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Market Report

Friday, 10-Oct-2014

NSE

  • Sensex, the 30-share barometer, which had gained 390.49 points yesterday, fell by 339.90 points, or -1.28 per cent, to 26,297.38 today, with all the sectoral indices, except IT and Teck, ending in negative zone with losses up to -4 per cent. On similar lines, the National Stock Exchange index Nifty struggled to maintain the 7,900-mark and ended 100.60 points, or -1.26 per cent, down at 7,859.95 after dipping to 7,848.45 during the session.

  • Benchmark shares indices shaved off most of the previous session gains amid weak global cues even as Infosys surged 6.68 per cent on the back of better-than-expected second quarter earnings and its new chief executive Vishal Sikka's vision to re-emerge as the IT sector's bellwether through consistent profitable growth. Further, investors have turned cautious ahead of the August industrial production data due later during the day.

  • Brokers said besides profit-booking by speculators, a lower closing on other Asian markets and a subdued opening of the european mkarkets on growing concerns about the global economy as the head of the IMF warned that Euro-zone could slip into recession, influenced the trading sentiment here. They said, however, rally in Infosys on the back of good second quarter earnings, cushioned the fall in the benchmarks.

  • Meanwhile, foreign investors continue to be net sellers in our markets. See our 'Market Statistics' page. In line with other Asian as well as European markets, the Indian markets are also facing global jitters, which most analysts think are more of a short-term phenomenon and the broader trend remains on the upside. Signs of recession in Europe, slowdown in China and uncertainty over the US Federal Reserve interest rate hike kept global investors on the edge over the past couple of weeks.

  • Nifty can head down towards 7700, says Ashwani Gujral. Globally this is a period of very high volatility. I would watch 1900 on the S&P now. The reason is that, that was the intermediate bottom from where the recent rally started. If 1900 is not held on the S&P 500, which is about 20 points away from here, then there will probably be a global correction. In this kind of scenario, there could be more correction if we are not able to sustain 7900 which is the 50-day moving average. So chances are that we could possibly head down towards 7700, which is the 100-day moving average and possibly the next support level, he says.

  • Market to remain choppy, says Mitesh Thacker. On the Nifty, the level which we are watching currently is about 7820. If that breaks on a closing basis, then we might look at some more decline happening in the short term. The structure today has been that yesterday's gap was filled, which is not a very positive sign and yesterday's buy signals were also absorbed. So in case 7820 fails to hold, then sometime in the middle of the next week you might get an indication of further declines. But till then to me, it remains a choppy market between 7820 and 7960, he says.

  • After market hours today: Industrial production (IIP) growth slowed down to five-month low of 0.4 per cent in August mainly due contraction in manufacturing output and lower offtake of consumer goods. IIP for July was 0.41 per cent. The factory output, as measured by the Index of Industrial Production (IIP), had also grown at a meagre rate of 0.4 per cent in August, 2013.

NIFTY 3-Month

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