Sensex plunges 322 points last week to settle below 20,000

Indian equity markets settled the expiry week sharply lower with Sensex and Nifty slipping below their psychological mark (20,000 and 6,000) on weak global cues and uninspiring results. The RBI's repo and CRR cut of 25 bps failed to boost the markets as the investors preferred to cashin gains that have build in rate-sensitive sectors in recent past. The bright spot was the OIL issue, which was fully subscribed. Most of the sectoral indices traded weakled byBSE Capital Goods, Oil & Gas and Auto. The 30-share index, Sensex fell sharply 322.34 points or 1.6% over previous week to 19,781.19. On the other hand, the broad based NSE Nifty dropped 75.75 points, or 1.25%, to 5,998.9. Meanwhile, BSE Mid and Small-cap indices declined 0.10% and 1.21% respectively. Most sectoral indices at the BSE ended lower. Top losers were BSE Capital goods (2.94%), Oil & gas (1.69%), Auto (1.67%), Teck (1.62%), Power (1.29%), PSU (0.78%), IT (0.73%), Metal (0.71%), and Bankex (0.69%). However, Consumer durables went up (2.20%), followed by FMCG (1.68%), Realty (1.33%) and Healthcare (1.10%).Commenting on the outlook, Dipen Shah, head of Private Client Group Research, Kotak Securities said,''Post the RBI policy meeting, the focus is now expected to shift to other domestic and global cues, especially the US debt ceiling and spending cut issues. The up-coming budget will also take the market's attention. The FM has indicated that, the budget will be a responsible budget which may entail a reduction in fiscal deficit target. While this is positive, we need to wait for the finer details and assumptions behind the same.''''With the RBI policy out of the way, the coming week would see some more stock-specific action as the quarterly numbers come in. With the start of February, market expects a run-up to the budget. The near term support for the Nifty remains at 5,965 levels. A move below the critical level would see selling pressure intensify in the near term which could open gateway towards 5,750,'' said Amar Ambani, head of research, IIFL.While commenting on technical outlook for the coming week, Rakesh Goyal, senior vice president, Bonanza Portfolio said, ''Nifty is seen consolidating in a narrow range of 5,940-6,100 now. Till Nifty trades above 5,940, near term up-trend is intact and buying may be considered in dips. However, if 5,940 is broken, it may lead to further selling pressure. With Q3 results for FY13 almost over, focus shall be on cues from global markets which are likely to drive market trend. As 6,100 is an important resistance level in near term, in coming week, 5,940 level shall be crucial deciding level in near term, and index is likely to witness further selling below this level. Below 5,940, likely support levels are 5,870-5,820, while above 6,025, likely target is 6,100-6,150."