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Market Report

Tuesday, 25-Nov-2014

NSE

  • The S&P BSE Sensex closed the day at 28,338.05, down 161.49 points or -0.57 per cent. It touched a high of 28,541.22 and a low of 28,217.50 in trade today. The 50-share index ended at 8,463.10, down 67.05 points or -0.79 per cent. It hit a record high of 8,535.35 and a low of 8,429.45 in trade today.

  • Our markets snapped a three-day winning streak and the Sensex witnessed the biggest single-day drop in nearly 6 weeks. The Nifty came under some pressure and closed the day below its crucial psychological level of 8500. The index hit a record high of 8535.35 earlier in trade today.

  • According to analysts, after the recent rally, a correction is overdue and a 3-4 per cent fall will be healthy for the market. However, they don't expect the slide to be steep as retail investors are waiting on the sidelines to enter the market. Even though benchmark indices have outperformed most of the emerging market peers and indices across the globe, but analysts still advice investors to scout for value picks and buy them on every dips rather than chasing high beta names.

  • Suggest to buy at lower levels in this market, says Deven Choksey. The government is likely to come up with the stake sale proposition in metals somewhere down the line in this financial year. From all perspective, some of these companies could give a good upside going forward. All you need is some patience and buying at lower levels and the market gives one an opportunity, he adds.

  • I do not think we are in such a zone that you can keep correction completely out of the radar, says Prakash Diwan of Altamount Capital. Very clearly, markets have run up ahead of fundamentals. While the valuations might not be questionably very high, you have certain pockets which are getting quite pricy. It will difficult to seek value at elevated levels but any dips should be bought into. The Nifty may correct 150-200 points but it will soon be absorbed and the upward momentum may begin, he says.

  • This rally is now getting fairly mature, said Ashwani Gujral. In the last two months, the rally has continued unabated. A lot of averages are way off the price so this is a bad time to get in. If you are in, it is good to basically hold and let the market run its course. If you are not in and buying at 8,600 then it is debatable what kind of upside you are likely to get. People may get stuck at higher levels. So just a bit of caution in terms of fresh entry but otherwise with a stoploss around 8,410 you can continue to hold on to current positions, he added.

NIFTY 3-Month

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