Markets open in the red on back of mixed Asian cues and few heavyweights leading the decline. The Sensex dips 68 points to 20,099 and Nifty sheds 16 points to 6056.
After a negative closing last week, technical charts indicate that volatility will continue. Ravi Nathani, technical analyst said, "markets will
be highly volatile as intermediate trend is down, however in the short term, trend would be bearish only if index closes below 5930." Investors could hunt for opportunities to buy on dips and traders could place the long position with stoploss below 5930, Nathani added. Prakash Gaba, also a technical analyst said, “the market is weak and very close to the psychological support of 6000, would not be surprised if a bounce comes in."
Asian markets clawed of the lows plumbed on Friday on concerns of expected rate hike in China's over-heating economy. Japanese shares also saw some respite after it reported growth in the third quarter, gross domestic product rose more-than-expected (up 0.9%) beating economists forecast. The Nikkei 225 index surged 0.7%. Hong Kong shares were seesawing due to volatility in mainland Chinese shares, and property stocks leading the gains. China's Shanghai Composite continued its losing streak, the index dropped 0.9%. Strait Times and Taiwan Weighted were trading marginally in the red, and Seoul Composite was up 0.1%.
Among the stocks on the Sensex. Tata Steel surged 1.6% on brokerage upgrade, JP Morgan raised the target price to Rs 665 from Rs 605. ICICI Bank was up 1.3% and Bharti Airtel rose 0.9%.
Reliance Communication dipped 1.6% after it reported a 40% drop in the second quarter net profit, other losers were Jaiprakash Associates (down 1.9%) and Jindal Steel (down 1.8%).
