Flat Friday plays party pooper

The markets made an attempt to go up and the Sensex made a new closing high beating the one made on December 9 2013 but a poor Friday wrecked everything Global cues a weak Dow and a currency meltdown saw the Sensex surrender a large part of the four days of gains made The Sensex ended with a net gain of 6994 points or 033 per cent at 2113356 points The Nifty gained a tad at 510 points or 008 per cent to close at 626675 pointsA man checks share prices in Tokyo on Monday as Japanrsquos share prices fell 385083 points to close at 1500573 points at the Tokyo Stock Exchange following a selloff on Wall Street and as the dollar sank against the yen on concerns over emerging economies PicAFPThe broader indices like the BSE100 BSE200 and BSE500 lost 007 per cent 011 per cent and 013 per cent respectively The BSE MIDCAP lost 049 per cent while the BSE SMALLCAP lost 050 per cent The top gainer amongst sectoral indices was BSEIT up 143 per cent BSETECH gained 135 per cent The losers were led by BSE PSU down 157 per cent Other losers included BSEOILGAS down 147 per cent and BSE REALTY down 146 per centLoserIn individual stocks the biggest gainer was Wipro up 376 per cent Others included Axis Bank up 361 per cent and Hindalco up 229 per cent The losers were led by Axis Ranbaxy down 1720 per cent Others included REC down 687 per cent Coal India down 544 per cent and Union Bank down 492 per cent Ranbaxy has been hammered after the USFDA inspected and failed its fourth facility in IndiaOne really wonders what is going on in this company and one can understand that the erstwhile promoters may not have made some disclosures as is being talked but failing in inspection can be blamed only on the current management The share has been a big loser over the last two weeks and has lost over 27 per cent in valueWeakGlobal markets were weak and lost considerable ground during the last two days The Dow Jones Index has lost close to 500 points in the previous two days The Dow Jones lost 579 points or 359 per cent to close at 1587911 points FIIs were small buyers of equity of R 47354 crore while domestic institutions were sellers of R 553 crore The rupee weakened and lost R 112 or 182 per cent to close at Rs 6266This week will once again be driven by what the Reserve Bank does in its review meet todayFood and vegetable prices softened in December and this has helped inflation both consumer and wholesale to come down This reduction will ensure that there are no changes in interest rates in the coming policy but what would be important to note is the tone and tenor of the governor The US Federal Reserve Fed meets today and tomorrow and global markets will be awaiting further information on easing of the 85 billion bond buying which the Fed has been doingTradeThe current January series has seen markets trade in a fairly tight range of just about 220 points on the NIFTY Fridayrsquos level of 6266 is barely 13 points lower than the December close of 6279 points This series expires on Thursday January 30 and a lot would depend on what the RBI governor says Politics is keeping people on tenterhooks and the Delhi experiment of a new political order had many in the markets worried but slowly and steadily people are getting convinced a repeat of what happened in Delhi is unlikely on a national basisResultsThe markets are reasonably buoyant and retail interest is still to step up The easing of trading rules post modification of Periodic Call Auction PCA is happening but there are more sellers than buyers Results from the giant companies have been largely in line with no pleasant or unpleasant surprises Results will be crucial as we find more middle level companies declaring results What one finds from results declared is that treasury management of companies has improved which has helped them earn better profits while margins are under pressureBusyMarkets from today onwards would be determined by central bankers and Thursday would be expiry day In short we have enough on our plates to keep the market and players busy Key levels for the Sensex are 20850 and 21505 while they are 6155 and 6365 for the Nifty The support for the Sensex is at 21060 points then at 20953 points then at 20850 points then at 20625 points and finally at 20544 pointsIt has resistance at 21270 points then at 21361 points then at 21479 points then at 21565 points and finally at 21770 points The Nifty has support at 6243points then at 6221 points then at 6175 points then at 6135 and finally at 6109 points It has resistance at 6310 points then at 6333 points then at 6378 points then at 6415 points and finally at 6446 pointsArun Kejriwal is founder of the Mumbaibased advisory firm Kejriwal Research amp Investment Services Pvt Ltd Readers are invited to read more about these and other issues on his website httpak57inDisclaimer No financial information whatsoever published anywhere in this newspaper should be construed as an offer to buy or sell securities or as advice to do so in any way whatsoever All matter published here is for educational and information purposes only and under no circumstances should be used for actual trading or making investment decisions Readers must consult a qualified financial advisor prior to making any actual investment or trading decisions based on information published here Any reader taking decisions based on any information published here does so entirely at his or her risk