Market may see further shortselling and profit-taking on Monday
K Seshadri
January 9: On Friday this column had pointed out that the Sensex is likely to fall to the level of 3555-3521. The index actually fell to a low of 3515 and closed at 3530. There has been steep fall in most of the scrips accompanied by high volumes. The velocity of the fall indeed was startling. In hindsight, it would appear that the market rise from the Sensex level of 3300 has indeed been by build up of speculative positions!The market behaviour seems to testify that operators have quickly liquidated their positions in the absence of FII support emerging, as also the fresh concerns on the rupee. With the bearish trend dominating, many scrips have the potential to go down further. If the Sensex continues to move down further, you should be looking at 3400, which has the attributes of being a reasonably strong support. In fact on technical basis the market may also try to find support earlier at 3458 level. In this column, we have been giving a close assessment and had indicated that the Sensex is
refusing to move up. We had also from time to time indicated that the balance was in favour of booking profit. Several factors have coalesced together on Friday to intensify the fall. It was the last day for the BSE settlement, the rupee concerns surfaced again and fresh disappointments surfaced about FII investments. These factors would not change over night. On Monday, one is likely to see some more profit taking and short selling by the aggressive operators. PTI adds: Share prices declined further on the National Stock Exchange (NSE) on Friday following increased selling pressure. The NSE-50 index started weak at 1057.65 and fell further to 1028.70, before closing at 1033.55, showing a notable fall of 24.20 over the last close of 1057.75. The Dollar NSE-50 (Defty), after a poor start at 923.05, dropped to 897.75 and settled at 901.05, revealing a sharp loss of 23.50 from the previous close of 924.55. The Midcap index also resumed subdued at 1199.70 and after touching a low of 1166.70, closed
at 1171.35, disclosing a steep fall of 28.60 from the last close of 1199.95. The market displayed a total turnover of Rs 1,869.11 crore from 701.48 lakh shares in 2,07,005 trades. Turnover from debentures were Rs 117.67 lakh. The most actively traded securities were ITC (Rs 752.14 cr), Tata Tea (Rs 301.47 cr), SBI(N (Rs 200.79 cr), and Reliance (Rs 122.56 cr).
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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