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Market Report

Thursday, 08-May-2014

NSE

  • Nifty, the 50-share index, closed at 6659.85 today, up 7.30 points or +0.11 per cent. It touched a high of 6,688.40 and a low of 6,638.55 in intraday trade today. The S&P BSE Sensex ended at 22,344.04, up 20.14 points or +0.09 per cent. It touched a high of 22,443.13 and a low of 22,277.04 in intraday trade today.

  • Our markets ended a choppy session on a positive note after paring most of the intraday gains. Slow-down in inflows from foreign institutional investors (FIIs) and profit booking by domestic investors are likely to keep the market subdued till election results are out.

  • Investment managers are advising investors to book profits partially which could explain the recent lacklustre movement on the index. Retail investors should lower their weightage of stocks in their portfolio and cut down their leveraged bets, given the prospect of higher volatility in the run-up to the poll results day - May 16.

  • Investors are cautious ahead of a crucial event that occurs once in every five years. It was seen in 2004 and 2009 that actual poll outcome was different than what was being largely anticipated and market hit circuit limits on both occasions. Investors anticipate an NDA-led victory this time, failing which a massive correction is expected. So, they are extremely cautious this time ahead of May 16 and instead booking profits at higher levels now when they still can.

  • People will take fresh positions on market based on exit polls, says Jitendra Arora of ICICI Prudential Life Insurance. Most of the people are already positioned, as they wanted to be, before the election results are out. Now, we may see another hectic round of activity perhaps on May 13, that is after the exit polls are declared, when people will take positions on either side, depending upon what the exit polls indicate. Then finally they will come in after May 16, he adds.

  • 6650 mark crackdown may not happen immediately, says Sandeep Wagle. Yesterday we were of the view that 6650 will be held on to and that did happen today. But now it is very clear that selling is emerging at higher levels. As we are nearing the event one thing is for sure that there is certainly nervousness is creeping in. If you ask me whether we will crack down 6650 and move down 100-150 points immediately -- that may not happen, he says.

  • The rupee has remained firm intraday after clocking one-month high of 59.95 per US dollar earlier in the day. It closed at 60.135/145 on Wednesday. It is the top performer in Asia today even as the Asian currencies trade mixed. Analysts are of the view that the Indian currency is taking cues from other global currencies which have appreciated lately. Despite the low FII inflows, the currency has moved up but the gains won't last long, they say.

NIFTY 3-Month

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