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Market Report

Thursday, 21-July-2016

NSE

  • The S&P BSE Sensex closed 205.37 points, or -0.74 per cent, lower at 27,710.52 today, while the 50-share NSE Nifty50 slipped below 8,550 to end the day at 8,510.10, down -0.65 per cent or 55.75 points.

  • Unsurprising results from two giant private banks amidst low expectations caused shares of other private sector banks to drag the benchmark equity indices. The broader market slipped in line with the benchmark indices with the BSE Midcap and Smallcap indices closing -0.19 and -0.14 per cent down, respectively.

  • The Nifty50 opened on a muted note but ended the day lower, extending the slide in the last one hour of trade today. In the process, the index formed a 'Bearish Engulfing Pattern' on the daily candlestick charts. The Nifty50 made a short bull candle on Wednesday, followed by a bearish candle today which put the bulls on a back foot at least on the candlestick charts. A break below the 8,476 level is something that can trigger a further correction in the market, experts said.

  • Interestingly, the 'Bearish Engulfing Pattern' on the Japanese Candlestick charts was accompanied by a sell signal on the daily MACD oscillator and appears to have further strengthened the bear case sentiment. A breach below the critical support level of 8,476 looks inevitable now, said Mazhar Mohammad, Chart Strategist.

NIFTY 3-Month

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