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Market Report

Tuesday, 16-Oct-2012

NSE

  • The 30-share Sensex finally ended the session down 135.85 points, or -0.73% at 18577.70 a level last seen on September 27. Likewise, the 50-share National Stock Exchange index Nifty fell by 39.25 points, or -0.69% to end at 5648.00 today.

  • The Sensex today erased initial gains to close 136 points lower at a nearly three-week low on heavy selling. For the most part of the day, the markets traded in a tight range with a positive bias. However, post the noon selling pressure erased early gains and the Sensex fell 224 points from the day's high level. As many as 23 stocks reported losses. Dealers said even a positive opening in European indices failed to enthuse the domestic market sentiments.

  • Meanwhile, the European markets were trading marginally higher as investors were buoyed by the latest batch of US data and earnings and hopeful a meeting of European leaders later in the week can advance plans to tackle Spain and Greece's debts. The Asian markets ended on a positive note as investor sentiment improved on the back of an overnight rally in US stocks.

  • More reforms, positive political developments may take Nifty to 6000 levels by December-end, says Jagannadham Thunuguntla of SMC Capitals. it is just a matter of time. We still have some months left and we are talking about just 300 Nifty points. It is just that no political development in India should occur on the negative side and there should be a decent reform announcement by the government, he explains.

  • First rate cut by RBI unlikely before Feb 2013, says Sujan Hajra of Anand Rathi. RBI will maintain monetary easing stance, but this will play out more through the liquidity channel rather than through the interest rate channel, says Hajra. Given the level of inflation, more likely there will be a CRR cut, maybe a 25 bps CRR cut, rather than a rate cut, he adds.

  • Market is consolidating, says Deven Choksey. I am not surprised to see this movement right now. Earlier, with heavy doses of reforms, the market moved up significantly from almost 5200 levels to 5700 plus levels. The market is consolidating at this point of time. Secondly, it is definitely waiting for the triggers to come from the winter session of the parliament where the reform measures will get approval. Once the reforms are approved you would gradually see the investors' interest coming back.

  • Buying opportunity still remains in the market, says Ashwani Gujral. Some of the daily indicators are moving into oversold territory. The market is not moving a lot. The high was 5800 and we were down hardly 3% after a 20% type of rally. So, while 50 points decline may seem a whole lot but it is not really that much. The opportunity to buy still remains there, he explains.

NIFTY 3-Month

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