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Market Report

Thursday, 28-Apr-2016

NSE

  • The S&P BSE Sensex plunged 461.02 points, or -1.77 per cent, to end at 25,603.10 today and the Nifty50 dipped 132.65 points, or -1.66 per cent, to close at 7,847.25 today. Indices closed at lowest level since April 13, 2016. Among broader market, BSE Midcap and Smallcap indices lost between -0.8% and -1.1%.

  • The domestic market opened flat and traded with losses through the day, and ended with losses following the expiry of April derivative contracts with the benchmark indices closing at 3-week low tracking a sell off in global stocks after Bank of Japan trimmed GDP growth forecast to 1.2% from 1.5% earlier for 2016-17 and kept its monetary policy steady keeping the negative interest rate unchanged. The US Federal Reserve also kept interest rates unchanged on Wednesday but signalled confidence in the US economic outlook, leaving the door open to a hike in June.

  • The S&P BSE Sensex plunged over 400 points in today's trade to break below its crucial psychological level of 26,000 while the Nifty50 lost over 100 points, which took the index below its 200 DMA placed at 7,850 weighed down by losses in power, IT, metal, capital goods and auto stocks. Experts attributed the fall to profit booking by investors.

  • Time and again we have seen that the market has reversed as soon as Nifty came closer to the 8,000 level. In today's session as well, the market witnessed some sort of profit booking, which took Nifty50 below the 7,850 level. The index breached three crucial support levels today: It fell below 7,950, 7,900 and its 200 DMA placed around 7,860 level.

  • To me it appears there would be some kind of profit booking in the 7,980-8,000 range, which is a very important level that we have failed to get past on multiple occasions, said Mitesh Thacker. Slipping below the 7,900-7,890 range would suggest there could be slightly deeper correction due to profit booking. Last time when we had this kind of a decline, the Nifty50 took support around the 7,820 mark, he said.

NIFTY 3-Month

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