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Market Report

Tuesday, 03-Feb-2015

NSE

  • The 50-share Nifty index ended at 8,756.55 down 40.85 points or -0.46 per cent, marking their lowest close since Jan 21. It touched a high of 8,837.30 and a low of 8,726.65 in intraday trade today. The S&P BSE Sensex closed at 29000.14, down 122.13 points or -0.42 per cent. It touched a high of 29,253.06 and a low of 28,900.41 in intraday trade today.

  • Benchmark indices ended lower for the third straight session, amid choppy trades to mark their lowest close in nearly two weeks, with financials and interest-rate sensitive stocks leading the decline after the Reserve Bank of India at its policy review today kept key rates unchanged, while boosting banks' liquidity in a bid to persuade them to lower lending rates. In this backdrop, the Union Budget and the borrowing figures become increasingly important from the market viewpoint to determine the course and the pace of the rate cuts in the time ahead, leaving its next reduction probably until after the government presents its annual budget at the end of this month.

  • The 3-day fall also tracked selling by overseas investors worth 6.3 billion rupees on Monday and another 2.6 billion rupees today, after 11 continuous days of buying and a total of $2.9 billion of stock buying so far this year, provisional exchange and regulatory data showed.

  • Market may not see new highs, says Ashwani Gujral. The private banks are now participating in the correction and the Bank Nifty could get down to 50-day moving average. The broader market is also participating in the correction and so more downside near the budget before we start another rally. So for the moment, we should just wait and let the correction play out but overall it does appear that market is now turning sideways and is not keen on making many new highs, he adds.

  • We believe that the market may see a bit of correction going ahead, says Mitesh Thacker. Having said this, we believe that we are still not looking at a possibility of a broader reversal even after seeing a rally which took the NSE's benchmark Nifty from levels of around 8250 to about 8950. The 20-day average is now about 8630-8640, which is the base, he adds.

NIFTY 3-Month

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