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Market Report

Wednesday, 07-Nov-2012


  • Sensex, the BSE index, rose +0.45% or 85.03 points to end at 18902.41 bringing its gains to 2.55% over the past six sessions. Nifty, the 50-share NSE index, rose +0.62% or 35.70 points to end at 5760.10 marking its highest close since Oct. 4.

  • Sensex rose for the sixth straight session today, marking their highest close in near 4-1/2 weeks. The gains also tracked a rally in global shares after U.S. President Barack Obama was re-elected, signalling no dramatic shift in US economic policy. This is considered to be sentimentally positive for India and Indian markets. Attention now switches to Greece where parliament votes later in the day on an austerity package.

  • European stocks rallied early today as the re-election of US President Barack Obama fuelled expectation the Federal Reserve's quantitative easing will continue. Asian markets were also mostly in the green with Shanghai and Nikkei the only markets flat with a negative bias.

  • At home, with the quarterly earnings season nearing its end and euphoria over government reforms subsides, focus would shift to India's yawning fiscal gap, dealers said. India will likely miss its revised fiscal deficit target for the financial year ending in March, a Reuters poll showed, putting a question mark over the country's efforts to avert a credit rating downgrade.

  • Markets may see intermediate correction post Diwali, says Ashwani Gujral in a chat with ET Now. We will probably enter a phase where things get extremely hot and some kind of correction starts before we restart this rally, says Ashwani Gujral in a chat with ET Now. Everything positive which had to happen is probably now behind us. The upside from here could be 100-150 points Nifty, but if an intermediate correction starts which is an event which happens post Diwali, he adds.

  • We may see some more acceleration, says Mitesh Thacker. The Nifty has managed to get past 5730 -- that becomes a reference point so as long as we are above 5720-5730 the long side positions can be comfortably held and my belief is that 5800, which was the earlier high, should be surpassed, says Thacker. Possibly we are looking at levels of 5880 to about 5920 to be tested in the Nifty and therefore we will continue to hold on to long positions, he adds.

NIFTY 3-Month

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