Market Analysis: - 19th June 2008

The market opened lower today and fell further as the day advanced. It ended close to the day's lows. Sensex ended at 15,087, down 334 points from the previous close. Nifty shut shop at 4504, down 78 points. CNX Midcap index lost 1.9% and BSE Smallcap index, 1.5%. All sectoral indices ended lower, but that for realty, banks, capital goods and power were beaten up the most. Biggest losers on the Sensex included Ranbaxy, Reliance Infrastructure and BHEL, while gainers were Mahindra & Mahindra, Wipro and Cipla.

SKumars Nationwide will face resistance at Rs 120-121, says Prakash Gaba, technical analyst, on CNBC Awaaz. Keep a stoploss of Rs 110 here, he suggests. It is currently trading at Rs 116.55, up 1.5% on the BSE.  

European markets are trading lower and that seems to have pulled down the Indian markets a little more. Sensex is now at 15,096, down 326 points from the previous close. Nifty is below 4500 at 4498, down 83 points. Realty, banking, capital goods and power stocks are major laggards today.  

Sensex is currently trading at 15,137, down 284 points from the previous close. Nifty is at 4515, down 67 points. CNX Micap index is down 1.4% and BSE Smallcap index, down 1.1%. Market breadth is still very weak, with 278 advances against 924 declines on the NSE.  

FMCG can provide 20% returns from here, says JP Morgan, reports CNBC-TV18. The brokerage likes ITC and Titan in the sector. It also says Colgate is the best dividend yield playing stock in the sector.

JP Morgan has a target price of Rs 400 on Gitanjali Gems, reports CNBC-TV18. The stock is currently trading at Rs 283.15, down 0.7% on the BSE.  

A negative opening for the market is expected, says an NDTV Profit Opinion Poll. Nifty range is expected to be 4620-4500. Nifty close below 4480 would increase the weakness in the market. Stocks to watch are Western India Shipyard, Saregama and Marmagoa Steel.  

Banks seem to be high risk bets in the market now, so it is better to stay away from them, says Sudarshan Sukhani, technical analyst, on CNBC-TV18. ICICI Bank may find support at Rs 750, but below that, it has support only at Rs 500, he says. The stock is at Rs 785.35 on the BSE.  

Suzlon is in a bottoming out process and therefore is a buy at every dip now, says Sudarshan Sukhani, technical analyst, on CNBC Awaaz. The stock is at Rs 250 on the BSE.  

Ranbaxy is now close to its resistance levels of Rs 630-640, says Sudarshan Sukhani, technical analyst, on CNBC Awaaz. So it is better to book profits here, rather than invest now, he suggests. The stock is at Rs 598.20 on the BSE.  

The relief rally seen in the market for the last few days seems to be over now, says Sudarshan Sukhani, technical analyst, on CNBC Awaaz. Unless the Nifty crosses 4700, the trend will continue to remain down, he adds. And on the downside, if 4400 is broken, then there are no supports visible, he says. It is better to stay away from the market today, he suggests.