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Market Report

Monday, 24-Sept-2012

NSE

  • Sensex, the BSE benchmark index, which had surged to 14-month high in the previous session, climbed 58.30 points at the outset but failed to sustain the momentum. It erased initial gains and finally ended at 18673.34, down 79.49 points, or -0.42%. The 50-share NSE index Nifty fell by 21.55 points, or -0.38% to 5669.60, after crossing 5700 level in the morning session.

  • Brokers said markets fell as investors booked profits at these higher levels amid rating agency Standard and Poor's cutting the growth forecast for India to 5.5% for this fiscal from 6.5% projected earlier and the govt's announcement that there will be bailout but no reforms for the power distribution sector.

  • Meanwhile, the Asian markets closed on a weak note as focus shifted to weak economic fundamentals and progress in the euro zone debt bailout scheme. The European markets were also trading on a weak note on Spain's unresolved debt crisis as euphoria over global monetary stimulus efforts faded.

  • Nifty may head towards 5800-5900 in near term, says Jagannadham Thunuguntla of SMC Capitals. I am not expecting any bearish mode till the US elections. Reform process in India has added to the cocktail. There is absolutely no point in getting into the short side. The liquidity is way too strong, he adds.

  • Market will keep moving up on reform, says Sudip Bandyopadhyay of Destimoney Securities. Europe did see a correction and in spite of that the Indian markets did not correct that much. Yes, there were some corrections, some profit taking, but overall the Indian markets did sustain, consolidate, and subject to more reforms coming in, the Indian markets will keep moving up, he adds.

  • Shift from large caps to midcaps for the near term and yes, index could give you 150-200 points on the Nifty. Bank Nifty could correct towards 10800-10900 kind of zone, says Ashwani Gujral.

  • A 70-80-point cut could happen on the Nifty. So 5630 is my first level. As long as that is being held, we are broadly still sticking to our long positions on the banking side, says Mitesh Thacker.

  • Now market seems to be getting back into its own rhythm and investors may see some more sideways movement. Midcap stock certainly will be the flavour of the season, so that is where investors will focus on, says Dipan Mehta, Member, BSE and NSE.

NIFTY 3-Month