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Market Report

Friday, 04-Dec-2015

NSE

  • The S&P BSE Sensex tanked 248.51 points, or -0.96 per cent, to 25,638.11 while 50-stock benchmark Nifty50 ended at 7,781.90 today, down 82.25 points, or -1.05 per cent. M&M and HDFC were the top losers on the BSE benchmark.

  • Markets ended lower for third straight day after European Central Bank (ECB)'s stimulus package failed to meet the street expectations. As expected, the ECB slashed its deposit rate deeper into negative territory and extended its asset buys by six months. However, market participants had hoped for a greater stimulus. Most other Asian markets traded weak after the ECB move. European markets traded lower continuing the weakness post ECB's move today. But in the US, Wall Street is sharply higher as of this writing on upbeat jobs data.

  • The domestic stock market ran out of steam in calendar 2015 after rallying about 30 per cent in the previous calendar, weighed down by both global as well as local factors. Yet despite the lacklustre move, the domestic equity market did manage to outperform global markets so far this year and is likely to offer double-digit returns to investors in 2016, analysts say.

  • Nifty has breached below the 7,900 mark indicating that the short term trend has turned negative for a while now, said Amar Ambani of IIFL. Immediate support for Nifty is seen around the November lows of 7,710. However investors may still invest in quality stocks from a medium to long-term perspective, he says.

  • A break below 7,700 may drag Nitfy50 towards 7,550, says Mitesh Thacker. What we have got today is some kind of a continuation gap, and it suggests that the index targets could be lower. May be from around today's levels, we might see the index making some attempt to pullback. Now if the pullback is weak and not convincing, then I would brace myself for a break of 7,700, and possibly a test of 7,550. This could happen in the next 6-9 sessions, he adds.

NIFTY 3-Month

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