Udayan Mukherjee's Market View
The benchmark Nifty closed above the 5,500 level for the fourth consecutive session despite profit booking and weak global cues. The Sensex shed 98 points led by selling in metal, capital goods, technology, auto, realty, oil marketing and power companies' shares along with Reliance Industries, ONGC and ICICI Bank.
The Sensex closed at 18,311.59, down 97.76 points and the Nifty fell 38.40 points to settle at 5,505.10.
It was not a great day for the market. But you dont know what to make of it because today globally things were weak and we also gave up about a percentage point. But as long as the Nifty stays around this 5500 level I dont think we can read too much into these one day kind of falls.
Of course globally some trouble winds are blowing with the strengthening of the dollar index and the retracement of the commodity market and even Europe seems to have just weakened with all the talk of a Hungarian problem which is cropping up.
So it is not to say everything is hunky dory across the world but as long as flows continue the market might easily hold out in the face of global turbulence. So we've got to see what flows are like over the next few days. Today, we had a soft kind of day but for the next 100 points on the Nifty the trend will not be questioned.
If it does get deeper than that then we might run into some kind of rough weather. So today probably is best read as a one day fall. If tomorrow there is a follow-up then we will need to revisit the situation.
