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Market Report

Tuesday, 09-Sept-2014

NSE

  • The BSE Sensex, after shuttling between 27,328.27 and 27,177.09, ended with a loss of 54.53 points, or -0.20 per cent, to end at 27,265.32 today. Yesterday, the 30-share bluechip benchmark had ended at its all-time closing high of 27,319.85 after hitting intra-day high of 27,354.99. On similar lines, the NSE Nifty lost 20.95 points, or -0.26 per cent, to close at 8,152.95 after moving between 8,126.50 and 8,174.55. Its previous all-time closing high of 8,173.90 was hit yesterday after touching intra-day record high of 8,180.20.

  • Retreating from record highs, the Sensex and the Nifty today fell on profit-booking in recent out-performers. Midcaps and small caps continued to attract buying. Recovery in global markets and easing crude oil prices further boosted market sentiment, but limited upsides due to profit booking and indecision at higher levels. The mood seems to be cautious as participants were seen keeping positions restricted in view of the hearing of coal blocks allocation case in the Supreme Court, brokers said.

  • Globally, trend in other Asian markets remained mixed and the European markets were weak in opening trade. The Indian rupee continued to trade weak after the dollar firmed up against major Asian currencies and dollar sales by corporates waned. Meanwhile, state-owned banks are seen buying the US dollar, likely on behalf of their importer clients. The currency was trading at Rs 60.56 compared to its previous close of Rs 60.29.

  • Markets may see 5-7% correction anytime soon, says Hemang Jani of Sharekhan. The sentiment is much better. The earnings momentum could pick up as the business confidence is good and the risk appetite is coming back. We may see a 5% to 7% correction happening anytime, but overall we continue to be positive on the broader trend.

  • Markets will move up if earnings growth trajectory remains intact, says Nitin Jain of Kotak Mahindra. We would be happy if there is a little bit of correction in the market. But the underlying story remains intact. We may have a little bit of correction in the market, but that does not take away the longer-term story. We are not worried about a small correction in the market, but as long as the long-term picture remains intact, these corrections will be good to add to the India exposure.

  • Expect Nifty to cross 8200 levels soon, says Vineet Bhatnagar of PhillipCapital. I am not so sure when it will happen, though there is some level of complacency in the markets right now and they are trading at all-time highs. There is complacency if you read the volatility in the market and therefore it should cruise past 8200 sooner than later. There is complacency from the point of view of the professional traders and the institutional money that is coming in. The top, which will be followed by a deep correction, is still farther away, he says.

NIFTY 3-Month

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