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Market Report

Tuesday, 06-Jan-2015

NSE

  • Sensex, the 30-share index, finally closed at 26,987.46 today, down 854.86 points or -3.07 per cent. It touched a high of 27698.93 and a low of 26,937.06 in trade today. The Nifty ended at 8127.35 today, down 251.05 points or -3.00 per cent. It touched a high of 8327.85 and a low of 8111.35 in trade today.

  • The broader NSE index recorded its biggest daily percentage fall since September 3, 2013, when the rupee was still reeling from its worst market turmoil since the 1991 balance of payment crisis, Reuters reported. The BSE index fell as much as 3.2 per cent in intraday trade to break below its crucial psychological level of 27000 for the first time since December 18, 2014, triggered by all-round selling from operators following a sharp fall in the Asian markets as oil prices slipped to a fresh 5-1/2 year low.

  • The volatility in the market will continue till January 25, the day elections are held in Greece. The eurozone crisis may come to the fore if left-wing rooted Syriza party comes to power. If Alexis Tspiras, leader of Syriza, wins the elections, it will result in flight of funds from global markets in search of safer investment options. This would result a further sell-off in global equities. Global funds will exit quickly in a flight to safety from emerging markets back to their safe havens in the US and even in Europe, if the Greek election results throw up large-scale uncertainty about the future of the Euro, say experts. Such exit of funds will cause not only turbulence on the stock market but also in the currency market. The rupee would fall sharply, imports would become more expensive and inflation that had seemed tamed till recently will once again start acting up, they add.

  • Diffcult for Nifty to find support at 8050 level, says Ambareesh Baliga. I do not think you should try and catch the falling knife. We need to see whether it takes support at about 8000-8050 levels, which I doubt it would. The last time it took a good support at those levels. I would wait for levels of closer to 7700-7800 levels to make fresh purchases. That is the time to start deploying your money, he adds.

  • Suggest to get into cash once Nifty breaks 8000, says Ashwani Gujral. It appears that we are heading fast towards 7950 and maybe even lower. Once we start breaking 8000, you will see some more carnage happen on portfolios. As far as going short, Bank Nifty is due for a decent correction. We will finally see the banks also crumbling under that weight because that is where people have profits, he adds.

NIFTY 3-Month

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