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Market Report

Thursday, 03-Nov-2016

NSE

  • The BSE Sensex closed 96.94 points, or -0.35 per cent, down at 27,430.28 today and touched its lowest level since July 7. The 50-share Nifty50 settled 29.05 points, or -0.34 per cent, lower at 8,484.95 today and closed at its lowest level since July 11. Among the 51 components of the Nifty50, 33 ended the day in the red.

  • Subdued Asian cues coupled with rising uncertainty over the outcome of the forthcoming US presidential election continued to weigh on the domestic equity market for the third straight session today, amid persistent selling by foreign funds. In the broader markets, BSE Midcap and Smallcap indices ended down over -1% each. Market breadth ended weak with 1778 losers and 1174 gainers on the BSE.

  • A late selloff today pushed the benchmark index below its crucial support level of 8,500, which was acting as a strong base in the last three series. With the 8,500 level being broken decisively, unwinding of Put options at strike price 8,500 and entry of fresh shorts might drag the Nifty50 down by 150-200 points, say experts. Overall, the index has been making lower tops and lower bottoms on the daily charts, and has been moving in a falling channel. The only positive takeaway is that the breakdown in charts is more of a global phenomenon, while domestic macros remain intact.

  • The Nifty50 failed to hold on to its crucial support level at 8,500 today, and formed an 'Inverted Hammer' kind of pattern on the daily candlestick chart. This pattern marks potential trend reversals, but that requires further confirmation. Chances of a bounceback on Friday look bright, as the index closed around its crucial support level. But that should not tempt traders to create fresh long positions as the chart structure remains weak.

NIFTY 3-Month

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