Nifty Technical views on 11-11-2011

Sensex ends 207 pts down on euro woes; bankex dives 2.5%

After a lacklustre trade since the opening, the BSE benchmark Sensex shed more than 200 points in the last hour of trade due to renewed concerns in the eurozone. The fall of 7% in SBI on account of worries over its assets quality too added severe pressure on the market. Banking, oil & gas, auto, capital goods and metal stocks caught in bears' hand.

Ritu Arora of Canara HSBC Oriental Bank of Commerce Life Insurance Company feels that global environment does pose a lot of challenges at this point in time and the center of worry is Europe. "The focus shifts from Greece to Italy and Italy is the second most leveraged economy at 120% of GDP in eurozone."

Fears that the debt crisis could spread to Italy even after Prime Minister Silvio Berlusconi is ready to resign. European markets like France's CAC, Germany's DAX and Britain's FTSE were down between 1% and 2%. Others like Athex Composite (Greece) tumbled 2% and FTSE MIB (Italy) plunged over 4%. TheDow Jones futures crashed 186 points.

Back home, the 30-share BSE Sensex dropped 207.43 points or 1.18%, to close at 17,362.10 led by fall in 24 stocks. The 50-share NSE Nifty slipped 68.30 points or 1.29%, to end at 5,221.05.

Global cues drag Sensex 100 pts lower; SBI falls 6%

The BSE benchmark Sensex shed more than 100 points following negative European cues. France's CAC, Germany's DAX and Britain's FTSE dropped over 0.5% on worries over Italy and Greece. The Dow Jones futures fell nearly a percent. The 30-share BSE Sensex plummeted 119 points to 17,450.35 and the 50-share NSE Nifty lost 41.5 points to 5,247.90.

SBI crashed over 6% due to deterioration in asset quality in the second quarter. Net profit and net interest income of the bank were up 12% and 28% to Rs 2810 crore and Rs 10442 crore, respectively. But the most worried part was its non performing assets, which rose to 4.19% in Q2FY12 versus 3.35% year-on-year.

Reliance Industries, ONGC, ICICI Bank, Tata Motors, Tata Steel, M&M, BHEL, NTPC, Sterlite Industries and DLF were down between 1% and 2%. HDFC Bank and L&T fell 0.8%.

Maruti Suzuki lost nearly 3% and Hindalco was down 2.5%.

However, HUL shot up 3.3% and ITC gained 0.76%. From the technology space, TCS jumped 1.8% post the company has received USD 2.2 billion order from Friends Life and Wipro gained 2%.