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Market Report

Thursday, 14-Feb-2013

NSE

  • After a better start at 19639.83, the Sensex tumbled by 110.90 points, or -0.57 per cent to close at 19,497.18 as investors adopted a cautious stance, wiping a major portion of the 147 point gained in past two days. The broad-based National Stock Exchange index Nifty lost 36.00 points, or -0.61 per cent to close at 5,896.95 today, after touching the day's high of 5,940.20.

  • Our markets today shrugged off positive cues from easing inflation numbers and fell sharply snapping a two-day rally. The market discounted better-than-expected WPI January inflation data which slipped to three-year low at 6.62 per cent. After disappointing IIP numbers but an easing in inflation rate, investors are in a state of uncertainty regarding rate cuts in the near future, said experts.

  • Nifty may take support at 5,800 ahead of Union Budget, say experts. We are bearish on the market and expect both the largecaps and midcaps to correct in the medium term. All the momentum indicators are on sell side. Overall strategy would be to sell on rise, they say. The technical chart patterns, following the recent sharp correction, are indicating a bearish set-up, say analysts.

  • Market is breaking through the lower-end, says Ashwani Gujral. From 5900, you would have expected that you again try to reclaim 6100, instead we have not even crossed 6000, and the market is breaking through the lower-end and given these 8-10% falls on the midcaps that generally is not bull market behaviour, he adds.

  • 50-60 point upside is still possible, but broadly the view remains downside with 2-2.5% kind of cut happening in the index, says Mitesh Thacker. There are three important levels to watch on the downside. Tomorrow if we start trading below 5880 I should call for an immediate cut of about 1% to about levels of 5830 or so, and below that 5760-5750 is what I am looking at, he adds.

NIFTY 3-Month

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