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Market Report

Wednesday, 10-Oct-2012

NSE

  • The BSE index fell -0.86% or 162.26 points, to end at 18631.10 points. The 50-share NSE index lost -0.92% or 52.45 points, to end at 5652.15 points, closing below the psychologically important 5700 level on declining volumes. If the Nifty goes below the 5650 level, the near-term trend may turn to be bearish, and further selling pressure may be seen.

  • Indian shares ended lower on Wednesday, led by profit-taking in banking stocks, after rating agency Standard & Poor's warned the country still faces a threat of a rating cut despite recent reforms.

  • Dealers are looking forward to October quarter earnings that begin later this week. This earnings season will be the last quarter with subdued earnings. Come next quarter, all the decisions taken by the government will be reflected, they say. Lot of positive effects will start showing form the next quarter. Hopefully, if there is an interest rate cut by the RBI, that will show up as well and strengthening of the rupee will also get reflected, they add. Industrial data on Friday and Monday's inflation data will impact the near-term market trend.

  • European shares fell for the third day running as economic anxiety was compounded by stuttering progress in the euro zone's battle against its debt crisis.

  • Visiting US Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke today met corporate India leaders and discussed the recent American policy measures like the quantitative easing and the economic climate in the country.

  • Profit booking, sectoral rotation seen at higher levels, reports ET Now. Investors are selling some stocks that have moved fast in the last couple of months, and buying into those which have not moved up much or which have fallen, they say.

  • There is a good chance that we might decline by another 80-90 points and look at levels of 5540-5550, says Mitesh Thacker. That is where important support levels come in. The key thing for the short term is that the Bank Nifty has broken down which lends us to believe that we might see some more downside before the bounce back. 5635-5640 is an important level for Nifty, he adds.

  • Market may accelerate on downside, says Ashwani Gujral. We are not participating a whole lot in the market right now on the downside but the idea remains that we wait for this correction to finish and then get back into large cap stocks for the upside, he adds.

  • India reforms cheered, but impact still uncertain, says market analysts. India's reforms blitz has cheered markets and changed perceptions of the government but the outcome is far from assured, with the nation a long way from returning to a high-growth path, analysts say.

NIFTY 3-Month

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