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Market Report

Friday, 11-Dec-2015

NSE

  • The S&P BSE Sensex tanked 207.89 points, or -0.82 per cent, to close the day at 25,044.43 while the 50-stock barometer Nifty50 ended the day near its 3 month low at 7,610.45 today, down 72.85 points, or -0.95 per cent. ICICI Bank and Tata Motors were the top losers in the BSE benchmark.

  • The Sensex ended the week with losses of 595 points, or -2.31 per cent while Nifty50 shed 171 points, or -2.22 per cent.

  • The S&P BSE Sensex reversed Thursday's gains as volatility took centrestage, and slipped over 200 points to break below its crucial psychological level of 25,000 today, while the Nifty50 came under pressure and plunged below its crucial support level at 7,600, weighed down by losses in banks, auto, capital goods, consumer durable and realty stocks.

  • A selling spree on the banking counter dragged the market down. Investors are worried that accounts under SDR may attract early provisioning post RBI governor Raghuram Rajan's comments. The RBI Governor said today that the central bank will examine how the country's banks are using provisions they were given to help tackle a crippling bad debt burden. A selloff in other Asian and European markets also weighed on investor sentiment, as the US Federal Reserve's crucial rate-setting meeting draws near.

  • The Nifty50 closed a tad above 7,600 on Friday, that does not inspire confidence, said Sandeep Wagle. For me, the trend changing range is 7,700-7,710 and I want the Nifty50 to consistently close above that. That will be the first sign of change in the ongoing trend, when one can think of going long. But there are signs that Nifty50 can see a bounceback after reaching 7,550. I would avoid going long on the bounceback and wait to sell at higher levels. Sooner than later, the 7,550 level will come under threat and we may then go down to even 7,450, he said.

  • After the Fed event, we may see a pre-Santa Claus rally should the US Fed hike interest rate, and its subsequent commentary doesn't trigger a global turmoil, said Piyush Garg of ICICI Securities. However, it may not be a big-bang bounce. In the past three-four years, Santa Claus has largely skipped the Christmas party in the domestic market due to lack of activity both in terms of price as well as volume, with the index barely moving 1-1.5 per cent during this period. This is largely because many FIIs close their books for the year during the last week of December, said Garg. Sustained fund outflows by foreign investors continues.

NIFTY 3-Month

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