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Market Report

Friday, 19-Oct-2012

NSE

  • Snapping a two-day rally, the BSE benchmark Sensex today shed nearly 110 points on emergence of profit taking to end at 18682.31 -- down 109.62 points, or -0.58% over Thursday. On similar lines, the broad-based 50-share National Stock Exchange index Nifty lost 34.45 points or -0.60% to close at 5684.25.

  • For the week, the Sensex has ended lower on the back of profit booking and absence of fresh triggers for the market.

  • Globally, major Asian markets fell around 0.5-1% while European indices were trading weak in afternoon deals.

  • Brokers said selling activity picked up after US markets closed in negative on poor earnings by tech majors. September quarter earnings remained a major worry as one out of the three index companies have so far reported earnings below market expectations, dealers said.

  • Earlier in the day, the markers started marginally lower. In the intra-day trades, the Sensex had touched a low of 18,612 and a high of 18,770.

  • Technical analyst, Salil Sharma indicates that on the downside, Nifty has an important support at 5620. This is a critical level and if the index breaks this level then it can go down to 5530. On the upside, resistance is seen at 5755 and this level is taken then Nifty may move up to 5825 levels. If there is a rate cut then we may move to a higher trajectory, he adds.

  • Market is in a good momentum at the moment, says Dilip Bhat of Prabhudas Lilladher. We should understand that the market is in quite a good momentum at the moment and there is enough tailwind in terms of the FII inflow, Dilip said.

  • Hold on to your positions & wait for the market to give direction, says Ashwani Gujral. The market is still consolidating. A breakout was needed to make big move with big volume but we failed. So, the market still remains sideways. Once we get out of 5730 levels, then chances are that you will get your 300-400 points. There is no point trying to trade this 100 point range. So, just hold on to your positions and wait for the market to give you that next big directional move, he advises.

NIFTY 3-Month

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