Market sentiments look weak

Rohit Mehta, head equities, Dimpi Investments stated that overall weakness is there in the markets. Markets were down following the weak global cues. Selling was seen across the board. Sensex closed down 458 points at 17,617 while Nifty ended at 5,154 down by 126 points.

He expects markets to follow global markets on Thursday as well. Overall market sentiments look negative, added Rohit.

He is bullish on fertilizer and sugar sector on the back of some policy change in this upcoming budget. Stocks to be watched out are Nagarjuna Fertilizer and Bajaj Hindustan.

Rahul Dhedia, senior dealer, Networth Stock Broking said that markets traded weak following the weak Asian markets today (Feb 20). Volatility was there in the markets.

According to Rahul, Selling is being witnessed across the Asia and the likely impact is being seen in India. There is no major activity seen in the markets.

He expects the same trend to continue in the next trading session as well. He is bullish on Oil & Gas sector and stock to be watched out are Reliance Natural Resources (RNRL).

Suresh Kumar Iyer, Technical Analyst, Asit C Mehta said, ``The market started the day (Wednesday), taking cues from the weak global market and subsequently it started to become weak. Follow up selling, put further pressure on the market``.

He said, ``There is excessive supply in the market, which has made the situation worse. The discount was widened and at the same time volume has increased, which is a cause of concern``.

Giving the next levels of the markets, Suresh said, ``The Nifty is having support at 5,090 and 5,000, crossing this it may touch 4,927. The upside is limited to 5,194 - 5,298 - 5,375. The Nifty is expected to trade in a range of 5,000 - 5,400, in this expiry``.

Advising investors, Suresh said the investors, who do not want to take risk, should adopt wait and watch policy.

Vishwas Agarwal, Technical Analyst said, ``Market took reverse direction from 18,250 level to 17,500 in just two days, after gaining more than 10% from 16,555 to 18,250,`` adding, `` selling from FIIs, global market weakness and lower confidence among domestic investor are some of the important reason for the present weak market``.

He said, ``BSE is having support at 17,555, with a target of 17,777. Any major event in favour of the market can help the market`` .

Vishwas said, ``Global market strength will once again bring cheer in FIIs, only then they will stop selling. Untill such time, I advise the investors to be cautious, before taking any long position. One should adopt wait and watch policy``.

Foreign institutional investors (FIIs) turned net buyers in equities worth Rs 15,851 million (USD 392.90 million) on February 19. They bought equities worth Rs 37,883 million and sold equities worth Rs 22,032 million. Till February 19, they have been net buyers in equities worth Rs 45,472 million.

According to provision data available on NSE, FIIs turned net sellers in the equity segment worth Rs 2,664.4 million on both BSE and NSE on February 20. They bought equities worth Rs 28,766.7 million and sold equities worth Rs 31,431.1 million. Total turnover in cash segment of NSE stood at Rs 121,842.1 million on February 20.

FIIs were absent in debt segment on February 19. Till February 19, they have been net buyers in debt worth Rs 24,966 million.

FIIs remained net buyers in derivatives worth Rs 4,247.7 million on February 19. They bought derivatives worth Rs 39,617.4 million and sold derivatives worth Rs 35,369.7 million.