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Market Report

Friday, 01-Feb-2013


  • The Sensex fell by 113.79 points, or -0.57 per cent, to close at 19,781.19 today. The gauge commenced the day higher on investors covering their pending positions. The index had lost 110 points in the previous session. Similarly, the broad-based National Stock Exchange index Nifty lost 35.85 points, or -0.59 per cent, to end at 5,998.90 today, dipping below 6,000 level.

  • Brokers said the market remained under pressure on investors booking profits from previous month's hefty gains. They said sentiment further dampened on reports of weak earnings by leading companies like Bharti Airtel and BHEL.

  • There were also concerns over growth slowdown in Asia's third-biggest economy after our country's manufacturing slowed to a three-month low in January. The HSBC Markit manufacturing Purchasing Managers' Index (PMI) for India fell to 53.2 in January, after surging to a six-month high of 54.7 in December.

  • Asian shares ended mixed on back of modest recovery seen in China. European shares were trading positive when reports last came in.

  • 5950-5930 is an important level, says Mitesh Thacker. I am looking for, first, a mild correction and then consolidation happening at slightly lower levels. 5950-5935 should hold, but we might not get immediate bounce back and it would be as again consolidation happening or subdued kind of market movement happening at lower ranges. Next couple of weeks the markets will be very dull, boring and possibly going through a minor downside trend.

  • Expect Nifty to fall by 100 to 200 points in short term, says Hemang Jani of Sharekhan. Clearly, it has been quite frustrating for a lot of traders in the market that we are in this range for a long time. So, we believe that there is going to be some amount of pressure on the market as it is not able to move up in a meaningful way and we are expecting a 100 to 200-point fall in the Nifty in the short run.

  • More stock specific movement is likely, says Sandeep Wagle of APTART Technical Advisory Services. 6000 will act as a support. In case that is taken out another 50-60 points on the cash Nifty, 5950. I do not think we will close below that and in case we do, we break 5950 convincingly. Then possibly we are in for a move down to 5800-5820. But as of now I would still say we will be between 5950 and 6100 over the next week or two, he adds.

NIFTY 3-Month

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