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Market Report

Friday, 20-May-2016


  • The S&P BSE Sensex opened higher but pared the gains soon after and turned rangebound. However, at about 2 pm, the market slipped into red and the Sensex lost as much as 251.16 points before closing the day at 25,301.90 today, down 97.82 points or -0.39 per cent. The broader Nifty50 settled at 7,749.70 today, down -0.43 per cent or 33.70 points.

  • Trading on Dalal Street was lacklustre today, as the domestic equity market swung between gains and losses after the Sebi enforced a new set of norms to keep a check on participatory notes. The NSE's Nifty50 was strugglinh to reclaim its crucial level of 7,800 but turned red about one-and-a half hours before the closing bell. Nifty FMCG, media and auto were the only sectors trading with gains.

  • The Nifty50 slipped a little over 2 per cent so far in calendar 2016 and is now trading near its 200-DMA placed at the 7,800 level on the daily charts, forming a 'Spinning Top' kind of a pattern on the daily candlestick charts, which suggests the index is losing momentum. This candle is often seen as a neutral pattern and should be studied with other indicators and patterns on the daily as well as weekly charts. A 'Spinning Top' right after a 'Bearish Belt Hold' pattern signifies weakness in the index and loss of market momentum. Traders should tread with caution, as there is a higher probability of a bounceback from key support levels.

  • Benchmark indices ended lower for third straight trading sessions despite positive Asian and European cues. Asian shares edged up today but were on track for a weekly loss, while the dollar was poised for a winning week on bets the US Federal Reserve could raise rates as early as next month.

  • Experts could not see any signal from the market. The market is clearly not giving you any signal. It might be counter-productive. For the time being, it is better to avoid the index, till we get some signals of either a breakout or have some momentum indicators. I think it will probably be prudent to have some patience, said Mitesh Thacker.

NIFTY 3-Month

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