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Market Report

Wednesday, 22-May-2013


  • After a better start at 20,220.35, the 30-share index fell by 49.37 points, or -0.25 per cent to 20,062.24 today. It had lost 174 points in the last two sessions. Similarly, the National Stock Exchange index Nifty fell below the crucial 6,100 level by losing 19.60 points, or -0.32 per cent, to close at 6,094.50 today.

  • Brokers said sentiment turned bearish as engineering major Larsen and Toubro's fourth quarter earnings missed the market estimates and its stock suffered a heavy loss of 5.57 per cent to close at Rs 1,517.10. They said a weakening rupee against the dollar and bearish trend in European region before Federal Reserve testifies on the outlook for the US economy further influenced the market sentiment.

  • On the global front, Asian markets ended mixed in trades today following a positive lead from Wall Street with Japan's Nikkei reaching a 5-1/2 year high, while the yen took a defensive stance ahead of the outcome of the Bank of Japan's (BOJ) policy meeting. Investors are now looking forward to US Federal Reserve chairman Ben Bernanke's testimony to US lawmakers and the minutes of the Fed's May meeting, both due later today for further clarification on stimulus measures and economic growth.

  • Market will possibly give up some more gains in the next few days, says Mitesh Thacker. I will maintain negative bias but with more of a range bound kind of outlook. We are losing momentum and therefore we could go into more of a range bound kind of an activity of about 200 points in the next few days. On the Nifty, we might slide down to about levels of 6050 to about 6020, he adds.

  • As long as the market does not break that 6000-6040 levels, we continue to be cautiously positive, says Ambareesh Baliga.

  • Once 6080 is broken and 6100 is given up decisively, there could be more correction, says Ashwani Gujral. Let us hope 5990-5970 holds on and that could be the target once 6080 is taken out. Market has no legs to scale higher levels right now - A strong market that was heading to new highs would not have broken 6100, adds Gujral.

NIFTY 3-Month

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