Markets stuck in a narrow range

Markets are stuck in a narrow range in the late morning deals. The Sensex is down 10 points at 17,211 and the S&P CNX Nifty is trading lower by a point at 5,233 levels. Since the morning the Sensex has moved in a range of 115 points.

According to Kunal Bothra, Technical Analyst with LKP Securities, "I think the crucial test for the market would be 5,150-5,170 zone. It is the zone where 200 DMA lies, also, a multiple support zone in the last 3-4 weeks. Overall at this point, I think it is time to be cautious and stock specific, however I would wait for a confirmation below 5,150 to go short on the index for a decent leg on downside."

The Asian markets are also giving subdued signals. The Nikkei has slipped 29 points or 0.3% to 9,517 levels, Hang Seng has shed 245 points to 20,347 and the Shanghai is down 23 points at 2,263 levels.

Back home, Gail India is the top loser among the Sensex stocks, down 3% to Rs 352 after the Petroleum and Natural Gas Regulatory Board (PNGRB) ordered IGL to cut the price of compressed natural gas (CNG) and piped natural gas (PNG) and to refund excess tariff charged. Tata Steel, ONGC, Sterlite Industries, HDFC Bank, Hindalco, Infosys, Hero MotoCorp, Coal India and Maruti Suzuki are also among the laggards.

On the other hand, HUL, Tata Power, ITC, Tata Motors, Wipro, Sun Pharma, SBI and Cipla are among the gainers on the benchmark index.

Oil & Gas sector stocks are amongst the worst hit in trades so far. The BSE Oil & Gas index has shed nearly 1% or 72 to 7,948 levels. Metal, PSU, IT, Bankex, Consumer Durables, power, capital goods and healthcare stocks are also facing a mild selling pressure. While, at the same time, FMCG, auto and realty stocks are witnessing some buying.

Among the individual stocks, Patni Computer Systems is trading higher by 3% at Rs 510 after the promoter iGate Corporation have accepted the discovered price of Rs 520 per share to de-list the information technology service firm from Indian stock exchanges.

Viceroy Hotels has frozen upper circuit of 5% at Rs 17.50 after Rakesh Jhunjhunwala, a high net worth individual investor have acquired 1.45 million equity shares representing 3.45% stake in the company through open market purchase.

Thomas Cook India has rallied 9% to Rs 69 in morning trades on reports that London-headquartered foreign exchange company Travelex had emerged as the leading bidder, offering a price between Rs 90 and Rs 95 a share.

The broader markets are also facing the heat of selling pressure. The BSE mid-cap index is up 32 points at 6,354 levels and the small-cap is down 15 points at 6,785.

Overall breadth is neutral as 1,133 stocks are declining while 1,085 stocks are advancing.