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Market Report

Tuesday, 23-Feb-2016

NSE

  • The 50-pack Nifty50 index shed 125.00 points to eventually settle at 7,109.55 today, down -1.73 per cent, thanks to selling spree in stocks from banking and FMCG sectors. All but one Nifty50 stock ended the day in the red. The Nifty50 slipped below the crucial support level of 7,150, but managed to end the day above 7,100. The S&P BSE Sensex slumped 378.61 points to end at 23,410.18 today, down -1.59 per cent. The Sensex and the Nifty toched an intra-day low of 23,362 and 7,091 each.

  • Domestic equity benchmark crashed over -1% today to snap a four-day winning streak after Moody's Investors Service said India's fiscal metrics would remain weaker than its peers in the near term even if Finance Minister Arun Jaitley sticks to the fiscal consolidation roadmap. Also weighing on the sentiment were mixed global cues and falling crude oil prices.

  • A fresh slump in crude oil prices dragged equity markets down the world over and while at home concerns rose over the government's ability to support the PSU banks. With just three more sessions left ahead of the Union Budget, investors looked nervous amid mixed signals about what Finance Minister Arun Jaitley may have in store for the B-Day, which dragged the 30-pack Sensex down as much as 379 points.

  • The way the market has come under pressure - the Nifty50, Bank Nifty as well as most largecap names - it does seem a little difficult to envisage that the 7,100 level will really survive. We should look at the market with some continued bearish expectations of somewhere around 7,040-7,050 levels, said Dr CK Narayan.

  • By the time the expiry is over, we are going to be in the 7,000-7,150 range. This is the broader range the market is working with right now. Only then will market participants be more attuned towards taking positions in terms of how the Budget will pan out. Till that time, selling the 7,100 straddle will be a good strategy, said Sahil Kapoor of Edelweiss Securities.

NIFTY 3-Month

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