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Market Report

Monday, 27-Apr-2015

NSE

  • The BSE Sensex opened higher and rose over 129 points to touch the day's high of 27,567.28 in early trade on the back of value-buying and positive cues from other Asian markets, but on emergence of profit-booking, it dipped to the session's low of 27,141.55. The gauge finally settled the day lower by 260.95 points or -0.95 per cent at 27,176.99, its lowest closing since January 7, when it closed at 26,908.82 points. Sensex has lost 713.14 points in three days of downward spiral.

  • Similarly, the 50-share NSE Nifty end below 8,300-mark by falling 91.45 points or -1.10 per cent to close at 8,213.80 after moving between 8,334.45 and 8,202.35 intraday. The Nifty ended lower for the third straight day as concerns over restrospective tax on foreign funds and weak corporate earnings continue to weigh on market sentiment. Apart from that, the Indian Met Department's first forecast for the upcoming monsoon season, which has given mere 28% probability for a normal monsoon with 35% and 33% probabilities assigned to below-normal and deficient monsoon scenarios, respectively.

  • India's Nifty fell below its 200-day moving average for the first time in nearly 15 months. The 50-shares NSE index declined steadily in trade today, to break its 200 day moving average of 8,254.17 for the first time since Feb. 6, 2014. Both the indexes are also heading towards their lowest close since January 8, 2015 and their eighth day of falls in nine, weighed down by continued worries about retrospective taxes and lower-than-expected January-March earnings.

  • The Indian market, which was the second largest gainer in the calendar year 2014, wiped out its entire gains made in the year 2015 today. The Sensex and the Nifty have both turned negative on an YTD basis. The Sensex has plunged -1.3 per cent and the Nifty has slipped nearly -1 per cent so far in the year 2015, as of data collected on 27 April 2015. If you compare the Nifty from its recent high of 9,000 levels, it has already corrected 7-8 per cent from its record highs. The short-term view is still bearish, but analysts see value for investors who are eyeing the long-term story.

  • Nifty may slip below 8,000 in a matter of time, says Ashwani Gujral. Definitely, we have broken the 200-day moving average on Nifty on Monday. The downtrend is getting stronger. Hence, 8,000 on Nifty should be a matter of time now, he warns.

  • Bias to remain negative for Nifty unless 8,270-8,280 region is breached, says Mitesh Thacker. In the next few days, 8,120 on Nifty should be tested. If the said level is broken, then 8,000 on Nifty could also be challenged. On the upside, unless and until we start recovering back beyond 8,270-8,280, it should be a bad market, he says.

  • The market seems to be weak, but technically if you look at it, we think that a bottom is very nearby, says Vineet Bhatnagar of PhillipCapital. There is a very strong technical support at 8247, and below that we have 8140 or thereabouts. We believe that there should be a pullback of about 200 Nifty points once the strong support is tested. But, if we go below 8146 as far as the technical chartist are concerned, there will be some sort of a panic, he adds.

NIFTY 3-Month

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