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Market Report

Monday, 17-Dec-2012

NSE

  • Sensex, the benchmark BSE index, fell -0.38 per cent, or 72.83 points, to end at 19244.42 today, falling for the sixth session in seven. Nifty, the broader NSE index, fell -0.37 per cent, or 21.70 points, to end at 5857.90 today, closing below the psychologically important 5900 level, for a fifth day.

  • The market are in a wait-and-watch mode ahead of monetary policy and larger picture of US fiscal "cliff" related negotiations, said experts. Caution set in a day before the Reserve Bank of India's policy review. The central bank is widely expected to hold off on easing interest rates but may signal a more dovish stance.

  • Goldman Sachs, however, said it expects RBI to cut interest rate by 25 basis points on Tuesday after inflation was data was much lower than expected. The contrarian view was not widely shared by other analysts. Some analysts are expecting the RBI to cut the cash reserve ratio for banks. The probability of a CRR cut is much higher on Tuesday, they say.

  • Asian shares ended lower on Monday with the exception of Japan and China. The Nikkei rose 0.9% to 9828.88, the highest closing level since April 3. Shanghai Composite gained 0.5%.

  • The market is still consolidating, says Mitesh Thacker. Nifty has gone into a shell. Analysts say levels of 5840 on the Nifty that is very important critical intra-day support, said Thacker.

  • Market is correcting down slowly, says Ashwani Gujral. If we keep correcting this 10-20 points a day I do not think the correction will assume serious proportion. Market is trying to bottom out. In a strong market that would generally be the case but that would need the market to close above 5900, he adds.

  • Go selectively into some stocks, says Deven Choksey of KR Choksey Securities. It is becoming extremely selective in picking up some of the good quality stocks into the portfolio and you are seeing some smart rate of return coming into them.

NIFTY 3-Month

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