Market Summary of the day : 07/05/2014

 Indian markets after two days of mild upmove, succumbed to profit booking on Wednesday and the Nifty slipped to its 6 week low. Though, the start was comparatively good and bourses bucking the negative global cues moved higher, but at the high point of the day profit booking started and gradually took the markets into red, afterwards there was hardly any serious attempt of recovery.  Traders apart from the global worries, remained concerned about the growing uncertainty about the election results, as the poll entered the second last eighth phase. 

The global cues remained sluggish, adding pressure to the movement of the local markets on the lower side; while the US markets ended lower on Ukraine concern, the Asian markets followed the suite with some of the indices suffering sharp cuts after China’s services industry expanded at a slower pace in April and Japanese yen strengthened against dollar. Further the European markets too made a gap down start and weighed on the sentiments of the local markets. 

Markets that have been trading cautiously for last couple of days witnessed profit booking, and while the volume again remained low, the drag in IT and technology stocks led the markets lower. Paris-based think-tank, Organisation for Economic Cooperation and Development (OECD) in its estimates for 2014 said that India's economic growth is poised to inch up 4.9 percent in 2014 and is expected to gain momentum with a decline in “political uncertainty” after the general elections 

On the BSE Sectoral front, Consumer Durables up by 0.77% and Power up by 0.20% were the only gainers, while IT down by 2.59%, Teck down by 2.23%, Realty down by 1.11%, Metal down by 0.71% and Auto down by 0.70% were the top losers in the space. 

The top gainers on the Sensex were NTPC SBI, Sun Pharma Axis Bank and Hindustan While Infosys , HDFC Hindalco Inds, Cipla and Gail India were the top losers in the index. 

Technical parameters of Nifty: 

 

RSI was at 46 MACD positive below signal line; India VIX was at 34~ which all Indicate that market are in down trend for immediate short term. Today, Nifty closed below its 5DMA (6691), 20 DMA (6743) but above ,50 DMA (6566) 200 DMA (6144) which all indicate that market may see some downside in the near future.