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Market Report

Thursday, 26-Feb-2015


  • The 50-share index ended at 8,683.85 today, down 83.40 points or -0.95 per cent. It touched a high of 8,786.05 and a low of 8,669.85 in trade today. The S&P BSE Sensex closed at 28,746.65 today, down 261.34 points or -0.90 per cent. It touched a high of 29,069.13 and a low of 28,693.82 in trade today.

  • Our market cracked today and the 50-share Nifty index slipped below its crucial psychological level of 8700, on a crucial Rail Budget day and February F&O expiry as traders booked profits ahead of the annual Budget. Shares of railways related companies closed on a weak note as the Rail Budget presented by Minister Suresh Prabhu, which acts as a precursor to the Union Budget, failed to boost sentiments. The government's move to hike freight rates on bulk commodities, at a time when commodities prices are lower, also hurt the markets.

  • According to experts, markets is going extremely light in the run-up to the Budget and investors should remain cautious ahead of the event and wait for the next directional move. Technically, experts feel that market is heading towards its crucial support level and a bounce back is likely. The Nifty has strong support around 8650 and then at 8580-8600 which are important support levels.

  • Nifty may find support at around 8,400-8,500 levels, says Ashwani Gujral. The good news is that FIIs have been selling throughout the month, but we have seen a minor decline with the benchmark Nifty falling from 8,900 to 8,600 levels. No big deal. However, the market is over-leveraged. The euphoria is continuously coming down. On Friday as well as on Saturday, we should see choppiness. The market may find support at around 8,500, unless it is a terrible Budget, he says.

  • Limited room for upside in the market, says Mitesh Thacker. The medium-term charts have started to show a weak trend. In the short term, we are heading for some correction, closer to the support levels. The Nifty may see immediate support at 8,650. If that is breached, then we may see next support at around 8,580-8,600 levels. We might not see immediate declines happening below 8,650-8,580. So, possibly next couple of weeks could be either choppy or rangebound, he says.

  • There is one significant point to notice today: FIIs and FPIs have been significant buyers in our market today, in spite of the big fall by the Nifty. See our 'Market Statistics' page. Today was a strong continuation of the big buying seen from the 18th of this month. There can be many reasons why this is happening, but one thing is certain: foreign investors do not care about our Railway Budget and they are building positions expecting something good on Saturday. Time will tell.

NIFTY 3-Month

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