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Market Report

Friday, 04-Nov-2016

NSE

  • The Sensex fell -0.57% or 156.13 points to end at 27,274.15 today. The Nifty fell -0.60% or 51.20 points to close at 8,433.75 today, its lowest since July 8. The mid-cap index dropped -1.3% and the small-cap index declined -2% in trade today.

  • Heightened nervousness around the outcome of the US Presidential election outcome next week dragged down the stock market further with indices extending losses for the fifth straight day today. Pharma shares led index declines following news that the US has begun a probe on possible price cartelization, while the continued sell-off in smaller shares resulted in the mid-cap indices posting their highest weekly loss in nine months.

  • The Nifty50 slipped below its crucial support level at 8,450 today, but managed to recoup some of the losses towards closing. In the process, it formed a bearish candlestick pattern, which resembled the 'Bearish Belt Hold' pattern on the daily candlestick chart. A Bearish Belt Hold pattern formed after an Inverted Hammer signifies that weakness still persists and traders should tread with caution. A break below 8,400 levels will open room for further downside towards its next crucial level of 8,370. Traders should refrain from creating fresh long positions till the index trades below 8,550-8,600 levels. However, a bounce back cannot be ruled out as the index is trading near support levels, say experts.

  • The market has not yet fully priced in that Trump could win, said Sanjeev Prasad of Kotak Institutional Equities. There will be a negative reaction if it translates into an actual win, Prasad said. The higher probability of a Fed rate increase in December, which could result in the dollar strengthening is also spooking investors, he added.

NIFTY 3-Month

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