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Market Report

Wednesday, 08-July-2015

NSE

  • The BSE benchmark Sensex fell 483.97 points, or -1.72 per cent to settle at 27,687.72 today. The Sensex fell over 500 points in intraday trade, slipping below its crucial psychological level of 28000. The Nifty index fell below its 200-DMA placed at 8383 in trade today and eventually settled above the psychological mark of 8,350. The index dropped 147.75 points, or -1.74 per cent, to close at 8,363.05 for the day.

  • The markets went into a tailspin today as the meltdown in Chinese markets had a domino effect on Asian bourses, including India. The lingering uncertainty on the Greece front also kept the market participants on the edge.

  • Chinese stocks dived -6.2% today after its securities regulator said the tumbling stock market in the world's second-biggest economy was in the grip of 'panic sentiment' as investors ignored a battery of support measures from Beijing. The move by the Chinese regulator to tighten margin trading and short selling rules, making it difficult for investors to borrow money to play the market, was the immediate trigger for the mayhem on Chinese bourses. The Shenzhen Composite Index has led declines in Asia with a 38 per cent plunge since its June 12 peak.

  • The Greek saga also continues to dominate the headlines as the Greek government has received another lifeline and Athens has to now submit a set of new proposals by Sunday, failing which the 'Grexit' may happen sooner than later. However, markets in Europe were in recovery mode in the second half today after the Greek PM Tsipras told European Parliament that the country wants a deal to end Greece's protracted financial crisis, and that last Sunday's referendum result does not mean a break with Europe. Meanwhile, all eyes are set on the US Fed meeting minutes due later during the day for clues on the outlook for US interest rates.

  • At some point, we had to catch up on the downside with other Asian markets, says Ashwani Gujral. As long as 8300 holds on, investors should maintain a positive view, and with hope that at some point the rally will resume and this is only a mild pullback. No doubt, we may fall less when other global markets fall, but chances are once all this carnage is done, we will recover the fastest, he added.

  • Nifty in for some correction; 8,200 on the cards, says Mitesh Thacker. The past setup has got disturbed today with this fall. What was happening earlier was that every day we were getting some kind of negative news and gap-down openings, even as we were able to recover during the day. Today, the closing has been towards the lower end of the trade, with some kind of strong sell signals on intraday charts of indices. So my sense is that, we might be in for slightly more troubled time and a deeper correction and some kind of broader consolidation. If Nifty starts breaking below 8,340, we might get down to about 8,200 on Nifty and then enter into a broad range of 8,200-8,400 for some time before recovering nicely, he adds.

NIFTY 3-Month

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