Nifty slips below 7500 on heavy selling in FMCG stocks

1. Nifty slips below 7500 on heavy selling in FMCG stocks
Market Snapshot | 23-06-2014 04:20 PM
Following a marginally higher start, Indian indices plunged in morning deals on concerns over Iraq crisis that has taken
oil prices to near nine month high levels. Benchmarks continued to slip further in absence of positive trigger and
pessimistic Asian cues. Sensex and Nifty marked intra-day lows below the crucial levels of 25K and 7500 respectively
before ending marginally in red zone. On BSE sectorial front, FMCG was the top laggard.
Among global peers, US markets traded with modest gains with the Dow and the S&P 500 both reaching new record
closing highs on hopes that borrowing costs will remain low. Asian and European benchmarks were mostly in red zone.
Back home, on currency front, Rupee weakened against Dollar tracing the pessimism in local equities. In futures
trades, INR hit an intra-day high of 60.16/USD and an intra-day low of 60.36/USD. In spot trades, INR hit an intra-day
high of 60.06/USD and an intra-day low of 60.27/USD. As per RBI reference rates, INR stood at 60.19/USD.
On commodities front, the yellow metal witnessed murky trades on persistent tensions in Iraq. In futures trades of
August expiry, Gold marked intra-day high at Rs 27746 per 10 grams and an intra-day low at Rs 27605 per 10 grams.
On macro-economic front, adding to the slew of discouraging digits, Foreign Direct investments (FDI) on India
tumbled to 5 months low levels in April 2014. FDI slipped 26% to $1.70 billion in April as compared to $2.32 billion in
the same month of previous year. Maximum FDI during April was received from Mauritius with $489 million followed by
Singapore ($316 billion).
After FDI buzz, MODI Government has taken a hard step to check the faltering finances of Indian railways and
approved a steep hike in the train fares and freight rates. The passenger fares of all classes would be hiked by
14.20% and freight rates would go up by 6.5%, effective from June 25. This will mop up an additional Rs 8000 crore in
the financial year. The railway stocks climbed up to 2.7% on BSE today.
Food Minister Ram Vilas Paswan has hiked the import duty on Sugar from 15% to 40% to bail out the sugar industry
which is unable to pay Rs 11000 crore dues to sugarcane growers. Sugar stocks rallied up to 10.3% on BSE today.
On stock-specific front, Essar Oil spiked 5% on BSE after board gave a green signal to promoter’s proposal for
delisting of company’s shares from stock exchanges.
AstraZeneca Pharmaceutical jumped 2.3% on BSE in the otherwise negative market as shareholders approved for
voluntary delisting of equity shares of the company from the stock exchanges.
FMCG bellwether, ITC tanked 6.5% on BSE on tax hike speculations on cigarette in the upcoming budget.
The market breadth on the BSE closed in positive. Advancing and declining stocks were 1641 and 1439 respectively,
while 148 scrips remained unmoved.
The S&P BSE Sensex ended at 25031.32, down 74.19 points or 0.30%. The 30 share index touched a high and a
low of 25197.50 and 24878.66 respectively. 21 stocks advanced against 8 declining ones on the benchmark index.
The CNX Nifty lost 18.10 points or 0.24% to settle at 7493.35. The index touched high and low of 7534.80 and
7441.60 respectively. 34 stocks advanced against 16 declining ones on the index.
S&P BSE Sensex CNX Nifty
The S&P BSE Mid-cap index moved up to 9018.07 and gained 0.63% while S&P BSE Small-cap index jumped up by
0.56% to 9816.35.
The broader S&P BSE 500 index decreased to 9579.93 (down 0.03%) and CNX 500 index declined to 6037.95 (down
0.01%).
The volatility as denoted by INDIA VIX gained 0.58% at 18.96 from its previous close of 18.85 on Friday.
Sectors in action
On the BSE Sectorial front, Oil & Gas (up 1.43%), Metals (up 1.13%) and Automobile (up 0.73%) were the top gainers.
FMCG (down 4.06%), Information Technology (down 1.56%) and Consumer Durables (down 0.90%) were the top

2. FMCG (down 4.06%), Information Technology (down 1.56%) and Consumer Durables (down 0.90%) were the top
losers.
The Angels and the Devils
Oil and Natural Gas Corporation Ltd (up 4.63%), Hero MotoCorp Ltd (up 2.38%), Bharat Heavy Electricals Ltd (up
2.26%), Sesa Sterlite Ltd (up 1.80%) and Mahindra and Mahindra Ltd (up 1.45%) were the top gainers on the Sensex.
ITC Ltd (down 6.50%), Infosys Ltd (down 2.55%), Hindustan Unilever Ltd (down 1.03%), Tata Consultancy Services
Ltd (down 0.95%) and Wipro Ltd (down 0.93%) were the top losers on the Sensex.
Benchmark Drivers
ITC Ltd (-141.11 points), Infosys Ltd (-47.87 points), Oil and Natural Gas Corporation Ltd (38.41 points), ICICI Bank
(19.36 points) and Tata Consultancy Services Ltd (-14.83 points) were the major Sensex drivers today.
On the other end ITC Ltd (-34.66 points), Infosys Ltd (-12.31 points), Oil and Natural Gas Corporation Ltd (10.32
points), ICICI Bank (6.01 points) and Kotak Mahindra Bank Ltd (-4.54 points) were the major Nifty movers today.
Pivot, Supports and Resistance Levels
CNX Nifty is now pivoted at 7490 for next session. The next support is at 7445 and on upside it has a resistance at
7538 levels.
CNX NiftyCNX Nifty
Eff. DateEff. Date S 3S 3 S 2S 2 S 1S 1 PIVOTPIVOT R 1R 1 R 2R 2 R 3R 3 Actual CloseActual Close
24-Jun-2014 7352 7397 7445 7490 7538 7583 7631 -
23-Jun-2014 7422 7460 7486 7523 7549 7586 7612 7493.35
20-Jun-2014 7389 7446 7493 7550 7597 7654 7701 7511.45
S&P BSE Sensex has a pivot at 25036 with first level of support and resistance at 24874 and 25193 respectively.
S&P BSE SensexS&P BSE Sensex
Eff. DateEff. Date S 3S 3 S 2S 2 S 1S 1 PIVOTPIVOT R 1R 1 R 2R 2 R 3R 3 Actual CloseActual Close
24-Jun-2014 24555 24717 24874 25036 25193 25355 25512 -
23-Jun-2014 24796 24926 25016 25146 25236 25366 25456 25031.32
20-Jun-2014 24683 24876 25039 25232 25395 25589 25751 25105.51
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