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Market Report

Monday, 20-May-2013

NSE

  • After a steady start, Sensex touched intra-day high of 20,443.62 but emergence of profit-selling in some heavyweights dragged 30-share index to end 20,223.98 today, a fall of 62.14 points, or -0.31 per cent. Similarly, the broad-based National Stock Exchange index Nifty, after touching a psychological 6,200 level, fell by 30.40 points, or -0.49 per cent to close at 6,156.90 today.

  • This is the first time in five sessions the Sensex ended in the negative terrain. It had climbed 595 points in past four sessions to touch highest levels since January, 2011. Traders said investors and funds were encashing the recent upsurge in particular sectors and this 'technical correction' is good for the market health. Banking stocks corrected after they gained recently on hopes of a rate cut while pharma shares slid on fears the new pharma pricing policy may hurt profits, they added.

  • On the international front, rising optimism about global growth pushed world shares to a near five-year high today, while comments from Japan's economy minister that consumers could suffer if the yen falls further lifted it off a 4-1/2 year low. Data last week that showed US consumer sentiment at its strongest in nearly six years continued to support equity markets.

  • Profit booking might happen at these levels, says Mitesh Thacker. If there is some kind of a break below those levels then we might see some kind of a slightly more stronger profit booking, says Thacker.

  • Good time to buy stocks, says Ashwani Gujral. This is the opportunity to get into the market rather than out because what you will see is flat sideways type of consolidation, says Ashwani.

  • Nifty likely to hit all-time high of 6357 in two weeks - The bulls now seem to be gunning for the all-time high of 6357 and may actually scale that peak in the next two weeks, says Shardul Kulkarni.

NIFTY 3-Month

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