Markets pared some of their losses in the later half of the day after touching a low of 5,463. The Nifty recovered partially and is currently trading down 17 points at 5487 and the Sensex is lower by 56 points at 18,255.
The Nifty August futures are trading at a 5-points premium at 5492. Anand Rathi Research says markets will move in a broad range of 5400 and 5550 levels in the current series. Deven Choksey, Managing Director of KR Choksey Securities also says 'Nifty is trading in 100 points range of 5562-5455, and is not expected to go out of this tight range in a hurry.' Markets will gradually rise to scale new highs during this year, adds Choksey.
Weakness in the Asian indices weighed on the markets; Japan's Nikkei average hit a 16-month low and ended down 1.6% to 8,845 on dissapointmnet over lack of policy action by the goverment to curb the strengthening yen. Taiwan Weighted & Shanghai Composite indices were also down over 2% each. Hang Seng ended lower by 0.3%. The European indices, including the FTSE 100, DAX and CAC, are trading marginally lower by 0.1%. Strong earnings by Ageas (Belgium Insurance group) buoyed sentiment.
Realty index, down 2.3%, is leading the losses. The major losers from the realty space are Orbit Corporation, down 3.7%, Unitech has fallen by 2.9%; other prominent losers are DLF and Indiabulls Realty down over 2% each.Deepak Singh Tanwar, Technical Analyst from Sound Equity & Consulting says the position on DLF, and Indiabulls Realty is yet to turn negative, one should wait for some cosolidation to take fresh long position on these counters.
Tata Steel continues to remain top loser on Sensex, down 2.7%, Hindalco has fallen by 2% and Hero Honda has dropped 1.9%. On the other hand, Sterlite Industries from the metal pack is leading the gainers list on the Sensex and is up 0.9%; Infosys and TCS are up over 0.5% each.
Market breadth is negative, 869 stocks are advancing for 2065 declining stocks.