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Market Report

Monday, 04-Mar-2013

NSE

  • The benchmark BSE index Sensex fell -0.21 percent, or 40.56 points, to end at 18,877.96 today, near its lowest close since Nov. 27 hit on Thursday. The broader NSE index fell -0.37 percent, or 21.20 points, to end at 5,698.50 today, closing below the psychologically important 5,700 level.

  • Sensex fell to near 3-month low today as global risk aversion sparked broad-based selling in domestic blue chips at a time when sentiment is already weak. European shares, the euro and oil prices all fell today as political stalemate in the U.S. and Italy and China's plans for tighter controls on its property sector hit sentiment.

  • The global uncertainty has come on the heels of broad disappointment over the 2013/14 budget unveiled on Thursday and weak October-December growth data, with investors expecting a rebound in markets if the Reserve Bank of India cuts interest rates later this month. After an ordinary budget, RBI policy would certainly be the next trigger to watch, but risks have gone up marginally in US and Europe, say experts.

  • Market patterns negative, aggressive selling pressure, says Mitesh Thacker. There is no sign of the midcap underperformance coming to an end in the near future, so, one has to be very careful especially trading on the midcap side, he adds.

  • Midcap not going to recover in a hurry, says Ashwani Gujral. This does not look like a bull market in any shape or form. What it looks like is that we may have a 5500-6000 type of a band happening here because in any bull market correction you do not have stocks falling 50%, 60%, 70%. So overall while we may be flat but it is still too early to say that we have found support and we will head up because on the upside clearly there is going to be pressure around 5750. Till we cross that zone I do not think it is wise to be long on the market, he adds.

  • Midcaps extended their fall today which is very disturbing, said Nipun Mehta of Blue Ocean Capital Advisors. Till recently, midcaps fell because a lot of the shares were pledged by promoters, but today there was selling across the table. The sell-off in most of these midcaps is probably coming out of margin calls or cases where there were significant losses in select portfolios and in order to pay up margins a lot of midcaps were getting sold, adds Mehta.

  • In spite of a steep fall in the market indices since the Budget, Deutsche Bank today maintained a positive view on the Indian equities, saying it sees the Sensex scaling 22,500 points by December on the back of a possible monetary easing, recovery in global growth and policy initiatives among others.

NIFTY 3-Month

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