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Market Report

Friday, 07-Nov-2014

NSE

  • The S&P BSE Sensex closed today at 27868.63, down 47.25 points or -0.17 per cent, while The 50-share Nifty index ended the day at 8,337.00, down 1.30 points or -0.02 per cent, as the bulls took a breather after an upward journey for six consecutive sessions.

  • The benchmark indexes edged lower today after setting records in each of the previous four sessions as investors took profits in recent outperformers with caution also prevailing ahead of monthly US jobs data. But analysts are not worried about the fall. They say that it is the right time for investors waiting on the sidelines to enter the markets.

  • According to analysts, the Indian markets are in for a big bull run and there is huge potential for markets to move higher from current levels. The market should not run up continuously. A little bit of consolidation at every stage is extremely healthy for the market and that is a welcome thing. This was a truncated week, but the bias is definitely positive, they say. According to analysts, correction or sudden dips are more of a short-term phenomenon and long-term investors should look at buying on every decline as the Sensex is in track to hit 30000 by December-end while the Nifty may hit the levels of around 8500 in the same period.

  • Aggressive long positions by the foreign institutional investors in Indian equities reflect their bullishness on hopes of a recovery in economy in coming years. Amid very high volumes, FII/FPIs remained buyers for the 6th straight session today after they bought equities worth Rs 1,413.34 crore on Monday, Rs 1,030.85 crores on Wednesday and a massive Rs 2537.13 crore today, as per stock exchange data. See our 'Market Statistics' page.

  • Globally, Asian shares except for Japan ended lower on Friday ahead of US employment data later today. European stocks edged higher today on hopes that the European Central Bank may announce monetary easing measures to boost growth in the euro zone. But the Indian Rupee lost further ground and was trading at Rs 61.64 to the US dollar compared to the previous close of Rs 61.41, at this writing.

  • Nifty could correct maximum by 130 points, says Mitesh Thacker. There is some kind of tiredness in the chart of Nifty, but clearly there is no treat of trend reversal. The short-term indicators have gone extremely overbought with the last six-seven days of rally and we might still pause for couple of more days and this level of 8300. The level to watch out on the downside would be roughly around 8270-8250. If that gets broken, another 70-80 points might happen on the downside, he says.

  • Expect Nifty to scale 8600-8700 levels in short term, says Ashwani Gujral. While the index probably now remains a bit sideways but individual stocks catch up, things which have not done well so far or which are not in the index. For the next few days we should remain in a range because the trend is very strong. You are unlikely to get big deep corrections but sideways correction is possible, a pause where everyday something or the other moves up. But clearly next Nifty target is closer to 8600-8700, he says.

  • Markets poised to go higher; only unforeseen events could derail ongoing rally, says Yogesh Mehta of Motilal Oswal. There is nothing wrong with the domestic scene right now. The global environment is supporting the Indian market, and pushing it new highs day by day. Today's correction is only a sectoral rotation. Leaving that aside, both the Nifty and the Sensex are continuing on an upward journey. There might, however, be unforeseen reasons that may cause the momentum to falter. But otherwise, it will be a sustained rally and the markets will keep on moving on the upper side, he says.

NIFTY 3-Month

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