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Market Report

Monday, 22-Aug-2011

NSE

  • It was a good start to the week for the Indian market which, despite a flat and subdued opening, picked up steam midway on the back of short covering and closed up with smart gains. The pullback was seen in ADAG, infra and metal stocks. Sensex shut shop at 16341, up 200 points and Nifty at 4898, up 53 points from the previous close.

  • Top Nifty gainers today were SAIL, RCom and IDFC while losers included GAIL, DLF and HDFC Bank.

  • The most significant setback for Asian equities since the 2008 low is unfolding now, says Laurence Balanco of CLSA on CNBC TV18. Our preferred view has been that an oversold rally off the August low should be followed by another thrust down to undercut recent lows, he adds. He believes that the next leg down should take the MSCI Asia ex-Japan 11-20% below current levels.

  • The intra-day chart of the Nifty is looking weak and all rallies will be only a relief rally and selling pressure will come in, says Simi Bhaumik, technical analyst, on Zee Business.

  • Market valuations are looking particularly attractive at current levels and the Sensex is trading at a 21% discount to its five-year average of 16x, which is already pricing in significant risk to earnings, says Prabhat Awasthi of Nomura India on CNBC TV18. We believe that the risk-reward trade-off would turn even more favourable when rates begin to decline, he adds.

NIFTY 3-Month