Markets opened on negatve note led by weak global cues. Nifty broke 200 Daily Moving Average (DMA) yesterday indicating a bearish trend on the technical charts. The Nifty fell 32 points, 5572 and the Sensex dipped 84 points, 18,601.
Edelweiss in the morning note said, "Nifty’s close below the 200-Simple Daily Moving Average has triggered a sell signal, however owing to the near oversold conditions, the index is expected to drop down to the 5550 multiple swing support as well as the declining channel support."
Markets in Asia fell after weak cues from Wall Street. Dow Jones Industrial Average was once again within a hair of a return to 12,000 mark as mixed economic data and corporate earnings weighed.
Japan's Nikkei Stock Average sinked 0.9%, to 10,382 dragged by weakness in banking after Standard & Poor's downgraded Japan's sovereign debt, technology shares also weighed. Hong Kong's Heng Seng retreated to 23,627 as energy and metal shares dipped. China's Shanghai Composite slipped 0.3%, at 2,870.
BSE Realty and Capital Goods indices were leading the losses in the opening trades. Realty shares were on a shaky ground, HDIL dipped 4.1%, Indiabulls Real Estate declined 3.6% and Sobha Developers edged lower by 3%. From Capital goods space, BGR Energy fell 3.2%, Siemens plunged 3.1% and Alstom Projects declined 2.3%.
Among individual stocks Suzlon was up 1% in the opening trades on reports that the company has signed 1000 mega watt partnership agreement with caparo energy India. HDFC Bank also zoomed 1% after India's third largest lender reported 33% rise in net profit on back of rise in loan demands and higher fee income.
Jaiprakash Associates dipped 1.9%, and Oil & Natural Gas Corporation advanced 1% in opening trades ahead of third quarter results.
Top losers on the Sensex were Mahindra & Mahindra, down 3.1%, BHEL fell 2.7% and DLF was off 2.4%. Only five components on the Sensex were trading in the green, Infosys was up 0.9%, Bharti Airtel advanced 0.8% and ITC surged 1.1%.
From the broader markets, the midcap and smallcap indices were down 1.3% and 0.9% each.