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Market Report

Friday, 26-July-2013

NSE

  • The Sensex, which had lost 498 points in past two days, declined further by 56.57 points, or -0.29 per cent, to 19,748.19 -- the lowest close since 19,676.06 on July 11. The broad-based National Stock Exchange index Nifty dipped below another crucial level of 5,900 this week by losing 21.30 points, or -0.36 per cent to close at 5,886.20 today.

  • The BSE benchmark Sensex today slid for the third straight day by losing 56.57 points to a fresh two-week low amid nervousness in rate-sensitive sectors ahead of the RBI credit policy review next week.

  • Brokers said investors refrained from creating major positions before RBI credit policy scheduled on Tuesday, July 30. They also said market participants feared that the RBI's recent liquidity tightening measures to curb weakening rupee might hurt economic growth prospects in the short-term. Movement of rupee, trend in overseas fund investment will also be important for the domestic equity markets.

  • Reserve Bank of India's monetary policy review and corporate earnings from blue-chips like ICICI Bank and Bharti Airtel will be among the key driving factors for stock markets this week, say experts. It is widely anticipated that the RBI may keep policy rates and the cash reserve ratio unchanged. Stock markets are likely to remain range-bound ahead of the policy review, analysts said. Any large deviation from expected values will have strong impact.

  • Since various indirect measures, recently announced, appear to be working, the RBI would likely prefer a wait and watch approach this time. The RBI last week took additional steps to tighten liquidity in a bid to curb exchange rate volatility. The rupee, as a result, continued its upward march for the third straight week, rising by 31 paise to close at one-month high of 59.04 during the week under review.

  • Will look at shorting opportunities around 6,000, says Mitesh Thacker. That is the basic tactical approach we will try for trading for the next few weeks, says Thacker.

NIFTY 3-Month

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