After opening negatively on Friday (Jan 23), Indian equities managed to return into the positive terrain but fell into the red once again as investors turned watchful on account of weak global reaction.

In lacklustre trading, the 30-share index BSE Sensex lost nearly 140 points amid investors awaiting fresh signals from RBI’s quarterly credit policy review scheduled for Tuesday.

The BSE Sensex, which touched an intraday high of 8858.84 in early trade, closed the day after losing 139.49 points at 8674.35. The index hit an intraday low of 8631.30 in late afternoon trade.

In contrast, the 50 stock Nifty index of the National Stock Exchange ended the week with a loss of 35.25 points at 2678.55. The Nifty hit an intraday high of 2765.55 and an intraday low of 2678.55. This level was last witnessed on December 3 last year.

In the 30-BSE index, 26 shares ended after posting losses whereas Reliance Industries, Tata Motors, Ranbaxy Lab and NTPC closed after posting gains.

The market will remain closed on Monday (Jan 26) on account of Republic Day.

With growing fears of recession and quarter-earnings, the shares from banking sector suffered the most by losing 4.16% to 4484.66. It was followed by metal index with a heavy loss of 3.35 per cent at 4427.00.

While commenting on the daily market performance, Mr. P. K. Agarwal, President–research, Bonanza Portfolio, stated that the weakness continued in Indian markets on Friday.

In addition to weak global signals, traders seemed to exit positions ahead of long weekend. Initially, Nifty hit 2,765 but came down. New lows were tested as the trading advanced.

He said, “On the same day, Nifty touched intra-day low of 2,661 and closed near the low at 2,678. Cipla, Reliance, Idea, ABB, Tata Motors were among heavy weight gainers. Oil & Gas as sector was up. Selling was seen. M&M, Nalco, Tata Steel, Zee, PNB. Banking, Metals, Capital Goods were among losing sectors.”

Mr. Agarwal also said that Nifty is having strong support at 2,600 levels. On upside 2,800 continue to be resistance. Results on weekend and RBI meet outcome on Tuesday may impact this week’s trading.