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Market Report

Wednesday, 07-Mar-2012

NSE

  • The markets closed flat after a choppy session in today's trade. Metal lost significantly on news that Indonesia may reduce the stake of foreign companies operating in the country's mining business. Retail and oil marketing counters lost, too, after the poor performance of the Congress in the recently concluded state elections. Other big losers included power and capital goods. Realty, IT and banking gained significantly. The Sensex closed at 17145, down 28 points from its previous close, and the Nifty shut shop at 5220, down 2 points.

  • The top Nifty gainers today were JP Associates, Reliance Power, HCL Tech and HDFC Bank while the biggest losers included Sterlite Industries, Sesa Goa, NTPC and Power Grid.

  • In the near-term, the market is likely to be rangebound as it faces another couple of key events in the form of the Budget and the Monetary Policy, says Ridham Desai of Morgan Stanley on CNBC TV18. We think the Nifty may be coming to the end of its correction, which started at around 5600, save for adverse global events, he adds. He says that earnings revisions seem to have troughed and the market's sentiment is not to discount a good outcome but to anticipate a bad one.

  • The UP state election results may not be a significant catalyst for Indian markets, says Parul Saini of RBS on CNBC TV18. We continue to be bullish on India, specifically the banks, as we expect 125 bps policy rate cuts by the RBI this year, he adds. He thinks the valuations are below historical averages and earnings and economic growth is troughing.

  • An important level on the Nifty to watch out for is 5165-5160 and if this is breached on the downside then we could see a trend reversal which could take the Nifty down to 5060-4800, says Dharmesh Shah of ICICI Direct on Zee Busienss. On higher levels, key levels on intra-day basis would be 5260-5275 where resistance would come in, he adds.

  • As we head towards the Union Budget, we could see rallies of 100-150 points but these would be sold into, says Mitesh Thacker, technical analyst, on ET Now. In the short term, we are likely to see choppy sessions with support at 5165-5150, he adds.

NIFTY 3-Month