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Market Report

Thursday, 07-Feb-2013

NSE

  • Sensex, the 30-share index, ended at 19,580.32 today, down 59.40 points or -0.30 per cent. It touched a high of 19,702.56 and a low of 19,540.08 in intraday trade. The gauge had lost 366 points in last five trading sessions. The Nifty closed at 5,938.80 today, down 20.40 points or -0.34 per cent. It touched a high of 5,978.50 and a low of 5,927.60 in intraday trade.

  • Benchmark indices have closed the trading session on a lower note as Government disappointed the street by sharply lowering the GDP forecast and subdued global markets. The government today pegged the FY13 GDP growth at 5% against 6.2%, year-on-year (YoY), the lowest in a decade. It sees manufacturing growth at 1.9% vs 2.7% YoY, and services growth at 6.6% against 8.2%.

  • Brokers said the market remained under pressure for the last five trading session on fears the government efforts might fail to narrow down the budget deficit. They said a weak trend in the Asian region and lower opening in Europe as investors await Chinese economic data further influenced the market sentiment. Japanese shares came off a more than four-year high today as investors booked profits. The euro, German bonds and shares steadied today as investors awaited the European Central Bank's policy meeting later in the day.

  • Meanwhile, the offer for sale of the government's 9.5 per cent stake in NTPC was over-subscribed. By 03:40 pm, the offer received bids for 132.8 crore shares compared to 78.3 crore shares on offer. This will help the government fetch close to Rs 11,400 crore.

  • The Nifty index has closed below its key long term support level of 5950 which indicates that the index may witness further selling pressure and may slip towards 5795-5600 in coming weeks if the trend continues, says Sujit Deodhar of Wellworth Share & Stock Broking. Technical indicators on daily charts are negative indicating the weakness to continue and any rise from here should be sold into, he added.

  • The market has broken down decisively below its 50-day moving average and as far as I am concerned we should now head towards the 100-day moving average which is around 5800-5810, says Ashwani Gujral. However, it remains a bit difficult to go short on the market right now because we do get these whipsaws and tomorrow we might see that we are still in a 'bull market' and advises investors to buy on declines, he added.

  • Some Analysts are not convinced of a breakdown in the Nifty. Certain Analysts still feel that although markets ended below its crucial levels but shorting markets might not be the right way to move forward, reports ETNow. Midcap stocks have been witnessing a roller coaster ride. However, they fell sharply in the last few sessions, raising concerns about investors' conviction in them, said these Analysts.

NIFTY 3-Month

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