The Indian stock markets opened in negative territory on Wednesday taking cues from the weak Asian markets that were dragged down by renewed worries about the US economy. A drop in the US durable goods growth stoked concerns that the US is already in a recession. Most of the Asian indices slipped today on worries that there would be more bank write-downs in the US after a prominent analyst lowered first quarter profit forecasts for four major US banks namely Citigroup, Bank of America Corporation, JPMorgan Chase & Co and Wachovia Corp. The Sensex and Nifty ended with losses of nearly 1%. The BSE Realty and BSE FMCG indices were major gainers moving up by more than 2% while the IT, Bankex and Auto Indices closed in the red. The BSE Mid and Smallcap Indices surged 0.1% and 1%, respectively. Among the frontliners, ITC, Bharti Airtel, Cipla, HUL and Hindalco gained 3-7%, while TCS, Tata Motors, Infosys, SBI and Satyam Computers lost ground by 3-5%. In the Mid-cap Segment, Infotech Enterprises, Ashapura Minechem, Madras Alluminium, Tulip IT and Orbit Corp gained 10-16%, whereas India Infoline, Kirloskar Brothers, Kalyani Steels Ltd., Mphasis and Monnet Ispat lost 6-15%.

The trend deciding level for the day is 4821/15999. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally upto 4873 – 4915/16128 - 16241. However, if NIFTY trades below 4821/15999 for the first half-an-hour of trade then it may correct upto 4779/15886. Click Here to Read More