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Market Report

Friday, 08-Feb-2013

NSE

  • In a seven straight day of losses, the Sensex fell by 95.55 points, or -0.49 per cent to to close at 19,484.77 on heavy selling in last 30-minute of trade. This was the longest losing streak of the index since November 2011. The gauge had dropped 425 points in last six sessions. Similarly, the National Stock Exchange index Nifty fell by 35.30 points, or -0.59 per cent, to close at 5,903.50 today led by stocks of metal, realty and auto sectors.

  • The BSE benchmark Sensex today lost over 95 points on fag-end selling by investors concerned over economic growth and lower earnings by blue-chip stocks amid a weak Asian cues. Brokers said the investors remained cautious on lower gross domestic product projections and ahead of the inflation data next week.

  • On the global front, Japan's Nikkei share average dropped today to mark its first weekly loss in 13 weeks as sentiment was dented by gloomy comments from the ECB president on Europe's outlook. The euro hovered near a two-week low and European shares rose today after the European Central Bank rekindled expectations that it could again take the knife to interest rates.

  • Nifty shows first signs of weakness ahead of Budget 2013, say experts. The 50-share Nifty index closed below its long-term support level of 5950 for the second day in a row and registered its first intra-day breach of its psychological level of 5900 today. Nifty has corrected over 2 per cent so far in the month of February, indicating first signs of weakness ahead of the Budget 2013, they add.

  • Analysts hold the view that markets may face pressure in the upcoming trading sessions and more profit taking is expected till the time we do not cross the levels of 5930-5935. Investors are waiting for more reform push from the government in the upcoming Budget session which is widely expected to be a responsible one, they add.

  • Many stocks have corrected 10-30 per cent in last one month which suggests undertone for the market is weak and since the Nifty has slipped below its highs of January 2013, it suggests weakness, said A.K Prabhakar of Anand Rathi. If the Nifty slips below 5900 in the coming trading sessions or the Sensex below 19500, the markets can see 6-10 per cent correction in specific stocks as we head towards the Budget session, he added.

  • Unless and until the levels of 5930-5935 are being recaptured, the market should remain on the weaker side and we could see cuts of about 6-10 per cent on many individual stocks before the Budget 2013, said Mitesh Thacker in an interview with ET Now. What can happen in the meanwhile, the Nifty may test levels of 5830-5840 which was the low in the month of December when the entire consolidation took place, he added.

  • Sujit Deodhar of Wellworth Share & Stock Broking is of the view that the Nifty spot has broken its major support at 5950 levels and fresh shorts should be initiated for the downside target of 5795-5600 levels in a week or so. Technical indicators are in strong sell mode on daily and weekly charts witnessing for the selling to continue, he adds.

NIFTY 3-Month

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