Markets Touch August 2007 Lows: Down By 177 Points,RCom-MTN Look For London Listing

10 Jun

Posted by Shyam as Market News

As said yesterday,the sentiment of the markets really look very bad and the bears are taking over the markets. Many important support levels have already been broken.Sensex ended the day losing 177 points or 1.17% from its previous close at 14889 levels and Nifty lost 51 points or 1.15% at 4450 levels,which is again a very important level for Nifty.

In the intra day sensex touched 14,645 levels which were the levels in Aug 2007. So the markets are now already near the 2008 lows too. Really a bad time to be in the markets.Even though the valuations looks very attractive in many stocks, the traders fear to enter into such a choppy markets. The European and Asian markets also looked very weak and the Indian markets followed the cue.

The Star performers in the coming days will be clearly Pharma and IT stocks. With Rupee touching close to 43 levels already in forex market today. The next support level for sensex is around 14,850 levels and until it trades above 15,200 levels we can still expect the markets to further slide from here. Some of the intra day calls made here were doing good today even in the falling market conditions. The pharma stocks are now the favourite of the traders for the time being.

With crude oil again touching 139$/barrel levels ,the US markets have started their day in red currently. So if the trend continues even today in US markets, we may further see some down slide in Indian markets tomorrow.

Now coming to the Reliance Communication and MTN deal. Anil Ambani is planning to list the new entity after the takeover in London Stock Exchange. The due diligence process which has already started is expected to complete very soon. The share swap ratio will be decided based on the share prices of both the companies in the last 3 months.Just keep an eye at this space to get more updates on this issue.