The Indian markets witnessed profit booking on the first day of this week as the Sensex ended higher for the fourth straight week this year, up three per cent at 17,234. The BSE Sensex opened at 17,063, down 171 points and the Nifty opened at 5,151, down 54 points.
In the near term, the markets may now turn choppy, given the near overhead resistance and overbought conditions on the daily charts, analysts suggest.
Asian shares inched lower and the euro eased on Monday, as markets cautiously tuned in to a likely debt swap deal for Greece that is crucial to avoiding a messy default and eyed another European summit meeting. Uninspired gross domestic product figures from the United States.
MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.2 per cent after hitting its highest since late October earlier.
Back home, technical analysts suggest that the Nifty could face resistance around 5,280 – 5,325 levels, while it may find support around 5,130 – 5,080 levels.
All the sectoral indices are in the red except for BSE FMCG index. The index is trading marginally higher at 4,076.
BSE Capital Goods, Realty, Metal and Bankex indices are in the red, having shed 1-3% each.
BHEL, Suzlon Energy, L&T and Punj Lloyd, 2-9% each, are the prominent losers from the Capital Goods space. BHEL has tanked 9% at Rs 249 after reporting a 7% year-on-year (y-o-y) drop in order inflows at Rs 146,500 crore at the end of December 2011 quarter. The state-owned heavy electrical equipment makers had a order book position of Rs 158,000 crore as on December 2010.
Sterlite Industries, Steel Authority of India, Tata Steel and Hindalco Industries, down 2-3% each, are the notable losers from among the metal stocks.
Among the financials, Axis Bank, Bank of India, Yes Bank and Federal Bank, down 2% each, are the top losers.
BHEL, Sterlite Industries, Larsen & Toubro, Hindalco Industries and DLF, down 2-8% each, are the notable losers on the Sensex. The gainers from the pack are GAIL (India), Bajaj Auto and ITC, up nearly 1% each. Sun Pharma Industries and Wipro are maginally higher.
The overall market breadth is negative as 622 stocks have declined against 575 advancing ones, on the BSE.