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Market Report

Thursday, 20-Aug-2015

NSE

  • The benchmark indices danced to the tune of weak global cues, with the 30-share BSE Sensex plunging 323.84 points, or -1.16 per cent, to settle at 27,607.82 on Thursday. The 30-share Nifty barometer, breached all key daily moving averages (DMA) to eventually close the session down 122.40 points, or -1.44 per cent, at 8,372.75 today.

  • Global cues were negative with European shares ruling up to 1 per cent lower at the time the domestic market shut shop amid concerns over gloomy outlook for global economies. Markets across the globe saw deep cuts, as fading expectations for an imminent US interest rate hike following Federal Reserve meeting minutes stoked anxiety about the health of the global economy. At home, the fall in the benchmark indices were primarily led by losses in banking and IT stocks. CNX Bank Nifty plunged over 400 points in intraday trade.

  • Fears of a meltdown intensified amid a sharp drop in emerging market currencies. Rupee droppped to its fresh two-year low 65.48. Global currencies witnessed a slump, with Turkish Lira falling to a record low against the dollar. The South African Rand also dropped to 13/$ marking its biggest fall since December 2001. Commodities too took a beating, with Brent crude falling below the psychological mark $46 a barrel.

  • Markets could be challenging till September; all eyes on global trend, says Ashwani Gujral. Once the volatility starts coming back into market, the market will take in all kinds of bad news and react to it. Therefore, somewhere, it seems that good news is not been able to take market higher now and August and September could be challenging. Broadly, at the end of it, 8,000-9,000 range on Nifty should sustain unless there is a big global problem. Overall, I do not feel that 7,950-8,000 will be broken, he says.

  • Break below 8,325 on Nifty would confirm a downtrend, says Mitesh Thacker. Starting from the first week of July, we have had three or four important swing lows around the 8,350-8,325 mark. Therefore, this 25-point range is an important support level. You had one jerk on the downside; wait for the 8,325 support level to be taken out. That will confirm that this downtrend is possibly here to stay for next two to three weeks. Once that happens, I would look at 8,200-8,220 as the primary or the minimum target and possibly 8,000 later on, he adds.

NIFTY 3-Month

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