Tuesday, February 12, 2008

Market. sentiments negative after Reliance Power`s dismal listing

The 30-share benchmark index, Sensex opened negative at 17,427.34 in the early trades today (Feb. 11). The index crashed at noon by nearly 1,000 points on panic selling by funds and retail investors sparked by weakening global stock markets.

The index proceeded to trade weak throughout the day. Heavy selling in mid-noon trades led the index plunge to a low of 16,457.74 from the previous close. Finally, it wrapped the day on a dull note.

BSE Sensex plunged 833.98 points, or 4.78%, at 16,630.91, while the broad-based NSE Nifty closed at 4,857, down 263 points, or 5.14%.

Vishwas Agarwal, Technical Analyst said that investors were disappointed on Reliance Power`s dismal listing. Consequent to the poor listing of RPower, all stocks in the power sector fell drastically.

He added that the market has broken the 200 days moving average and that this is not a very positive signal. Market sentiments are negative as investors have lost money in last 25 days.

Vishwas said that continuous FII selling, global market weakness kept the market in heavy pressure. He advised investors to stay away from the market.

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