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Market Report

Wednesday, 09-Dec-2015


  • The S&P BSE Sensex slipped 274.28 points, or -1.08 per cent, to close at 25,036.05 today, while the 50-stock barometer Nifty50 ended at 7,612.50 today, down 89.20 points, or -1.16 per cent. Vedanta and Tata Steel were the top losers in the BSE benchmark.

  • Indian markets finished lower for the sixth consecutive day, at a 3-month low, as hopes of the Goods and Services tax (GST) bill being passed in the current session of the Parliament faded considerably. To further dampen the spirits of participants on Dalal Street, the rout in the commodity prices globally weighed on the sentiment. Crude oil prices have slumped to fresh lows.

  • Meanwhile, the US Federal Reserve in its significant meet on December 15-16 is expected to hike the interest rates, which were kept at zero since 2008. If the Fed increases the rates, Indian equities are likely to see more accelerated capital outflows.

  • Short coverings can't be ruled out; see support for Nifty50 at 7,550, says Mitesh Thacker. As of now, the overall structure remains down. For any kind of secular or a short term reversal to happen, 7,720-7,730 on the upside need to be crossed. We have some strong support around the levels of 7,550-7,540, which is where we had bottomed out in September. Maybe around those levels, you will see some kind of short coverings or profit taking on short positions coming. But for the time being, the short-to-medium term trend for me remains on the downside, he says.

  • Short Nifty50 for target of 7,500; see strong resistance at 7,700, says Sandeep Wagle. Between 7,500 and 7,400, there are multiple supports which I do not think should be breached easily. We may spend some time oscillating between 7,500 and 7,700. I see 7,700 level acting as a very strong resistance for the index. I do not see it getting crossed. Till the index breaks out of 7,750-7,770 range there is no question of going long, he adds.

NIFTY 3-Month

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