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Market Report

Monday, 13-June-2016

NSE

  • The S&P BSE Sensex ended down 238.98 points, or -0.90%, to settle at 26,396.77 today and the Nifty50 closed 59.45 points, or -0.73%, lower at 8,110.60 today. In the broader market, both BSE Midcap and Smallcap indices performed better than the front-liners with losses of -0.6% and -0.5% respectively.

  • Benchmark share indices ended at two week low after industrial output, measured by IIP, contracted 0.8% in April, the first decline in three months, on the back of sharp fall in capital goods production and manufacturing activity. Sharp decline in the rupee, slide in crude oil prices, weakness among global peers and profit booking by domestic institutional investors and retail players also weighed on market sentiment.

  • The massive global selloff was triggered not by one or two but multiple triggers; the biggest among them was of course the outcome of various surveys that showed a 55 per cent chance of Britain exiting the European Union. Fed rate review this week and Brexit vote ahead also cast a pall of gloom over Dalal Street. For our market, key macroeconomic data that are lined up are release of consumer price index (CPI) today and inflation based on the wholesale price index (WPI) for May on Tuesday.

  • The Nifty50 opened with a downward gap of 70 points today, but managed to recoup some of the losses and close above the crucial support level at 8,100, helped by value buying. In the process, the index formed a 'Hammer' like pattern on the daily candlestick charts. The index has to cross and hold above the 8,125-8,150 zone to witness an upward move towards the 8,242, and then 8,300 levels, experts said.

  • The market is turning around and witnessing some short covering and a little bit of adventurous buying. But then the upside seems to be limited, as follow-through buying is missing. It will all depend on news flow. If news flow is not favourable, Nifty may slip below 8,100, said Dr CK Narayan.

NIFTY 3-Month

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