MTECHTIPS

MTECHTIPS:-Technical Snapshot

The Nifty  opened the day  with small losses,  but sustained selling pushed the indices lower. Indices, after a flat start, tried to stick near its pre-close level but, what happened in second half was one way slide of the markets to the lowest levels on the back of selling pressure visible in the heavyweight pockets. Shares of Reliance Industries  remained under pressure after Morgan Stanley cut its rating to ‘underweight’ from ‘equal-weight’, citing lack of near-term triggers, expectations for weaker refining margins and valuation. The US investment bank also cited concerns about RIL’s investments into businesses that offer ‘low’ return-on-equity, as well as a subdued outlook on petrochemicals.Depreciation in Indian rupee, dampened the sentiments as it declined by 46 paise to Rs 52.31 per dollar at the time of equity market closing on Monday, weighed down by dollar’s gains overseas. Moreover, selling intensified as Realty counter tumbled three and half percent, led by over seven percent fall in DLF as social activist Arvind Kejriwal accused the company for favoring Robert Vadra, son-in-law of Congress chief and the UPA Chairperson Sonia Gandhi with easy loans for some undue gains. Oil and Gas space also declined by over two  and a half percent, dragged down by RIL, which fell over four and half a percent on downgrade by a global mortgage firm and as petroleum ministry rejected its plea of any immediate revision in gas price before April 2014.