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Market Report

Monday, 30-Sept-2013

NSE

  • After opening 83 points down at 19,643.89, the 30-share Sensex slipped for the major part of the session. It briefly tried to reverse the trend but relentless selling pressure forced it to touch day's low of 19,320.73, before settling at 19,379.77 -- down 347.50 points or -1.76 per cent. The index had lost 166.58 points on Friday. The broad-based National Stock Exchange index Nifty dropped by 97.90 points, or -1.68 per cent, to close at 5,735.30 today.

  • The Nifty extended losses for the second straight session today and closed below the important technical indicator of 200 exponential moving average (5,751) for the first time since September 6, 2013. The market has turned bearish and is likely to drift lower to the 5,500 levels in the absence of positive triggers, say analysts. Weak global cues and subdued corporate earnings are likely to keep the bulls under check. Markets ended nearly 2% lower also on worries over a probable US government shut down after Monday.

  • A political faceoff in the US over its government's proposal to raise country's debt ceiling is expected to keep stock investors world-wide, including in India, on the edge in the days ahead. Economists and analysts said failure to increase the debt limit by October would result in the US defaulting on its loans, which could potentially damage sentiment in global financial markets. In Asia, all markets except China closed in the red. European shares were also trading lower amid political tension in Italy coupled with the US debt ceiling crisis.

  • The rupee pared losses banks sold dollar for their custodial clients which was trading at 62.60/dollar at 3:50pm, after hitting day's low of 62.99/dollar.

  • Unlike last month, this month we should see at least 3-5 per cent fall in the index, say analysts. Once the corporate results season starts, we will see a lot of negative news. Indicators are already there in poor corporate income tax collections as well as excise duty collection in Q2. There would be fiscal concerns as well. Volatility would increase with a negative bias, they add. Downward pattern is confirmed as the Nifty breached the 5,800 level decisively. The measuring implication from the pattern suggests a target of at least 5,500, they add.

NIFTY 3-Month

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