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Market Report

Monday, 26-Sept-2016

NSE

  • The 30-share Sensex stayed in the negative zone for the whole day and settled lower by 373.94 points, or -1.30 per cent to close at 28,294.28 today. This is its biggest single-day fall since September 12 and the weakest closing since August 29 when it had closed at 27,902.66. It had lost 105 points on Friday. The broader Nifty also succumbed to selling pressure and slipped below the 8,800-mark to hit a low of 8,715.10 before ending at 8,723.05 today, down 108.50 points, or -1.23 per cent.

  • It was a day of disappointment for equity investors, tracking a global sell-off, as apprehensions over the Presidential election in the US and differences between Saudi Arabia and Iran over a possible crude output freeze made stocks bleed the world over. Benchmark indices ended over 1% lower today, amid weak global cues, with rate-sensitive sectors especially financials leading the decline.

  • Investors are also anxiously waiting for the upcoming monetary policy review at home on October 4, the first to be held under new RBI Governor Urjit Patel. Domestic markets will remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month September 2016 series to October 2016 series. The near month September 2016 derivatives contracts expire on Thursday, 29 September 2016.

  • The Nifty50 broke below its crucial support level of 8,750 today and formed a 'Large Bear' candle on the daily candlestick charts. Two consecutive bearish candles have already created pressure on the bulls and if the bears manage to push the index below the 8,688 level this week, the chance of a steep correction cannot be ruled out, which could take the Nifty50 towards 8,550 and 8,500 levels, and finally below the 8,000 mark, suggest experts. Traders who have created short positions should remain short with a stop loss of 8,820, they said.

NIFTY 3-Month

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