The markets yesterday ended in red mainly on account of heavy selling in telecom and select metal and energy stocks. The Sensex touched a high of 16,227 in early trades, but soon slipped into red and dropped to a low of 16,012 - down 215 points from the day's high. The index finally settled with a loss of 114 points at 16,038.
Bharti Airtel plunged over 9% and was the biggest loser among the index stocks. Reliance Communications, Sterlite and Tata Power were the other major losers. Hindalco, however, moved up nearly 2% yesterday.
Although the current downtrend is seen weakening for the last couple of trading days, still there is no conviction on the buy side. As mentioned in my weekly outlook, the 16,600 level holds the key for the short- medium-term trend. The daily short-term (20-days) moving average for the index is now at 16,465. One can expect more of stock specific action rather than broader markets.
Today, the index may seek support around 15,955-15,930-15,805, while face resistance around 16,120-16,145-16,170.
The NSE Nifty moved in a range of 62 points, and finally ended with a loss of 25 points at 4,802. The index is likely to seek support around 4,780-4,770-4,764, while face resistance around 4,825-4,833-4,840.