=>> Oct Series ended on the bad note

Oct Series ended on the bad note dragging the Index down by almost 4%. Heavy sell in the current week dragged down the Index by 4.4% in the Oct Series. Nifty fell down by almost 4.7%. Smallcap Index lost 3.7% and Midcap closed down marginally by 0.25%. Some of the major lossers were Unitech 25.5%, Idea 27.25%, Punj 22%, Aptech 33%, Relcap 20%. In the gainers list ITC gained 11%, HUL 8.5% and JSPL gained 9%.

Inflation turned higher. Inflation for the week ended 1.51% v/s 1.21% (wow) comparison.

RIL Q2 numbers are down. PAT came at Rs. 3852 CR vs Rs. 4122 Cr (YoY) on Higher Sales.

Yesterday Nifty too good support at the 61.8% retracement levels. Nifty had closed marginally below the 50DMA. Prior opening of the Indian markets, SGX Nifty was trading below 4800 levels down by 75 points. Global markets were too in deep red. US Markets continued shelling out their earlier gains made in the month of Oct. As mentioned in the article dated 1st OCt, that the month of Oct has not been good for the Equity markets and the absurd rally in the Indian markets has to be come to and end. Nifty had come down from 5182 levels to 4749 levels down by 433 points. In the chart we can see that the Nifty have taken good support at the trendline but the RSI is still trending downwards signaling more weakness in the near future. NIfty have also broken down from the Head and Shoulder pattern.

Nifty witnessed huge selling on the expiry day and the closed below 4750 levels. Volumes were high in the markets. F&O turnover again remained above Rs.1 Lac Cr and the total market turnover was Rs 1.43 Lac Cr. F&O counters had a huge rush for the short rollovers. Markets opened in red. Post lunch Bulls tried to cover the markets lost points but in the last 1/2 hour wewap selling, again dragged down the markets. Sensex which was trading down by just 50 points again tanked down in the last hour to almost 250 points, and finally shut its shop at 16052.72 down 231 points. Nifty may fall down to 4679 levels.

In my last article I had given short call on Rel Capital with price tgt of 740 & Maruti of 1431.