The benchmark Sensex closed below the important psychological level of 18,000 for the first time since July 30, 2010. The index shed more than 200 points in the second half of trade, dragged by shares of financial, technology, realty, auto, capital goods and power companies.
The 30-share BSE Sensex closed at 17,998.41, down 227.94 points or 1.25% and the 50-share NSE Nifty fell 69.20 points or 1.26% to settle at 5,408.70, after witnessing an intraday low of 5,391.95. For the week, indices lost 2.2% each.
-
Mitesh Thacker of miteshthacker.com, who had been watching 5,450-5,455 very closely, says, “Since the markets bottomed out in the last week of May and started a rally from 4,900, every correction on the Nifty has failed to close below 21-day exponential average."
"We have had three-four corrective movements where the Nifty has fallen about 100 points from the top, but every time it’s managed to close above that and then has made a new high. The Nifty has closed below that level. This is the first sign of proper weakness and a corrective kind of movement coming into the Nifty. Probably, the one important level, which we saw couple of weeks back was on the downside, 5,360- 5,350. So maybe we are heading towards that and if you break that may be even lower.”
Dipan Mehta, Member of the BSE and NSE also feels that the market is in a correction mode. “But this is more like a normal technical kind of correction. I don’t expect that is going to add up to anything significant. I think that maybe this month we could see the losses deepening as compared to what we have seen over the past two-three trading sessions.”
