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Market Report

Wednesday, 04-May-2016

NSE

  • The 30-pack Sensex was in the green briefly at around 12 noon but slipped soon after and eventually closed at 25,101.73, down -0.51 per cent or 127.97 points. The broader Nifty50 index followed a similar trajectory and closed at 7,706.55, down -0.52 per cent or 40.45 points. With this, the domestic market extended its losing streak to a third day.

  • Benchmark indices closed lower for third straight trading session, amid negative global cues, with metal shares leading the decline tracking a fall in global commodity prices. Besides, growth in India's services firms fell to a four-month low of 53.7 in April from 54.3 in March on the back of new business growing slower than the previous months, a business survey showed today. Further, selling by foreign institutional investors and weakness in the rupee and oil further dampened market sentiment.

  • The rally seen in the rupee since the last week of February has lost momentum and the domestic currency appears to have hit its top for now. Currency market watchers expect the local currency to weaken further and test the 68 level in the days to come. Experts say the referendum on Brexit on June 23 and the direction of commodity prices, especially that of crude, would play an important role in influencing rupee movement in the near future.

  • The Nifty50 formed a Hammer pattern on the daily technical charts, with a green body which is a bullish reversal trend. This can mean a change of polarity, which means the resistance is becoming the support. Today, the index recorded a loss for the third consecutive day, but ended a shade higher than its crucial support level at 7,700. In case Nifty50 fails to take support at the 7,700 level, its next stop will be at 7,664, the 50-day EMA.

  • There was a lot of volatility, but the key thing to know is that supply has been evident at higher levels even today. The supply has come in at sub-7,800 level of the Nifty. The market's range on a daily basis seems to be shifting downward, said Dr CK Narayan.

NIFTY 3-Month

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