Buyers Lie In Wait For Negative Trigger

Most players are of the view that the Sensex could test 2900 levels, from which it may rebound by another 400-500 points. However in the absence of any kind of news, either positive or negative, the market seems to trapped in a narrow range.

Foreign funds have been more aggressive on the selling side over the past few trading sessions. But except a few funds, they are hesitant to sell beyond a certain limit.

Their hesitancy stems from the fact that even a modest selling order can severely affect prices thereby making further sales unviable.

The wait is now on for some negative catalyst which could push the market below 3000 levels, thereby triggering off some renewed buying interest at those levels.

 

Quit India

Among key index stocks, Reliance bore the brunt of sell orders from foreign and domestic funds. One bank-sponsored fund is reported to have sold around 1.5 lakh shares of the company on Friday.

A leading Singapore based fund, which seems to be in tearing hurry to get out of India, was also a big seller. The fund is reported to have sold around 13 lakh Reliance shares on Thursday and Friday. Despite purchases to the tune of around 11 lakh shares by another "FII", which operates through a local brokerage, the scrip has been crashing to new-52 week lows almost every other day. Local funds too seem to be washing their hands off the company.

The buzz around is that the Singapore fund is planning to reduce its exposure to local markets substantially and invest instead in developed markets. A quick turnaround for a fund which was an aggressive buyer when the Sensex was on its downtrend in the last week of April.

Other sales by the fund on Friday included around 1 lakh ITC shares, a similar quantity of L&T, 25,000 shares of HLL, 75,000 shares of Bajaj Auto, 10,000 shares of Hindalco, 75,000 shares of HPCL and around 2 lakh MTNL shares.

Around 8-10 lakh shares of MTNL were sold on Friday, with a single FII reported to have sold around 5.5 lakh shares. A couple of foreign funds were reported to buyers at the counter on Friday, but this was negligible amount when compared to the sales.

Though pharma scrips having been faring well at the bourses over the past couple of trading sessions, the Ranbaxy scrip seems to be the odd man out. Foreign funds, mainly a US-based fund, have sold close to 1.25 lakh Ranbaxy shares on the last three trading days of the week.

LIC is reported to making steady purchases at the counter, having purchased around 35,000 shares of the scrip on Friday.

Other purchases by the same institution on Friday included around 16,000 shares of GACL, 11,000 shares of Hindalco, 30,000 shares of HPCL and 20,000 BSES shares.

The Big Daddy among local institutions is using the FII sales at the HPCL counter as an excellent opportunity to get into the stock. It is reported to have picked up around 75,000 shares of the scrip on Friday. It is also reported to have bought around 55,000 shares of the Satyam Computer scrip and sold close to 70,000 shares of the Nestle scrip.The SBIMF is reported to have sold around 75,000 shares of BSES on Friday.

Sterlite witnessed renewed buying interest amidst selling pressure in most of the front-line stocks. An FII brokerage is reported to have picked up a little over a lakh shares of the scrip yesterday.

Down and out

A leading operator. often linked with the ITC counter, now seems to be training his sights on software stocks. He is reported to have purchased around 25,000 shares of Infosys Technologies on Friday. A sad story for a blue-chip which was considered the market barometer just six months ago.