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Market Report

Monday, 19-Nov-2012

NSE

  • The Sensex, which had tumbled to two-month lows by losing 593 points in the past six sessions, recovered 29.63 points, or +0.16% to close at 18339.00 today. However, the 50-share National Stock Exchange index Nifty eased by 2.65 points to settle at 5571.40 today.

  • After initial volatility, the markets remained range bound for most of the day. While we had seen sharp declines toward the end of the last week, today any kind of fall was arrested by the strengthening of Rupee versus US dollar. The Sensex moved between 18386.78 and 18256.07 during trading today.

  • Brokers said buying at low levels in selective counters helped Sensex end in positive zone amid investors judging the recent losses as overdone.

  • The Asian markets ended on a positive note in trades today as investors were encouraged by an improving outlook for talks to resolve an imminent fiscal crunch in the United States. The European markets were trading mixed with DAX and FTSE marginally down and the CAC-40 trading higher by 0.1%.

  • Wait for the Nifty to show strength before initiating any trade on the index, says Ashwani Gujral. It seems like this down move is corrective and it is always difficult to trade corrective moves. So it is a good idea to sit aside and wait for the market to show strength. Once they come to about 5630 levels, the market completes it correction and re-enters some kind of an uptrend, he adds.

  • Do not see strength in Nifty, more downside likely, warns Sandeep Wagle. If the Nifty breaks 5630 levels then I would change my view but at this point in time, we have recommended a short at 5590-5610 levels and 5630 is our stop loss, he adds.

  • Use market corrections to build long-term positions, says Ajay Srivastava of Dimensions Consulting. History might repeat itself if the government does not have a tangible plan to arrest the export decline which is taking place, Ajay said.

NIFTY 3-Month

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