Markets end choppy session in the red

Markets seesawed for the most part of the day and ended in the negative on back of weakness in FMCG and Banking stocks. After hitting a high of 20,560 and a low 20,383, The Sensex ended near day's low at 20,408, down 68 points and the Nifty also declined 14 points to close at 6145.

Asian markets ended on a weak note following a weak close on Wall Street after Federal Reserve signaled further purchases to the bolster the economy and earnings downgrades. The Taiwan Weighted and Seoul Composite ended down 0.6% and 0.2% each. Singapore's Straits Times closed down 0.1%, Hong Kong's Hang Seng also ended lower by 0.2% on account of profit booking in property shares.  

Japan's markets bucked the trend, the Nikkei Average gave a thumbs up to the rate cut by Bank of Japan, closed up 1.5% at 9,518. Bank of Japan voted to cut the overnight call rate between zero to 0.1%, from 0.1% previously and also ensured further monetary easing.

European markets were also trading higher led by rally in retailers after strong earnings from Tesco PLC. However Euro-zone September composite Purchase Manager Index which slipped to 7 month low weighed on the markets. FTSE 100 index rose 0.5%, DAX 30 index was up 0.3% and French CAC-40 was up 0.6%.  

Technical Analyst Devangshu Datta said that Nifty will probably trade in the range of 6150-6200. Kishor Ostwal, CMD, CNI Research expects Nifty to correct by 5-7% before scaling to new high of 7300. "The next stage has commenced and doors are opened for new target of 7300 to 7800 for Nifty when markets crossed 5600, wave V of the rally has begun," Ostwal Said.

BSE Banking and FMCG indices weighed on the markets, down 5% and 1% each. Among FMCG stocks, United Spirits shed 2.4% at Rs 1,629. Nestle India and Dabur dropped over 1.5% each in trades. Colgate Palmolive was down 1% at Rs 881.

BSE Consumer Durables index was the top gainer, up 1.4% to 6,529. "There is still some upside left in consumer durables stocks like VIP INdustries, Wim Plast and Supreme Industries," Oswal Said.

Bajaj Electricals from teh consumer durables pack surged over 5% to Rs 317. VIP Industries and Rajesh Exports gained 3.6% each at Rs 777 and Rs 108, respectively. Videocon Industries and Whirlpool were up.

ADAG group stocks shone on the market today. Reliance Communications and Reliance Infrastructure gained over 3% at Rs 178 and Rs 1,115, respectively.

Jaiprakash Associates added 2.3% to Rs 130. ACC was up 1.7% at Rs 1,030.

Mahindra & Mahindra, Maruti Suzuki were among the auto winners. Jindal Steel, Tata Power, BHEL and Reliance also advanced in trades.

However, HDFC dropped 2.3% to Rs 741. HDFC Bank, Hindustan Unilever and Bharti Airtel shed around 1.5% each.

Hindalco, ITC, ICICI Bank, Wipro and Sterlite were among the losers.

BSE market breadth was positive. Out of 3,104 stocks traded, 1,672 advanced while 1,290 declined.

Reliance topped the value chart with a turnover of Rs 112.26 cr, followed by Reliance Capital, SBI, Pipavav Shipyard and Tata Steel.