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Market Report

Wednesday, 19-Nov-2014

NSE

  • The BSE Sensex finally closed at 28,032.85 today, down 130.44 points or -0.46 per cent. It touched a lifetime high of 28,294.01 and a low of 27,963.54 in trade today. Tracking the momentum, the 50-share Nifty index which rose to a record high of 8455.65 finally closed at 8,382.30 today, down 43.60 points or -0.52 per cent. It hit a low of 8,360.50 in trade today.

  • Our markets failed to build on opening momentum and extended losses for the second straight session and closed in the red as profit booking picked up in metals, power and oil & gas sectors. However, experts are of the view that this minor selling is normal as markets have already rallied over 33 per cent so far in the year 2014. So, minor profit booking or some bit of consolidation is healthy and the broader trend still remains intact.

  • Weakness in the global markets also weighed heavily on the bourses. Japanese stocks turned lower today as investors booked profits as they took stock of Prime Minister Shinzo Abe's decision to delay a sales tax hike. Hong Kong shares fell for the third consecutive day, and European stocks are trading mixed at last report.

  • There is some chance that we might see more correction, says Mitesh Thacker. If we look at the intraday charts there is some kind of sell signal, breakdown on the momentum indicators which suggest that if we start breaking below 8350 levels. If that happens there is a good chance that we will fall 100-125 points on the Nifty and head towards levels of around 8220 or so and would suggest traders to reduce any kind of long exposure, he adds.

  • Big money in any bull market is made on the upside, says Ashwani Gujral. Once the market starts getting into a correction, it could feel like we have come down a lot since individual stocks can fall and that should be the point when fresh buying is possible. But I do not think this is the big one, because that needs a lot of participation. Still, it is not a great participation where people are sitting on all kinds of long positions. People are just about limping back in and enough people do not hold stocks to take them too much lower, he adds.

  • Don't fear the market correction; this was long overdue, says Ambareesh Baliga. The sort of move that we have seen in the past couple of weeks, this is just a small correction which was overdue. So unless the markets really break that 8200 levels decisively, I do not think there is anything to be really to fear about as such. Clearly as of now for traders, it is like buy on dips market and I do not think it is time to sell and get out, he adds.

NIFTY 3-Month

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