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Market Report

Tuesday, 09-Oct-2012

NSE

  • The 50-share Nifty index ended at 5704.60, up 28.60 points or +0.50%, to close above the psychologically important 5700 level. It touched an intraday high of 5728.65 and a low of 5677.90. The Sensex closed at 18793.36, up 84 points or +0.45% after a fall of 1.8% in the previous two sessions. It touched an intraday high of 18885.84 and a low of 1,722.05.

  • Markets came off their day highs, amid weak European cues, to end with marginal gains today, led by software major Infosys.

  • The Asian markets ended on a mixed note as concerns over global growth prospects, especially in the world's second-biggest economy China, and expected weak US corporate earnings. The European markets gave up early gains and turned negative as persistent concerns over a slowdown in global growth continued.

  • After India's slew of reform announcements, investors are focusing on the approaching earnings reporting season. Investors are also looking ahead to industrial output data on Friday.

  • Some rub-off is expected from the earnings season as India's economy has slowed sharply, spurring the International Monetary Fund to sharply lower its 2012 economic growth forecasts for the country to 4.9 percent from 6.1 percent.

  • Meanwhile, uncertainty over the political scenario has re-surfaced with BSP leader Mayawati saying that she would decide tomorrow whether to support the incumbent UPA government or not. She also said that her party may support government's decision to allow 51% FDI in multi brand retail only if it proves to be beneficial for farmers.

  • I expect the Nifty to consolidate a bit more, although we witnessed some kind of pullback today after two days of decline, said Ashwani Gujral in an interview with ET Now. So probably for most of October we will be in a range-bound market and once results start coming out, there could be a bit of volatility, but a clear trend is unlikely in the next, say, 8 to 10 days, added Gujral.

  • Markets might correct a bit more, says Mitesh Thacker. The market is taking a breather after having a very good run for the last few days. It is look like a 120-130 point kind of consolidation to me. There is a chance that we might correct a bit more if we break 5640-5635 levels, but that is now a 50-50 possibility, he adds.

  • Indian equity markets, which have rallied on the back of foreign fund flows, could see a 4-7% upside from current levels by December 2012, reports ET Bureau. Most fund managers see Sensex above 20000 by December, it adds.

  • The fundamentals are in place and we expect the Sensex to touch 21500 by March, says Varun Goel of Karvy Private Wealth. The markets are still trading at a reasonable valuation of around 13.5-14 times FY14 numbers and in the short term, the market is going to take cues from the new earnings which are going to come in from next week onwards. Our own sense is that earnings can surprise on the positive, and energy earnings for Q2 should be of the order of at least 15% growth on year on year basis which is a very good number, he explains.

NIFTY 3-Month

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