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Market Report

Thursday, 09-June-2016

NSE

  • The S&P BSE Sensex ended the day at 26763.46 today, down 257.20 points, or -0.95 per cent, while the Nifty50 of the NSE ended at 8203.60 today, down 69.45 points, or -0.84 per cent. In the broader market, the BSE Midcap fell -0.5% while Smallcap index ended flat. Market breadth ended negative with 1332 losers and 1233 gainers on the BSE.

  • Benchmark share indices ended lower today, amid weak global cues, as investors booked profits after recent gains with index heavyweight Infosys leading the decline on concerns over volatility in revenue growth. The S&P BSE Sensex broke below its crucial psychological support level of 27,000 led by losses in index heavyweights. The Nifty50 was moving around its crucial support level at 8,200 throughout the day.

  • The Nifty50 broke below its crucial resistance level of 8,240-8,250, which is 61.80 per cent retracement of the entire down leg of the market. In the process, the index formed a 'Bearish Belt Hold' pattern on the daily candlestick chart. After forming a 'Hanging Man' pattern on the charts on Wednesday, the 'Bearish Belt Hold' pattern signals a bearish view. We may see the market move till the 8,150 level and even lower till the 8,000 level due to further profit booking. But the medium-term uptrend is likely to resume after a brief correction.

  • The key support for the trade tomorrow would be 8150 and resistance at 8280 on Nifty spot levels, says Kunal Bothra of LKP Securities. We believe, that the indices could consolidate some time further as a lot of midcaps and small caps stocks as well as underperformers would start catching up with the broader market. A stock specific approach should be adopted at this point, rather than index view, till the time consolidation continues, says Bothra.

NIFTY 3-Month

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