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Market Report

Wednesday, 11-Mar-2015

NSE

  • In volatile movements, the 30-share BSE index opened higher at 28,725.75 on the back of value-buying in select stocks. However, it soon came under pressure as participants preferred to book profits at every rise, leading to the index touching a low of 28,608.18. While a round of late buying in select bluechip stocks, helped the Sensex to touch day's high of 28,843.23 but it lost momentum again. It closed at 28,659.17 points - its weakest level since February 11 - down 50.70 points, or -0.18 per cent. The gauge has lost nearly 790 points in three sessions. The broad-based Nifty of the NSE slipped below the 8,700-mark by falling 12.10 points, or -0.14 per cent, at 8,699.95 today. It shuttled between 8,755.60 and 8,682.35 in intra-day trade. The gauge has lost 237.80 points in 3 days.

  • Markets ended lower for the third straight day weighed down by metal shares with Hindalco leading the decline following a scrutiny over the coal block allocations. Further, investors also turned cautious ahead of key economic data due for release tomorrow.

  • Brokers said reports of selling by foreign funds after remaining net buyers for several sessions on the domestic bourses, and profit-booking by retail investors after recent gains and weakness in the rupee, dampened sentiments. Mixed trends at other Asian markets and a higher opening in Europe also influenced trading here, they added.

  • Nifty likely to find support around 8670-8680 levels, says Yogesh Mehta of Motilal Oswal. So far we were enjoying the party with the budget event and we had a rate cut as well. As far as support is concerned, we are at a 50-day moving average, which is an exponential moving average, technical front around 8670 to 8680 levels. So it should take support there. We were almost trading nearly that level yesterday also. So, if there is any closing below these levels, then it would be negative, he says.

  • Nifty may fall to sub-8,500 levels; do not go for bottom fishing, said Sandeep Wagle. The bigger fall will come once 8,670 is taken out. The index could then fall to sub-8500 levels. That fall should come in far more faster in terms of time. A bounce back is likely, but Nifty should not rise above 8,800 level. I would be comfortable selling and if you want safety, as a trader you can sell Nifty below 8,670 with a 50-point stop loss and play for a target of 150-point downside. The fall could even extend to 8,400 levels, he adds.

NIFTY 3-Month

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