Industries (up 0.12%) were the only gainers on the Sensex today. The main losers were Hero MotoCorp (down 2.62%); Jindal Steel (down 2.56%); Tata Steel (down 2.32%); Bajaj Auto (down 2.30%) and Maruti Suzuki (down 2.28%).

The top two A Group gainers on the BSE were-Manappuram Finance (up 5.83%) and Engineers India (up 4.51%).
The top two A Group losers on the BSE were-JSW Energy (down 5.02%) and GMR Infrastructure (down 4.96%).

The top two B Group gainers on the BSE were-Goldstone Technologies (up 20%) and Quintegra Solutions (up 20%).
The top two B Group losers on the BSE were-Goenka Diamond & Jewels (down 19.95%) and SEL Manufacturing Company (down 19.94%).

The Nifty gainers were TCS, DLF (up 1.09% each); Dr Reddy's (up 0.29%) and Hindalco Ind (up 0.04%). The key losers were Reliance Infrastructure (down 3.56%); Jindal Steel (down 3.12%); Jaiprakash Associates (down 2.98%); Ranbaxy Laboratories (down 2.96%) and Tata Power (down 2.80%).

Markets in Asia closed lower on dismal economic outlook across the globe. Within the region, China's consumer price index rose 2.2% in June from a year earlier while producer prices fell 2.1% compared to analysts forecast for a 2% fall. Besides, core machinery orders in Japan fell 14.8% in May as manufacturers and service sector companies reduced orders.

The Shanghai Composite tumbled 2.37%; the Hang Seng dropped 1.88%; the Jakarta Composite declined 1.73%; the KLSE Composite shed 0.01%; the Nikkei 225 fell 1.37%; the Straits Times declined 1.66%; the KOSPI Composite lost 1.19% and the Taiwan Weighted settled 0.80% lower.

At the time of writing, the key European indices were down between 0.19% and 0.24% and the US stock futures were in the negative.

Back home, foreign institutional investors were net buyers of shares amounting to Rs571.77 crore on Friday while domestic institutional investors were net sellers of equities amounting to Rs223.47 crore.

Ruchi Soya Industries (RSIL) has signed a memorandum of understanding (MoU) with Thermax to set up a one megawatt fluidised bed biomass gasification plant. The gasification plant, to set up by Ruchi Soya at its Washim unit in Maharashtra, will be executed by Thermax on the technology acquired from the Energy Research Centre and Dahlman, Netherlands. The stock declined 1.23% to close at Rs88.55 on the NSE.

As part of its service footprint expansion in the country, auto component maker Bosch today introduced workshop concept in the two-wheeler segment here. Towards this end, the company has opened 10 (Express Bike Service (EBS) outlets in New Delhi on the lines of sole outlet at Delhi. The stock settled 1.50% lower at Rs8,795.05 on the NSE.

Indraprastha Gas raised the prices of compressed natural gas (CNG) by Rs2.90 per kg in the national capital and adjoining towns on the back of the fall in value of the rupee and rising cost of imported gas. The hike had been necessitated because the company is buying more of imported liquefied natural gas (LNG) after supplies from Reliance Industries' KG-D6 gas fields dried up. The stock which jumped 4.21% to Rs252.10 in intraday trade, settled 1.59% higher at Rs245.75 on the NSE.