21st Aug 2011:

Nifty for the time since 2008 dropped down below 4800 levels. Sensex in its intraday movement dropped down below 16000 for the first time since 2010. Gold made its new high. Reliance Ind lost its position in market cap since it gained above the position after peeping ONGC. Coal India after its recent listing peeped RIL ind in the market capitalization.

There’s always a day after the darkness. Finally the bears got control of the market and some how managed to touch the Nifty at 4800 levels. Nifty had its very good support at 5200 levels from where it had bounced back several times in the past, but the panic selling could not help the Bulls to control the market. Finally we are at 4800 levels. Now what……

After all the downgrade in the near past, India has been on the down ward journey at par with the global markets. Last week we saw markets collapsed nearly 2.5%. Continuing its trend index lost another 6 % in the current week.

All the index closed down in red. Bankex lost nearly 9%. CNX IT lost more that 8%. Auto 4.7%, Reality 9%. Power index lost 5.3%. Oil and Gas 3.7%. Mid cap index tanked 7% while small cap Index lost 9%. Banks were hit harder then any other stocks on the brousers. Tata Motors lost 16.5%. Relcapital and Rcom closed down 16.5% & 14% respectively . Idfc closed down 13%. Ivrcl was one of the major looser from the lost which closed down 28%, Jet lost 23%. Educomp after the raid in its offices collapsed 23%. In the Tyre sector Apollo Tyre closed down 20% on week on week basis. Renuka lost 17% while HOEC 18%. In the Banking sector ICICI Bank lost 12%. Hindalco 12%. In the midcap and small cap sector, Clarus Finance after its superb rally lost 58% in a single week. Den Networks tanked 39% while KSoil lost 36%.

There were some gainers also in the way. Hero Honda gained 7%. Jubilant Foods gained 19%,VIP Ind 10% and Kwality Dairy 7%. Rm Mohite after its loosing steak from 200 odd levels to 60 levels, bounced back to 135 levels which gained nearly 23% in a week.

Chart 1 is the chart for Nifty. In the chart we can clearly see that the Nifty nose dive below 5200 levels. It somehow managed to close above the 4800 levels. Sensex closed marginally above 16000 levels. On Friday there was a gap down opening in the Nifty and in the chart we have seen a Doji kind of a pattern in the charts. It’s not exactly a Doji Pattern, but the candle stick suggests that the Indices can bounce back from a current rally as the candle stick was made after a wide gap. That the bounce back could be for a short run only. I am not sure about the fall below this level. Its seems that the markets are going bad to worse. Chart suggests that there could be no stopping in the markets. Investors are still advised to stay away from the mkt.