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Market Report

Friday, 18-Dec-2015

NSE

  • The S&P BSE Sensex plummeted 284.56 points, or -1.1 per cent, to end the day at 25,519.22 while the 50-stock barometer, Nifty50, ended at 7,761.95 today, down 82.40 points, or -1.05 per cent.

  • After posting gains for four straight sessions benchmark indices 1% lower as investors booked profits after the government lowered 2015-16 GDP growth forecast. In its mid-year economic report, released in parliament today, the finance minister lowered the GDP growth forecast to 7-7.5 per cent for FY16, from 8-8.1% earlier, mainly because of lower agricultural output due to deficit rains. Dalal Street reacted to the announcement by snapping a four-day winning streak today.

  • Weak trends seen in other Asian and European markets as the worsening oil crisis weighed on investor sentiments, which got even worse with the Brent crude prices slipping below $36 a barrel.

  • Expect market to remain rangebound in next few months, says Mayuresh Joshi. With the fall that we have seen in commodity prices, a lot of companies have been benefiting in the ongoing financial year. However, as far as corporate earnings are concerned, we are not seeing any improvement at least over the next two to three quarters. The numbers might look better on the base of last year. But for a structural improvement, the market will still need to wait for two to three quarters. So having a look at all these factors, our take is that the market is in for a range-bound action over the next few months.

  • Nifty may hit 7,980 next week, says Sandeep Wagle. The momentum has altered but we recommend long in the Nifty at 7,780 but a very close stop loss of 7,740. In case that is taken out, we may see another 40-50 points downside. On Monday, if you see the Nifty trading on the spot levels above 7,800, one can add on with a stop loss of 7,740 and I would target a 7,950-7,980 in the coming week, he says.

NIFTY 3-Month

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