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Market Report

Monday, 11-Jan-2016

NSE

  • The S&P BSE Sensex ended the day at 24,825.04 today, down 109.29 points, or -0.44 per cent, after hitting its fresh 52-week low in intra-day trade. The 50-share NSE Nifty50 settled at 7,563.85 today, down 37.50 points, or -0.49 per cent. All of yesterday's gains have been lost today.

  • The domestic equity market crashed at the opening today under relentless selling pressure following a meltdown in the Chinese market, but managed to pare some of the losses before ending the day slightly in the negative zone. The upcoming third quarter earnings, which will kick-off from tomorrow, as well as the announcement of key macro-economic data, has also put pressure on investors.

  • Asian stocks fell sharply today tracking another plunge in Chinese shares after the Shanghai Composite ended -5.3% lower. However, European markets have come off their lows and are trading in green at this report time. Oil prices resumed their downfall on persistent worries over the growth slowdown in China's economy and a supply glut but analysts said ongoing tensions between producer giants Iran and Saudi Arabia could provide some support.

  • On the results front, Indian IT companies face tough challenges to show growth due to seasonal factors such as lower numbers of working days, currency fluctuations and the impact from Chennai floods. Analysts say the IT companies could deliver some more disappointments, as depreciation in the rupee during the quarter might have provided little support to IT earnings. Analysts tracking the sector believe while IT majors such as TCS and Wipro have already issued revenue warnings on account of the Chennai floods, others such as Infosys and HCL Technologies will also take a hit on their third quarter earnings.

  • On the indices, Sensex is oversold and we have not turned the direction as yet, says Mitesh Thacker. For the time being, the Sensex is possibly moving in a range of about 300 points above the 25,000 mark. I would expect it to test the 25,300-25,350 levels. Below 24,700, the downtrend should resume and we might actually go even lower to 24,440 or 24,450 levels, he said.

NIFTY 3-Month

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