It was a day of correction in the markets as the benchmark All Share Index lost 58 points to close at 5,910.81. The Milanka Index lost 87 points to close at 5,542.93. Markets started off on a flat note, corrected a bit and then recovered but finally gave in to profit booking that dragged the indices deep in red at the last hours. However some stocks recorded significant gains even in today’s correction, among them was CIFL.N the stock was up 34.18% to close at LKR 10.60. Among other gainers were BBH.N the stock was up 16.67% to close at LKR 27.30 and SING.N the stock was up 15.25% to close at LKR 114.90. The market breadth was negative today as 188 shares declined and only 59 shares advanced. Foreigners were net buyers as the net foreign inflow stood at 175.13 million.
The Markets have corrected from resistance area of 6,000 as profit taking is emerging at this zone. The markets have retraced the Fibonacci retracement level of 38.2% of the fall from Feb 2011, markets are likely to go into a sideways consolidation and even correct from current levels. If the Index is able to move above the resistance zone of 6,000 then it can target 6,150 and above. On the downside 5,750 will provide good support to the markets .