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Market Report

Wednesday, 17-Oct-2012


  • After falling to day's low of 18535.37 on fresh selling by Foreign Institutional Investors (FIIs), the 30-share Sensex closed with a small gain of 33.07 points, or +0.18% at 18610.77 points. Yesterday, it had fallen by over 135 points. The 50-share NSE index Nifty closed with a gain of 12.25 points, or +0.22% at 5660.25 led by stocks of consumer durables, capital goods and auto sectors.

  • Enthused by a higher closing in US markets yesterday, the BSE benchmark index rose to the day's high of 18705.19 in the morning. After rising 127 points in early trade, the Sensex today pared gains ending the day with a slender rise of 33 points on investors booking profits at higher levels.

  • Brokers said the initial rise was also on the back of Finance Minister P Chidambaram's comments yesterday that Parliament must pass laws necessary for promoting economic reforms and boosting growth. A better trend in overseas markets on reports that Moody's decision of not downgrading Spain's credit rating supported our markets today.

  • Good opportunity to buy into the Nifty, says Ashwani Gujral. The next two or three days will be fairly close to extreme oversold conditions and from there we should expect the market to move higher. But for the moment the range sticks on and that is a positive because the less we breakdown the less we will have to make up on the upside, he explains. Octobers generally have a very nasty reputation and going by that, I do not think this October has been so bad. Though it feels very volatile but it is not so bad, adds Gujral.

  • Market is just going through a consolidation phase, says Piyush Garg of ICICI Securities. Trading at this juncture is a little difficult. You cannot really say whether it is going to go off 100 points down or 200 points down. So, from that perspective trading is a little risky at this juncture, he warns. But otherwise market is okay, I do not see any major issues in the market, adds Garg.

  • The market trend remains on the upside, says Mitesh Thacker. Everybody in the market has been observing that for the last few days the index has been kind of bouncing back from levels of 5640-5635. But even if you were to break below that, my sense is that we might not go much deeper. We now have only five trading sessions left to the expiry, but in the next expiry we should again start picking up from lower levels, he adds.

  • Stock specific activity to drive markets till Diwali, says Prakash Diwan. The consolidation is already underway and quite a bit of it is through. There is a huge possibility that we might be very volatile in terms of this so called tight range and we might go to as low as 5500 before the expiry. In my sense, more stock specific activity is going to drive the markets till Diwali, he adds.

NIFTY 3-Month

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