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Market Report

Monday, 07-Jan-2013

NSE

  • Ending the four-day rally, the Sensex closed 92.66 points down, or 0.47 per cent, to 19691.42 led by stocks of capital goods and realty, while a rise in auto and metal stocks capped the losses. The Index had gained 358 points in the last four trading sessions and reached a two-year high. The wide-based National Stock Exchange index Nifty lost 27.75 points, or 0.46 per cent, to end at 5988.40 today.

  • Markets erased early gains to end near the day's low as investors booked profits in select sectors. The Sensex had opened higher on hopes of global growth recovery in US after better-than-expected economic data.

  • Brokers said the market remained under pressure as cautious investors indulged in profit-booking from recent star performers, amid a weak global trend. They said a weakening trend in the Asian region and lower opening in Europe led investors to reduce their positions before any technical correction. Market participants adopted a wait-and-watch policy before the beginning of the earning season, starting with Infosys on January 11, they added.

  • Meanwhile in Asia, the Nikkei slipped nearly 1% to 10,599. All other major indexes were also in the negative zone and added to those losses on today. European shares were trading mixed as investors booked profits after recent gains.

  • Structurally markets looks very promising for upside, but on short term it is likely to consolidate in range of 5930 to 6100 levels, before we get cues from earning session, said Navneet Daga, Derivative Analyst with KR Choksey Securities.

  • Nifty is going for some kind of a deep correction, said Ashwani Gujral. Market does not have any further strength immediately before it moves to lower level and builds fresh strength to take 6000 out decisively. There is no way you can stay out so the idea has to be to stay long and keep a 5970 type of stop loss on a cash Nifty basis and hope that at some point Nifty breaks out of 6020, he adds.

  • Markets has been rewarding break outs in the individual strength, says Mitesh Thacker. Now we are watching very closely support levels of 5985 to about 5970 on the spot Nifty that is where just below 5970, he adds.

NIFTY 3-Month

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