No prizes for guessing which market is the worst performer in the Asian region.We had an extremely volatile session in the morning and then after the European markets were opened, the markets were uni directional.No respect to the supports.A free fall from 5030 levels.And we finally closed at 4934 down by almost 2 %. Front line stocks like Reliance Industries,Grasim,Dr.Reddy,Maruti were hammered down.Just 4 trading days in the week and we are down by more than 4 %. I would attribute the trigger to yesterday's fall to Spanish Bond yields.But the magnitude of the fall was very huge compared to the fall in European indices. And the surprising numbers of UK retail sales had gone unnoticed by the bears.Other Asian markets ended almost flat.
Alex sir feels that, technically markets are in a over sold territory but there is no optimism due to the lack of positive news from the domestic as well the international front.In the short term Nifty is weak and may further test lower levels.In the Options front the Nifty Put call ratio is around 0.9 and it indicates a weak outlook.A move below 4900 would trigger further sell-off in the indices.Since January 2011 FIIs have pulled out around 3300 Crores from the Equity market.
Dow Jones closed in the red by more than a percentage and Nasdaq was down by more than 2 %. All the asian indices are trading in the negative territory indicating a weak opening for our markets.
FTSE futures is trading down by 48 points at 8 AM IST
DOW futures is trading almost flat at 8 AM IST.
SGX Nifty futures is trading at 4884 at 8 AM IST.
