Skip to main content

Nifty futures test 5000 mark; Asian indices slide sharply by Venky Vembu May 7, 2012

By

Hong Kong: The blood has barely been wiped off the trading floors after last week’s tumbles on the Indian markets. But already, markets are off to another bloody start to the week.
Nifty futures are again sharply down in early trades on Monday, testing the 5000 mark on very weak global cues after election results in Greece and France over the weekend, and tepid US employment data on Friday, busted investor sentiment. (More details here.)
Listen to market audio:

All across the region, trading boards are awash in red. As at 7.30 am IST, most of the indices are down in excess of 2 percent. Tokyo, returning from a holiday, is down the hardest, playing catch-up with last week’s falls: it’s now down in excess of 2.5 percent. Hong Kong is down about 2 percent, and Sydney about 1.5 percent. Shanghai is faring the best of the lot, down only about 0.2 percent.
We’re probably looking at sharp losses when markets open in Mumbai today. Reuters
Nifty futures are down nearly 1.5 percent, and are just a notch above the 5000 mark. This likely means that the Indian market will open with sharp losses to add to Friday’s fall.
Back home, the debate on the Finance Bill gets going today, and investors will be looking for clues from Finance Minister Pranab Mukherjee that the retrospective taxation proposals he announced in the Budget will be rolled back. The taxation proposal in the Vodafone case, and other similar cases, has unnerved investors, already reeling from the effect of an economy that’s slowing down. There’s been some speculation that the penalty provision will be waived, although Vodafone might still have to pay back taxes, with interest thereon.
Whether that will be enough to sustain foreign investors’ interest in the Indian market will be on test, but the Nifty futures market is the relative outperformer this morning, which says something.
Even so, given that risk aversion runs high today – and the rupee’s slide of recent days has impacted returns – we’re probably looking at sharp losses when markets open in Mumbai today.

Comments

Post a Comment

Popular posts from this blog

SUPPORT AND RESISTENCE IN STOCK MARKET

By
In stock market , support and Resistance symbolizes key junctures where the forces of supply and demand meet.   Prices are driven by excessive supply (down) and demand (up).   Thus technical analysis is very much important in the wake of knowing buy/sell signal .   Supply is synonymous with bearish, bears and selling.   Demand is synonymous with bullish, bulls and buying.   These terms are used interchangeably throughout this and other articles.   As demand increase, prices advance and as supply increases, prices decline.   When supply and demand are equal, prices move sideways as bulls and bears slug it out for control. SUPPORT ? Support is the price level at which demand is thought to be strong enough to prevent the price from decline further.   The logic dictates that as the price declines towards support and gets cheaper, buyers become more inclined be it intraday or delivery.   The intraday trading software can make out a p...
Post a Comment
Read more

NIFTY AND STOCKS RESEARCH

By
Indian indices ended marginally higher at 5347.90, up by 27.50 points or 0.52%, market opened on the cautious note following the warnings from Fitch for a possible downgrade of India's credit rating and lack of positive cues from Asian peers. However, Market gained momentum in late trading hours after value buying in index heavy weights. Nifty has formed a big Bullish candle on daily charts closing almost at the high of the day, index holding its supporting trend line indicating that short term uptrend is still intact and Nifty finds buying support at lower levels. However, Nifty closed at tab below it major resistance zone of 5,360‐5,380. In the coming session, sustaining above the 5,380 mark will see follow up buying towards 5420‐5460. Failure to make headway above 5,360‐5,380 will see the index react lower towards the support placed around 5300. Trading strategy would be to Sell if market resist at 5,390 and Buy if support at 5,330. First resistance for the Nifty is 5,...
Post a Comment
Read more

FII FLOWS OF CAPITAL ON INDIAN STOCKS MARKET

By
New Delhi:   Overseas investors infused Rs 876 crore into Indian equity markets in the first week of May on hopes the government may review the General Anti Avoidance Rule (GAAR) provisions in coming days to address most of the concerns of FIIs, say experts. Foreign institutional investors (FIIs) had pulled out over Rs 1,100 crore from equity markets last month due to fears that proposed GAAR provisions could lead to heavy tax burden for investors putting money through tax-friendly places like Mauritius. During the current month, foreign fund houses poured in Rs 876.10 crore in the stock market and Rs 748.10 crore in the debt market Reuters FIIs made gross purchase of equities worth Rs 6,716.50 crore and sold shares valued Rs 5,840.40 crore translating into a net inflow of Rs 876.10 crore during May 2-4, according to the data available with the market regulator Sebi. Market experts said there is widespread expectations that government may review GAAR (General Anti...
Post a Comment
Read more