The euphoria created with Reliance Power IPO and the response it received from all categories of clients vanished with its closure, and secondary market melt down, Wochardt Hospitals Ltd issue has not received the minimum subscription, inpsite of reducing the price band, extension of time for subscription, and might have to return the application money to investors who subscribed till date, since minimum 90% subscription is required for listing on exchanges, as per SEBI guidelines.
As feared, our indices could not clear 5DSMA due to bear pressure, and due to triggering of stop losses there was a steep fall and finally Nifty closed just around January closing levels Nifty(5137.45) & Sensex(17648.71), at the end of the session. Whether September closings of Nifty(5021.35) & Sensex(17291.10) offer support to the indices on closing basis would confirm the medium term trend for our markets, since today is the last day of the week and indices have posted losses consecutively for the past 3 weeks, ever since correction started in January' 2008.
In any panic situation, 200DSMA standing at Nifty4970.43) & Sensex(16896.67) would offer good support for our markets and long term portfolio builders can pick blue chip stocks at such opportunities, for substantial returns by year end, since the long term bullish trend is still intact for our indices, though US markets and Japan are in bearish trend.
Investors should stay away from public issues offering with high unreasonable premiums, since the turmoil in seconday markets will always have their effect on the primary markets too.
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