Thursday 29 March 2012

Nifty may slip to 5000, warn experts

The Indian market has been on a weak wicket over the last few days. Yesterday, the Nifty lost 48 points and closed at 5,194, while the Sensex slipped 135 points and ended at 17,121.62.
Today is the last day of the long drawn out March series. Futures and options contracts will expire today. It hasn't been a good series for the market. It appears the series is not ending well. The Nifty, till date, has lost 5% in the March series.
CNBC-TV18's managing editor Udayan Mukherjee says, the environment has worsened since the start of this March series. "The 5% drop in the series is due to a lot of macro cues as well as fundamental newsflow," he explains.
The Nifty broke its 200-day moving average (DMA), 5,151, in the early trade. Experts were keenly watching this level. They believe that the market might now even slip to 5,000.
Ambareesh Baliga, COO of Way2Wealth says, breaking of the 200-DMA will lead to short selling and will take the Nifty to the levels of about 5,000-5,050. He says, one should start buying at these levels. "One should think of buying because most of the negatives like GAAR, political issues are already priced in. The April results expectations are not too high. On the positive side, for the first time, we are seeing some pressure on oil," he elaborates.

According to Udayan, traders will be watching the 200-DMA level. "All attempts will be made by the index to see it stay and close above 5,200. If the F&O expiry is weak then the index could break below this mark," he warns.
Meanwhile, Sudarshan Sukhani, s2analytics.com suggests investors to avoid trading today. "There is a lot of volatility and it's almost completely unpredictable. Sometimes volatility is predictable. But on F&O expiry a lot of the stuff is unpredictable. So, those who have short positions should keep them, but beyond that today is a no trading day," he asserts.
Generally, the last day of any F&O expiry is characterised with volatility. Also, the global cues are quite weak today. So, investors are advised to exercise some caution. 

http://www.moneycontrol.com/sensex/bse/sensex-live

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