IntradayTrade dot Net dot IN
Market Report

Tuesday, 04-Feb-2014


  • Late buying in bluechips, mainly banking, FMCG and telecom, helped the Sensex bounce back from lows and close marginally up by 2.67 points, or +0.01 per cent, at 20,211.93 today. Earlier in the day, the 30-share barometer had plunged by 246 points to 19,963.12 points, a level last seen on October 9, 2013, in line with weak global markets.

  • The broad-based National Stock Exchange index Nifty closed down by 0.90 point, or +0.01 per cent, at 6,000.90, after touching a low of 5,933.30. The indexes recovered from four-month low levels in day trade to end flat on value buying by investors in fundamentally strong stocks amid weak global trends.

  • A sell off emerged in global markets due to fears of slowing economic growth after weak manufacturing data in China, the US and the UK. Brokers said the MSCI Asia Pacific Index touched its lowest level in five months as weaker-than-expected growth in the US triggered a selloff in global markets.

  • The rupee was trading weak due to dollar buying by importers and weakness in other emerging market currencies globally against the dollar. At 13:25 pm, the rupee was trading at Rs 62.66 compared with previous close of Rs 62.58.

  • This is more than the China factor. It is basically weight reduction which is happening in index stocks; and that is where you are seeing a larger fall, says Deven Choksey of KR Choksey Securities. IT stocks are cracking, and that is where market indices are coming down, he adds.

  • The good thing is that we have kind of managed to find feet or find some support around the levels of 5970 which is also the 200-DMA for Nifty, said Mitesh Thacker. The index did slip below 200-DMA intraday, but has recovered; so my sense is that maybe one leg of the decline is coming to an end. However, the overall structure has not changed much but very clearly these are support areas and strong support areas around 5970, he added.

NIFTY 3-Month

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