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Market Report

Wednesday, 12-Dec-2012

NSE

  • The Sensex, which had lost nearly 100 points in the past three trading sessions, fell further by 31.88 points, or 0.16 per cent to close at 19355.26 today. The gauge touched the day's high of 19478.79 in early trade but failed to sustain momentum after IIP and inflation data were released. Similarly, the broad-based National Stock Exchange index Nifty fell by 10.80 points to 5888.00 points, after rising to 5924.60 at the outset. It touched a low of 5874.25 in trade today.

  • Registering losses for the fourth straight day, the market today closed lower as a sharp rebound in industrial growth during October and retail-level inflation inching up to 9.9 per cent in November, dimmed interest rate cut hopes. The IIP number failed to excite the markets as they likely focused on the impact of this data on RBI's interest rate decision next week (Dec 18). We believe RBI will not reduce rates at mid-quarter policy review, said experts.

  • Brokers said trading remained listless as they reduced their holdings despite a firming trend in Asian and European stock markets. Asian stocks firmed up on the back of agreement on the US cliff and that the US Fed would resort to more asset buying. European shares were trading mixed ahead of the US Fed's decision.

  • Healthy correction will be better for the market, says Jagannadham Thunuguntla of SMC Capitals. There should be a decent dip. We will not be surprised if the Nifty gets back to 5780-5800 level that means decent 80 to 100 point correction, he adds.

  • Opportunity still remain on the buying side, says Mitesh Thacker. I am looking for a slightly bigger consolidation and a proper dip of about 50-70 points on the Nifty to buy into fresh stock positions, he says.

  • Buy with even 30-40 point stop loss if market dips below 5900, says Ashwani Gujral. If you have long positions from earlier, I do not think you should get shaken out with these 20-25 point kind of dips, says Gujral. Just hang in and hope that the market turns around. The upside is 6200 or 6150, and downside is 80 points. From here, you should try to get in whenever you think it is possible, he adds.

  • I remain positive on the markets, says Mehraboon Irani of Nirmal Bang Securities. Positions are started getting built in and there is a sense of complacency which has come in and this complacency is worrying but only from the very short term angle, he adds.

NIFTY 3-Month

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