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Market Report

Tuesday, 09-Apr-2013


  • After rising nearly 128 points in early trade on positive global cues, the BSE benchmark Sensex today erased all initial gains and fell for the 5th straight session by losing 211.30 points, or -1.15 per cent to 18,226.48, its lowest level since September 13, 2012. The gauge rose to 18,565.56 at the outset. In the last four sessions, the Sensex had lost over 603 points. Similarly, the broad-based NSE Nifty dipped below 5,500 points level by losing 47.85 points, or -0.86 per cent, to close at 5,495.10 today. The index touched the day's high of 5,603.05 and low of 5,487.00 in intraday.

  • Brokers said the market remained in bearish on fears that companies might come out with disappointing fourth quarter earnings beginning later this week, triggering selling by foreign funds and other participants. They said selling pressure was strong despite firming global trend.

  • The Nifty extended losses for fifth consecutive session and closed below psychological 5,500 mark after foreign institutional investors turned sellers in Indian equities. FIIs have sold equities worth Rs 1,107 crore in the past five trading sessions, as per data released by SEBI.

  • In Asia, Japan's Nikkei average ended flat today after rising to its highest level in nearly five years, as investors cashed in gains on stocks that had stellar performances after the central bank unveiled massive stimulus moves last week to revive the economy. European equity markets rose in early trading, led by mining stocks as investors hoped for more accommodative monetary policy from China following benign inflation data, and after US firms posted solid earnings.

  • The domestic political and the economic overhang obviously is taking its toll on the markets, said Mayuresh Joshi of Angel Broking. Overall lack of liquidity is creating some amount of ripple effect in terms of aggressive selling, he added.

  • Market has broken almost all the support levels in the last few sessions, said Shrikant Chouhan of Kotak Securities. It is well below its 200-DMA of 5,645, which indicates we are in a bear market. It failed to hold on to support of 5,600 and fell from there to close below 5,500. Ideally, it looks like the market is headed for 5,350 which is 50 per cent retracement from 4,770 (low of December 2011) to 6,110 (high of January 2013), said Chouhan.

  • Another 50-60 points down on Nifty can't ruled out, said Prakash Diwan. We could probably test lower levels but intermittently another 50-60 points down on the Nifty can't ruled out, he added.

  • Markets will keep drifting lower, says Ashwani Gujral. Till they are done with their selling, no support is going to hold and day after day even on positive global cues, he says.

NIFTY 3-Month

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