The stock market continues to be in a trading zone with no decisive movement in either direction. Values continue to erode due to the lack of support and tired bull liquidation.
With world markets not holding firm, local players are confused as to what posture to adopt since Indian bourses cannot avoid the spillover of the weak sentiment prevailing there.
At the same time, considering the cycle which the local bourses find themselves in and the technical indicators, a strong downward spiral is a remote possibility. All this is causing participants to adopt a low profile, and allow corporate events such as quarterly results.
As far as domestic markets are concerned, most of the bad news has already been factored in but the absence of a positive trigger is keeping the bourses from taking off. A discreet wait-and-watch policy is being followed by almost all players including big ticket traders and fund managers.
Satyam struggles
Satyam Computer struggled to hold onto the gains it has whipped up in the previous sessions but was unable to do so in spite of the buying of about a million share.
The Dutch brokerage picked up about half a million shares for its client, while King Kong picked around 4 lakh shares. The company is in the process of going ahead with its American depositary share (ADS) issue and this is evoking some interest in the stock.
However, the stock drifted downward along with the rest of the market. Whether quarterly results, which are due today, will change the stock's fortunes? -- one will have to wait and watch.
Infosys up
Infosys was among performers if the lesser decline in its value is anything to go by. There was quite a bit of churning at the counter with the emergence of both buying and selling by funds.
Yesterday Big Daddy was a seller at the counter to a small extent, while Uncle Jam also sold about 25,000 shares. In the previous session, while Jordan Flaming sold about 1.4 lakh shares, Cross Bee picked up about 50,000.
Numero Uno and Uncle Jam also picked up another 50,000 shares between them, which helped in preventing a sharp fall.
Back in favour
The Cipla counter is again being accumulated by value buyers after the stock got a bashing after an income tax raid at its premises. In hindsight, it is being felt that the action was overplayed and the drubbing the stock received was unjustified.
The Jordan Flaming brokerage picked up about 25,000 shares and Numero Uno another 50,000 in the previous trading session. Yesterday, about a lakh shares were picked up but the identity of the buyer could not be confirmed.
The Pioneering Fund was a seller to the extent of about 30,000 shares.
Another pharmaceutical counter which saw aggressive action was Dr Reddy's, where the Dutch brokerage picked up about 1,00,000 shares on behalf of its client.
Confused view
ICICI was sold to the extent of about one-and-a-half million shares by Uncle Jam in the previous trading session for the Mercurial Fund.
Whether the stock is not being favoured after its proposal to merge with ICICI Bank or if there is any other reason for the selling is still unclear though. Here too, the Pioneering Fund joined in by selling another 1.5 lakh shares, but Numero Uno was a small buyer to the extent of about 50,000 shares.
Tailpiece
Today will be a fairly eventful day with the second quarter results of Infosys and Satyam Computer scheduled to be announced.
The RBI governor is also due to announce the busy season credit policy. While the credit policy might be a non-issue for the market considering the current circumstances, the corporate results would be keenly watched.
The market is not hoping for any negative surprises as this could send it in a tailspin, something definitely avoidable at this juncture. A crucial day indeed.
