Markets would thus see another significant down day to close at lows for this rally segment either today or both today and tomorrow to close the week at 7800 levels on the Nifty and possibly even 26500 levels on the Sensex as Technicals confirm the weak sentiment of the last few days to fructify the shut down of trade at 16100 levels on the Banknifty as Banks continue to expect to lead the rally back and have not seen much uptick ahead of the fiscal half year mark next week.
At 8000 levels on the Nifty therefore, the sharp cuts today will likely not see much buying coming in and tomorrow too would be pretty harsh for the markets with the Rupee holding stronger levels in vain as far as equity markets are concerned
JP Associates continues down for the year on to 25 levels after a brief respite at 35 triggered apparently by bad news on the asset sale as the deal with Anil Ambani companies falls off a cliff. Meanwhile ICICI Bank has already cut out all positive gains from 1500 levels earlier and will continue to retrace from its rally highs as the market cross section looking for lower levels finally gets its act together and hopes to create new lower levels strong enough for sustained trading in the next 5-6 months as the recoevry news crystallises into specific sectors and movers. The week started with the Pharma companies getting into the cross sights of the market players after an unsuccessful fortnight trying to jump a big trade from the sector.
The culmination of the Coal saga affecting markets negatively is really a dud for most informed opinion in the markets considering the obviousness with which the allocations were apolitical yet, totally unproductive since the first allotment over a decade back, NTPC and Coal India still holding the key to the entire sector a known weakness we could not address in India.