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Market Report

Wednesday, 10-Feb-2016

NSE

  • From a weak opening, the Sensex recovered about 100 points in the last one hour of trade, but still ended the day at a 21-month low of 23,758.90 today, down 262.08 points or -1.09 per cent. The NSE's Nifty50, too, settled at a new 21-month low of 7,215.70 today, down -1.13 per cent or 82.50 points.

  • The S&P BSE Sensex cracked over 250 points in afternoon trade, pulling the index towards a fresh 52-week intraday low of 23,636.72 today, which also marks over 20 per cent fall from its recent peak of 30,024.74 hit in March 2014. A 20 per cent fall in Sensex from its recent peak signifies the onset of a bear phase. However, to confirm the same, the index has to spend some time at this level. The Nifty50, too, slipped below its crucial support level at 7,200 for the first time since May 2014 to a intraday low of 7,177.75 today. This is the lowest level since May 30, 2014, down 20 per cent from its all-time high point of 9,119.20.

  • Markets ended at their lowest level since May 2014 amid a sell-off in state owned banks after they reported huge losses because of higher provisioning on account of rising non-performing assets. Both indexes went down tracking weak global trends and a fresh slump in crude oil prices before paring some of the losses in the afternoon session, taking cues from a strong opening in European markets. Elsewhere in Asia, the 225-share Nikkei Stock Average plunged 372.05 points, or -2.31 per cent, to hit a 15-month closing low. The Chinese markets continue to be shut on account on the Lunar New Year.

  • Nifty50 heading towards 6,800-6,700 levels, say experts. Technically, the market seems to have broken important support levels and now looks poised to move lower. A close below the 7,200 level on the Nifty50 could add further bearish momentum to the market, experts said. In the near future, if the index breaches the 7,200 level, further correction can be seen up to the 6,850 level, which is its next major support level.

  • We are paying the price of being part of the integrated global market place, said Bharat Iyer of JPMorgan India. Obviously, the pressures are huge out there and I guess since we are linked to the global market, we cannot escape the contagion. The market is not showing a comforting sign. I guess you will probably have to wait because as far as our house view is concerned, there is probably more pain in store, he added.

NIFTY 3-Month

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