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Market Report

Friday, 08-Aug-2014

NSE

  • After opening lower at 25,406.87, the 30-share Sensex dipped to 25,232.82 at one point before ending the day at 25,329.14, down 259.87 points or -1.02 per cent, from its previous close. The BSE barometer had lost 319 points in the previous two sessions. The 50-share NSE Nifty dipped below the 7,600 mark by plunging 80.70 points, or -1.06 per cent, to end at 7,568.55 today.

  • The S&P BSE Sensex plunged as much as 356 points in intraday trade today to close at nearly three-week low, tracking other Asian markets which were trading lower after US President Barack Obama authorised air strikes against Islamic militants in northern Iraq, said media reports.

  • Brokers said sentiments turned weak on foreign capital outflows that took weak cues from on worsening geopolitical tensions and the Rupee slumping to five-month low of 61.74 (intra-day) against the US dollar amidst rising crude oil prices. Globally, major stocks markets in Asia fell in the range of 1-2 per cent, while most of the European markets were down over 1 per cent in early trade as global sell-off spread.

  • Rising geo-political concerns have certainly put brakes on the rally seen in the Indian markets, but analysts at top brokerage firms are of the view that these concerns are short-term in nature and investors should not give too much weight to them as India remains to be in a structural bull-market.

  • We need to understand one thing that going ahead, India will outperform the world, said Sanjay Dutt of Quantum Securities. Obviously, we cannot be isolated. So there would be weakness here, but relatively, we will definitely do better. In fact, for whatever reason, capital would move here because Western markets are looking more uncertain over time. So India is going to be a place where money is going to continue to flow, he added.

  • Markets likely to trade in a narrow range in next 2-3 months, says Prashasta Seth of IIFL AMC. Upside could be not much from where we are at this point of time in the short term and similarly downside should not be more than 5-7 per cent below from where we are at this point of time. The markets should trade in a very narrow range over the course of the next two or three months and then after what happens on the monsoon and on some of the policy measures that the government is taking, will kind of decide the medium term trend of the market, he said.

  • Levels of around 7300 to about 7250 on downside possible, says Mitesh Thacker. A re-test of 7460-7480 looks very likely. The indicative direction has clearly turned down in last two-three days. The falling has picked up acceleration with the gap down today. Whether we will have one kind of breakdown or one time breakdown below these levels so 7450-7460 is of lot of importance. In case we break below that, we might even see levels of around 7300 to about 7250 on downside so I am slightly more bearish, he adds.

NIFTY 3-Month

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