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Market Report

Friday, 21-Aug-2015

NSE

  • Continuing its losing streak, the S&P BSE Sensex fell 241.75 points, or -0.88 per cent, to settle the day at 27,366.07 today. The index fell over 450 points in intraday trade, ending the week 701 points down. The broader 50-share Nifty barometer closed the session down 72.80 points, or -0.87 per cent, at 8,299.95 today.

  • Our markets erased all gains of 2015 after weak factory growth from China raised concerns about global growth slowdown while the weakening rupee rekindled worries over foreign capital outflows. The sentiment was hurt amid rising concerns of a possible currency war on China's devaluation of yuan and fears of a China-led deceleration in global growth.

  • Global stock markets tumbled after a survey showed Chinese factory activity contracted at their fastest pace since the depth of the global financial crisis in 2009. Major European markets erased their intraday losses after falling over 2 per cent. Earlier in the day, major Asian markets settled the day in the red. The rupee too touched a low of 65.90 per dollar, the lowest since September 2013, tracking selloff in other Asian currencies.

  • Markets not to pullback until rupee falls, says Ashwani Gujral. Last time we went to 69 on the rupee vs dollar, Yes Bank and IndusInd Bank had the biggest fall because of their wholesale borrowing. This game is not being controlled by the stock market, this is being controlled by the currency. If there is more to go on currency, we will fall more. The clear anchor for this move is the currency, till that falls, the market will not pullback in any substantial manner. Once we breach 66 on the rupee, fresh selling is likely to come in, he warns.

  • Expect Nifty to head towards 8,000 level, says Mitesh Thacker. Possibly some throwbacks will keep on happening but I do not expect the markets to capture 8,330-8,350 kind of zones. There is some support at 8200 but eventually that will be broken and will head towards 8000, so the idea would be clearly to either sell on pullbacks to anything above 8300 or sell more aggressively below 8200 once that level is broken, he says.

NIFTY 3-Month

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