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Market Report

Friday, 26-Apr-2013


  • The 30-share Sensex resumed lower at 18,989.78 and dropped to 18,989.78, but recovered afterwards to hit a 6-week high of 19,434.85 before ending the week at 19,286.72, a net gain of 270.26 points, or 1.42 per cent, from last weekend's level. The BSE benchmark has gained a hefty 1,044.16 points, or 5.72 per cent, in the last two weeks. The NSE 50-share Nifty also rose by a healthy 88.35 points, or 1.53 per cent, to finish the week at 5,871.45. The broader index has gained 342.90 points, or 6.20 per cent, in the last two weeks.

  • Brokers said the sentiment was bolstered expectations that easing inflation and weak commodity prices might prompt the central bank to cut interest rate in an aggressive manner in its monetary policy meeting on May 3. Persistent capital inflows from foreign funds also boosted the market sentiment. Foreign Institutional Investors (FIIs) have invested Rs 3,045.95 crore during the current week, including the provisional figure of April 26.

  • Adding to the optimism will be European Central Bank meet next Thursday amid expectations the central bank will react to the recent deterioration in euro zone's economy by cutting interest rates next Thursday.

  • For the Nifty to continue its upmove a '50' basis point rate cut is required and anything less than that may trigger a sharp correction in the markets. Further, breadth of the market in the previous week weakened on account of profit taking pressure. The likely range of the Nifty till then will be 5,800 to 5,950. In the event of less than a 50 basis points rate cut, the upward momentum is likely to be rudely jolted, say experts.

  • Market is giving signals of consolidation, says Mitesh Thacker. We have now met the important supply point of 5950, so that could be short term cap. CNX IT has not yet shown reversal, which I was expecting. Since the trend is not revising, we must assume that the short term outlook remains negative. Nifty might actually extend this consolidation which would be now in the range of about 5790-5780 on the lower side to about 5950 on the upper side.

  • Expect market to consolidate in near term, says Ashwani Gujral. The market is getting into a consolidation which is good that will allow new buyers to come in, said Gujral.

NIFTY 3-Month

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