Market to move down on Wednesday

Bhavesh Shah, Head Research, Asit C Mehta remarked that market opened strong after Monday`s huge fall on stronger global cues but could not sustain its gain on profit booking at every rise. Benchmark indices however managed to end firm but market breadth was negative throughout the day. There were 636 advanced and 3,171 shares showing decline (BSE + NSE) today.

Market sentiments look very weak after January Crash and very weak debut of Reliance Power on the bourses. In line performance of IIP data was also discounted. Capital goods sector showed some recovery from its intra day lows but was not spared in the last hour trade.

On the down side, 14,500 for Sensex looks a good Support level. I still advise investors to be selective and very specific in selecting a company before they invest, he said.

Rahul Dhedia, senior dealer, Networth Stock Broking commented that there is not much of activity in the markets. Today (February 12) market opened in green following the good global cues but due to selling pressure at every gain, it again shed all its gains to end in red. Most of the Reliance Group stocks witnessed selling pressure.

Sensex closed down 22 points at 16,608 while Nifty ended at 4,836, down by 18 points. He said no money is coming in the markets. No aggressive buying is being seen.

According to Rahul, double bottom is likely to be formed at around 15,300 level. From the current level, first support level is at 16,200. He expects markets to move down by 100 to 150 points in the next session.

One should watch out for stocks like Reliance Communications, Siemens, Zuari Agro and fertilizer, he said.

Vishwas Agarwal, Technical Analyst said that BSE 16,555 with nominal stop loss is favorable for trading purpose with an upside target of 16,999, 17350 and 17,555. The impact of Monday`s (Feb. 11, 2008) fall would be witnessed in the coming days.

He added that both investors and traders are trading cautiously after the recent fall. Moreover two negative factors viz. selling by FII and worse than expected IIP report caused negative sentiments in the market.

Vishwas expects some relief activity to happen in selective stocks and that would help the market to come out of depression.