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Market Report

Friday, 11-Nov-2016

NSE

  • The S&P BSE Sensex tracked weakness in other Asian markets and ended the day at 26,818.82 today, below its crucial psychological level of 27,000, down 698.86 points, or -2.54 per cent. On similar lines, the broader Nifty50 of National Stock Exchange fell a massive 229.45 points, or -2.69 per cent, to close at 8,296.30 today. The Sensex had opened at 27,344.85 against the previous close of 27,517.68 and hit an intraday high of 27,344.85 and low of 26,777 during the session.

  • Domestic equity benchmark Sensex crashed over 700 points on Friday amid heavy selling by FIIs, after a sharp spike in US bond yields as investors there speculated that President-elect Donald Trump's policies will stoke inflation in the economy. This triggered strong FII outflow, as investors seemingly shifted to better returns prospects in US equities from risky emerging markets.

  • Further, demonetisation move by the government dampened investor sentiment especially with fast moving consumer goods and consumer discretionary sectors to have a impact in the short term.

  • After a gap-down start, the Nifty50 slipped below its crucial support level of 8,300 today and formed a large bearish candle on the daily candlestick charts. The index also completed a three-candle pattern, which often signals a reversal in an uptrend known as 'Abandoned Baby'. Selling pressure intensified in the market as technical stop losses got triggered, when the Nifty50 moved below 8,500 and then 8,450. Now, a break below the crucial support level at the 200-day SMA, which is placed at 8,123, can trigger further correction in the market. Traders should tread with caution, say experts.

NIFTY 3-Month

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