The bear prowls on : Update 05.05.11

The day added to the the continuous losing streak for a ninth straight session as concerns of high interest rate continue to put pressure on economic growth. Negative cues on the global front added to the woes.

Indices opened on a subdued note and remained rangebound for most part of the day. However, sharp selling activity emerged in the afternoon and took the indices below 200 DMA levels, which is a bearish sign.

** DMA[[Moving average data is used to create charts that show whether a stock's price is trending up or down. They can be used to track daily, weekly, or monthly patterns. Each new day's (or week's or month's) numbers are added to the average and the oldest numbers are dropped; thus, the average "moves" over time. In general, the shorter the time frame used, the more volatile the prices will appear, so, for example, 20 day moving average lines tend to move up and down more than 200 day moving average lines.]]

National Stock Exchange's Nifty ended at 5459.85, down 77.30 points or 1.40 per cent. The broader index touched a high of 5560.30 and low of 5443.65 in trade today.

Bombay Stock Exchange's Sensex was at 18210.58, down 258.78 points or 1.40 per cent. The 30-share index hit a high of 18569.21 and low of 18160.65 intraday.
BSE Midcap Index was down 0.95 per cent and BSE Smallcap Index moved 1.23 per cent lower.

Amongst the sectoral indices, BSE Realty Index was down 2.89 per cent, BSE Power Index declined 2.40 per cent and BSE FMCG Index slipped 1.82 per cent. BSE Oil&gas Index ended 0.01 per cent up.

Ranbaxy Laboratories (-6.33%), Reliance Communications (-5.67%), Punjab National Bank (-5.53%), Tata Power (-5.08%) and Reliance Power (-4.91%) were the top Nifty losers.

Ranbaxy Laboratories was witnessing selling pressure after reports that that the federal prosecutors in the U.S have been negotiating a criminal and civil settlement with Ranbaxy and this could lead to Ranbaxy having to pay the penalt of about $ 1 billion.

Hero Honda (5.96%), Kotak Bank (2.30%), Maruti (0.76%), GAIL (0.55%) and Reliance Industries (0.18%) were the only gainers.

Market breadth was negative on the BSE with 1861 losers against 901 gainers.

European markets were down on profit booking and the Wall Street is also likely to follow suit. At 5:10 pm IST; Dow Jones futures was down 0.35 per cent, S&P 500 declined 0.43 per cent and Nasdaq moved 0.39 per cent lower.