Panic selling likely to continue on Friday

Rahul Dhedia, senior dealer, Networth Stock Broking said that heavy selling was seen in the market today (February 07). Sensex closed down 612 points at 17,526 while ended at 5133 down by 189 points.

There was major activity seen by FIIs as most of the global markets were closed today. There were rumors in the markets that some of the Reliance offices have been raided and also big bulls taking short positions due to which panic selling was seen in the markets. Selling was also seen by Citi bank

Most of the Reliance Group counters were down. Big brokerage houses on the back of non-receipt of payments also participated in panic selling. All these factors added to the negative sentiments of the markets.

According to Rahul, panic selling is likely to continue on Friday. Stability will come in the market from next week. Market support is at 17,000 level.

Stocks to be watched out are PNB Gilt, ICICI Bank and fertilizer counters.

Anuj Anandwala, analyst, KJMC Capital Services said that markets traded flat in the beginning but slipped down sharply after mid session. Metal, IT, realty and fertilizers stocks were among the major losers. Volumes remained weak and market breadth was also negative.

He expects a weak opening session on Friday as most of the Asian markets are closed. Market will also continue to track global peers, added Anuj.