Selling pressure continues, metals weigh

Markets are expected to fall further in the last leg of trade on back of weak opening in the Europe and selling pressure in metal
and consumer durable shares. The Sensex has fallen 252 points to 19,682 and the Nifty has declined 75 points to 5900.

Markets are expected to remain weak with Nifty seeing stiff resistance around 6100 level. Monal Desai, VP & Head–Inst Equities (Derivatives), Prabhudas Lilladher said "there is not enough enthusiasm to buy aggressively; hence upside is capped around the 6100 level. Technical analyst, Devangshu Dutta said, "the Nifty looks Weak and could drop to 5850 or 5825 as 5900 is broken. Investors should start shorting and trade with a stop loss at 5925."

Asian markets also ended on a weak note due to the market wobble in Seoul following reports that North Korea might attack another
South Koran Island which was later reported as a drill. South Korea's Seoul Composite ended down 0.4%, China's Shanghia Composite dropped 1%, Hong Kong's Heng Seng ended down 1.4%. Japan's Nikkei Stock Average was up 0.9% and Straight Times was up 0.3%. European markets also opened lower due to losses in financial and mining shares.

Rally in Oil & Gas sector has lost steam after rising sharply on reports that government may raise fuel prices by Rs 2 per litre
after crude surpassed $90/bbl yesterday. Indian Oil Corp (IOC.BO) was up 2.7 percent, Hindustan Petroleum Corporation has risen
3.5%, Bharat Petroleum Corporation has risen 2.5% and Indian Oil Corporation has surged 1.6%.

Whiles most of the sectors are under selling pressure today, fund houses are bullish on India's consumption theme. Rajiv Anand,
Managing Director & CEO, Axis Mutual Fund said, 'like domestic consumption as a theme as we think it is a secular play in India. Also believe that financial service will  remain the core part of our portfolios, but are circumspect of global cyclical like commodities and oil and gas."

Bank Nifty dipped to three month low, down 2%. Canara Bank, Axis Bank and Union Bank were down by almost 5%.

Consumer Durables has been the top sectoral loser; Gitanjali Gems has fallen 5.5%, Bajaj Electricals has dropped 4% and Rajesh Exports has declined 3.2%.

Metal stocks have lost sheen, Welspun Corporation has lost 4.9%, Jindal Saw has plunged 3.7% and SAIL has slumped 2.8%.

On the Sensex HDFC Bank (down 3.3%), Reliance Communication (down 3%) and Tata Stell (down 2.7%) have been the top losers. Only one component on the Sensex has been trading in the green, ONGC (up 0.7%).

Broader markets have also witnessed selling pressure, midcap and small index has declined 1.8% and 2.7% each.