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Market Report

Monday, 29-July-2013

NSE

  • Sliding lower for the fourth day, the S&P BSE benchmark Sensex, which shed 555 points in last three sessions, fell further by 154.91 points, or -0.78 per cent to close at 19,593.28 today — its lowest closing value of 19,294.12 on July 10. On similar lines, the National Stock Exchange index Nifty fell by 54.55 points, or -0.93 per cent, to close at 5,831.65 today as banking stocks remained weak ahead of RBI monetary policy review.

  • The Indian markets remained under pressure and extended intraday losses in the last half-an-hour of the trade today. The 50-share Nifty index slipped below its crucial 200-DMA, led by sharp losses and profit booking in stocks in FMCG, metals, realty and the oil & gas sectors.

  • Disappointment from the quarterly results of most PSU counters and cautious stance by traders ahead of the Reserve Bank of India's (RBIs) policy review tomorrow led to a sharp correction in the markets, analysts said. The Reserve Bank of India's monetary policy tomorrow will be a key trigger for markets in terms of any cue on liquidity measures to support rupee. Investors remained wary of further liquidity tightening steps by RBI tomorrow, brokers said.

  • BofA-ML expects the RBI to hold interest rates in its policy meet on Tuesday, July 30. The global investment bank also expects the central bank to cut rates by 50bps in 2HFY13 if the INR stabilizes. The rupee above 59 had a choking impact on the Government of India and the Reserve Bank of India, although several policy measures were undertaken by the RBI to fight against all odds to sustain the rupee below 60 against the US dollar.

  • Trading was also on a cautious note ahead of the US Federal Reserve, the European Central Bank and the Bank of England meet later this week. Asian stocks ended lower today. Japan's Nikkei declined 3.4%. European stocks advanced for the first time in three days as companies reported better results.

  • Expect market to head towards 5700 in near term, says Mitesh Thacker. Unless and until something comes positive in the event and we do not get pass 5900, the bias should clearly be negative, says Thacker.

  • Nifty likely to break 5500-5600 support, say experts. The market is now getting ready to make a classical topping-out formation, whose target over a period of time will be again 4600-4800, they warn.

NIFTY 3-Month

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