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Market Report

Friday, 04-May-2012

NSE

  • It was a dismal end to the week for the Indian market which saw intense selling pressure towards the latter part of the day on concerns that India was considering a review of the Double Taxation Avoidance Treaty with Mauritius. This led to a sudden crash which caused the Nifty to breach its 200 DMA and close with huge losses and below the 5100 mark. Metals, banks, capital goods and realty ended with deep cuts. Sensex shut shop at 16831, down 320 points and Nifty at 5086, down 101 points from the previous close.

  • Top Nifty gainers today were Cipla, Sun Pharma and Wipro while losers included Bank of Baroda, PNB and BHEL.

  • This week the Indian market traded within a tight band for the most part until today when the indices broke out of the narrow range and proceeded downwards breaching all important levels. The benchmark indices were at the lowest point since January end this year with infrastructure being among the top losing sectors. This week's performance was poor and the numbers are: Sensex down 2.1% and Nifty down 2.9%. CNX Midcap index was down 2.8%, BSE Smallcap index down 2.4% over the week.

  • As long as the Nifty trades within the range of 5300 and 5100, this should be considered as a no-trade zone because there will be too much of volatility, says Puneet Kinra of Bonanza Portfolio on CNBC Awaaz.

  • I think as long as the market holds 5080, there is always a hope that it will bounce back, says Anil Manghnani of Modern Shares and Stockbrokers on CNBC TV18. But if it starts to go below that then I will be a little more concerned because that is a 50% retracement of the entire move from 4530 right up to 5630, he adds.

  • All long positions should be squared off at this point, says Pradip Hotchandani of Prudent Broking on Zee Business. The Bank Nifty could see a fall of 2-3% so avoid financial stocks, he advises.

  • India shouldn't be paying too much attention to rating agencies but probably follow China's lead and have its own rating agencies, says Jerome Booth of Ashmore Investment on CNBC TV18.

NIFTY 3-Month