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Market Report

Wednesday, 20-Mar-2013

NSE

  • The Sensex closed 123.91 points lower, or -0.65 per cent, to 18,884.19 today, a level seen on March 1. The index had lost over 562 points in last three sessions. Similarly, the broad-based National Stock Exchange index Nifty fell below 5,700 level, by losing 51.55 points, or -0.90 per cent, to close at 5,694.40 today.

  • Brokers said market sentiment turned bearish after the DMK withdrew support to the Congress-led UPA government on Sri Lankan Tamil issue and raised fears of halt in the ongoing economic reforms. They said the investor confidence also dampened as the Reserve Bank of India had yesterday, while cutting short-term lending rate, said that there is limited room for further monetary easing.

  • On the global front, share markets across most of Asia and the euro struggled after a bailout plan for Cyprus fell into disarray, but losses were limited as investors clung to hopes that a last minute deal will be hammered out.

  • Not expecting a strong bounce back, says Mitesh Thacker. Given the fact that the trend is on the downside, we should expect lower levels. But, we have managed to hold on 5680 for a long time and that is an important support area, he adds.

  • Not a good idea to buy a falling market, says Ashwani Gujral. We have started some kind of bear market. Just stay away from buying till the market turns and it is not likely to turn in a hurry because something is going wrong. Use rallies to exit the market. Bank Nity is now trading below it is 200-day moving average. It has confirmed a head and shoulders pattern, he adds.

  • Avoid taking long positions, use rallies to sell, say top Analysts. Indian markets have taken have taken a U-turn and have slipped below their key support levels largely on account of political uncertainty and the Reserve Bank of India's hawkish stance on future rate cuts. If market fails to honor its key support levels of 5700 on closing basis for few more session, chances are that the market may fall even further, according to analysts. The market is likely to head much lower in the medium term, probably 5150-5200 and all rallies should now be used to sell, they say.

NIFTY 3-Month

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