A morning walk down Dalal Street | Nifty can remain weak if it does not cross and hold 11,171

After a manic Monday, we saw a terrible Tuesday, a fiery Wednesday and now a freaky Friday.

The S&P BSE Sensex has plunged over 1,000 points for the week while investors’ lost nearly Rs 2 lakh crore on the BSE. The Sensex opened on a strong footing on Friday, but after around 1 pm, it plunged to sharpest levels by 1,500 points (3 percent from the day’s high), its biggest swing in four years. It was a volatile day for Indian markets. At one point in time Sensex was down by over 1,000 points but then it quickly recovered narrowing the loss to just 279 points towards the close of the trade.

The Nifty50 which slipped below 11,000 managed to recoup losses and closed at 11,143. There was panic selling in the market as non-banking financial companies (NBFCs), led by a huge drop in the shares of Dewan Housing Finance (DHFL), dragged financial stocks. DHFL closed 42 percent lower at Rs 351.55. Nifty recovered by around 300 points from its panic lows but overall bears are keeping their tight grip on the market. It has also broken its support of 11,171 and till it doesn’t cross and hold above 11,333 zones, overall weakness could remain intact for a decline towards 11,000 and lower zones.

Rallies should be used to create short positions on the index with a stop above 11,,333-11,350. IPOs worth Rs 2,264 crore will hit the D-Street this week

The first IPO is state-run Garden Reach Shipbuilders and Engineers which aims to raise Rs 345 crore at the higher end of price band of Rs 115-118. The issue will open for subscription on September 24 and close on September 26. The second IPO is of AAVAS Financiers, an NBFC, which targets to raise Rs 1,734 crore through the issue during September 25-27 at the higher end of price band of Rs 818-821 per share. Dinesh Engineers would be the last IPO of the week as well as month. The company seeks to raise Rs 185 crore at the higher end of the price band of Rs 183-185 per share, by issuing 1 crore shares.