Markets: Remain Bearish

The Markets had yet another turbulent day where the indeces went up and down with huge amount of buying and selling. After yesterdays recovery everone was expecting furthur upswing in the markets. Today the Benchmark BSE Sensex closed 249.63 points lower at 10,573 (-2.31%) and the NSE closed at 3,115.53 with 83.80 point (2.62%) decline. The advance decline ratio at the NSE was 437 advances and 471 declines.

Automobile shares like Mahindra& Mahindra and Maruti decline by 6% and 5.1% to 557.

Steel manufacturers like Tata Steel and SAIL declined by 5.6% and 3.8% to Rs. 483 and Rs. 74.

Other big losers in todays market were heavyweights like ONGC (5.89%) and RIL (3.5%). ONGC closed the day at Rs. 1,164.

Textile stocks also declined with Century Textiles and Bombay Dyieng falling by 6% to Rs. 405 and Rs. 704.

The market sentiments seem deeply shaken after the volatility and breadth of fall seen today. Tomorrow we may see even more action because of the settlement day. We may see more margin preassures like we saw on Monday which could take the markets lower. Makny FII who entered the markets at 9,000 - 10,000 level could be seeing their stocks touch the stop loss mark.

Selling preassure is likely to continue which will test nerves of investors for many days. As I have mentioned before the investors must remain calm and look ahead for long term gains.