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Market Report

Wednesday, 03-July-2013

NSE

  • The Bombay Stock Exchange 30-share indicator, Sensex, resumed remarkably lower and continued to reel under pressure to end at 19,177.76 today, a fall of 286.06 points or -1.47 per cent. Yesterday, it had dipped by 113.57 points or -0.58 per cent. Similarly, the 50-issue Nifty of the NSE also tumbled by 86.65 points, or -1.48 per cent to end below 5800-mark at 5,770.90 today as rupee breaching the 60-mark and draft norms on banks' exposure to corporates with unhedged forex triggered all-round selling, amid weak global cues.

  • Fall in the rupee below 60-mark, slowdown in country's services sector activity in June, rising bad loans and capital outflows also hit the market sentiment, said traders. Concerns over the rising oil prices that may widen the current account deficit, impacted negatively as it may prevent RBI from cutting interest rates later this month, they added.

  • Asian stocks ended lower as concerns about growth in China's services sector added to selling pressure, amid investors adopting a cautious stance ahead of US data later this week. European stocks were trading sharply lower following crisis in Egypt, political turmoil in Portugal and downbeat data from China.

  • Expect market to remain flat or in a narrow range for next 6 months, says Nirmal Jain, Chairman, India Infoline. The markets will remain flat because there are still many foreign investors who are looking at India from a longer-term perspective. There was a bit of a recovery and more a short covering and people became hopeful. However, things are not getting any better, he adds.

  • Nifty may not break 5550-5600 on the downside, says Sandeep Wagle. But breaking 5700-5680 looks very likely. There is a gap in the Nifty at around 5680-5690, he adds.

  • Buy on downside till Nifty trades above 5810-5820, says Mitesh Thacker. We need to start capturing 5800, 10-20 higher on the upside and then signal that possibly that one day-two day of volatility is being absorbed, he says.

  • Expect market rallies to attract selling from both FIIs & domestic players, says Ashwani Gujral. Now whether we can have another weak attempt on the upside, I do not think that is worth playing for because any rallies will attract a lot of selling, he says.

NIFTY 3-Month

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