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Market Report

Tuesday, 22-Apr-2014

NSE

  • The Sensex ended the day at 22,758.37; down 6.46 points, or -0.03%; while the Nifty closed the day at 6,815.35; down 2.30 points, or -0.03%. Indian stock markets ended in the red today, but made fresh all-time highs. The Sensex made an intraday high of 22,853 in today's intraday trade. The broader 50-stock Nifty made new life high of 6838.00 in intraday.

  • Markets closed flat with negative bias as investors turned cautious ahead of the expiry of April derivative contracts on tomorrow. This decline was following a near 500 point rally over the last two trading sessions.

  • The market has been choppy in April series and the new series is expected to be no different. Election results on May 16 will decide the course of the market, and till then traders can carry their long positions, say experts. The Nifty is getting support from banks and both the indices are near important levels, say analysts.

  • The Rupee has turned weak and was trading at 60.81 after hitting 60.8250, its lowest since March 24, on the back of heavy dollar demand from oil importers. The unit closed at 60.59/60 on Monday, after posting its biggest single-day loss in more than a month.

  • In Asia, extended weakness in Chinese shares, driven by worries over liquidity and earnings, put a brake on other Asian stock markets today despite Wall Street stocks rallying into a fifth session. Japan's Nikkei share average began the day with a small gain and eventually fell -0.4 percent.

  • The Nifty is quoting at 6,800, at about 15 times one year forward multiples which are the average valuation at which the market has quoted in last 10 years, says Sanjay Dongre of UTI Asset Company. From the valuation perspective, it is not that the market is expensive neither it is cheap. According to him, it is difficult to predict how the market is going to behave in the next one month but there are a lot of hopes on election results.

  • There has been some drop in momentum but I do not think it is like as of now signaling weakness, says Mitesh Thacker. The Bank Nifty and the Nifty are at important weekly and monthly levels and we have not seen any strength of breakout happening. On the index, it would be wise to wait for a couple of days. And the CNX IT is yet to complete this consolidation which has been broadly 400-point kind of range. Once we start getting past 6850, that could be a good trigger in the short term, he added.

NIFTY 3-Month

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