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Market Report

Friday, 09-Sept-2016

NSE

  • The stage was set for a weak opening after Japan claimed that North Korea had conducted a nuclear test. The S&P BSE Sensex opened 100 points lower and then kept on falling through the day to eventually end at 28,797.25 today, down 248.03 points, or -0.85 per cent. NSE's Nifty50 fell below the crucial support level at 8,900 to settle at 8,866.70 today, down 85.80 points, or -0.96 per cent.

  • Markets ended lower, amid weak global cues, as investors booked profits after sharp gains in the previous session which lifted the benchmarks to 18-month highs. Further, testing of a nuclear weapon by North Korea also dampened sentiment for riskier assets. Lack of intent shown by ECB's Mario Draghi to raise stimulus was yet another cause of concern.

  • The Nifty50 took a 1 per cent knock today and formed a 'large bear candle' pattern on the daily charts, signalling a day of bear dominance. Today was a poor day for the NSE barometer, as it could not see the positive terrain at any point during the session. The 50-stock index could barely manage to end above the crucial support level of 8,850. In such a scenario, one can expect a bigger correction.

  • However, not all experts are worried. I do not think we should read too much into this trend, said CK Narayan. It is after all just a re-adjustment of the weekly trends. We have managed to hold on to the gains that we built in during the week, giving up a little bit towards the end of the week. My expectation is that the weak hands are probably getting bailed out or being forced to bail out and they will be back in action next week, said Narayan.

NIFTY 3-Month

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