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Market Report

Wednesday, 03-Oct-2012

NSE

  • The 30-share BSI Sensex ended at 18873.93 today -- a level not seen since July 25, 2011. It has gained 237.52 points or +1.27% today. Similarly, the 50-share NSE Nifty closed 12.45 points higher or +0.22% at a more than 17-month high of 5731.25. In April 29, 2011, it had ended at 5749.50.

  • Rising for the third straight day, the Sensex today gained nearly 291 points in past three days on good buying but amid a weak global trend. After opening slight gap-up, the Sensex moved in a narrow 89-point range today as trading remained largely lacklustre.

  • Traders said market participants largely ignored reports that Asian Development Bank lowered India's growth forecast for the current fiscal to 5.6 per cent from 7 per cent projected earlier, citing falling global demand and impact of delayed monsoon on agricultural production.

  • Barring Hong Kong that settled higher, most Asian markets closed lower on reports that China's services industry weakened for the third straight month. Europe was marginally up as final Eurozone Purchasing Managers' Index (PMI) for September came in slightly above a preliminary estimate today. Hopes of third round of economic stimulus by US Fed this evening aided sentiment, dealers said.

  • Global liquidity essential for momentum to continue in markets, says Hemant Kanawala of Kotak Life Insurance. We are still looking at sub 6% growth for the next one or two quarters, but if you take some right steps, we can have growth returning back, he adds.

  • Nifty is consolidating in stiff range since beginning of October Series. Technically, consolidation in narrow range after decent rally is always a healthy sign and signifies the underlying strength of uptrend, says Mudit Goyal, technical analyst, SMC Global.

  • Avoid building fresh long positions near current levels, says Rajat K Bose, Technical Analyst. The market has behaved as anticipated-the Nifty range of 5685-5740 brought adequate supplies to keep the one-way traffic of the bulls in check, he explains. It would be better to expect a bit more consolidation around current levels and then a fresh short term upswing. In the unlikely event of the Nifty crossing past 5740-5750, the next levels to watch out for would be 5795 and then 5820. We, however, do not envisage the Nifty getting beyond 5820 so easily this month, he adds.

NIFTY 3-Month

(Data/Charts courtesy NSEI/Yahoo!/iCharts/The Economic Times)