IntradayTrade dot Net dot IN
Market Report

Monday, 15-Dec-2014

NSE

  • Nifty, the 50-share index, dipped below the crucial 8,200-mark to close at 8,219.60 today, down 4.50 points or -0.05 per cent. It touched a high of 8,242.40 and a low of 8,152.50 in trade today. The S&P BSE SEnsex ended at 27,319.56 today, down 31.12 points or -0.11 per cent. It touched a high of 27,392.18 and a low of 27,105.04 in trade today. The barometer lost 480.42 points in the previous two sessions.

  • The Nifty extended losses for third straight session and closed in the negative territory following weakness in tech, capital goods and power sectors together with selling pressure after October industrial production contracted sharply by 4.2 per cent and a weak trend in the Asian region. Later, there was a small recovery after official data showed that wholesale price index-based inflation fell to zero level in November.

  • In addition, a weak Rupee which hit nearly 11-month low of 62.92 against the dollar (intra-day today) also weighed on the market sentiment. Analysts are of the view that it can slip past 63 per dollar in the near term. Further, investors will also be eyeing the outcome of the two-day Federal Open Market Committee (FOMC) monetary policy review which begins today.

  • Going forward, we believe that you cannot rule out another 2% or 3% correction, but from an investment point of view if you are waiting on the sideline, looking at the correction in some of the large cap names, then we believe at least 25-30% you can initiate at current levels, says Gaurang Shah of Geojit BNP Paribas. It looks like we have hit the bottom and we could see some amount of pullback on the market and some pleasant announcement from the government side in terms of Insurance Bill and other bills coming through should excite the market, he adds.

  • It is an opportunity for long-term investors, and if one needs to really stagger, I cannot say that the correction is over and we could see another 3-4% fall from here, says Neeraj Deewan of Quantum Securities. There is always a possibility that the market tests 8000-8050 levels. So keep some money to invest at lower levels also, but there is a good opportunity to invest in the market currently, he adds.

  • Expecting a bounce back to 8270, says Sandeep Wagle. I do not expect 8300 to be broken. That is a very strong level of resistance. So a 100-150 point bounce back in a couple of days' time. On the downside, Nifty-8150 was a very critical and a strong support, which we felt should not have been breached and it did not. But it is a matter of time before we test 8040-8050, he says.

NIFTY 3-Month

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