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Market Report

Tuesday, 15-Nov-2016

NSE

  • The 30-share BSE Sensex plummeted -1.92 per cent, or 514.19 points, to close at 26,304.63 today. The headline index, which opened at 26,809 against the previous close of 26,818, hit an intraday high of 26,809 and a low of 26,253. On similar lines, the broader Nifty50 of the National Stock Exchange (NSE) shed -2.26 per cent, or 187.85 points, to close at 8,108.45 today.

  • The S&P BSE Sensex on Tuesday slipped to its lowest level since May 26 2016 owing to an acute cash crunch following the demonetisation move by the government and a rising bond yields on hopes of a rate hike by the US Fed weighed on market sentiments. Nifty50 closed below 200-SMA, at lowest level since June 27, 2016.

  • Markets fell sharply on fears that there will be an impact on the consumption sector because of the Government's demonetization drive. There were also fears over contraction of growth in the near term post demonetisation while rising US bond yields sparked concerns over foreign capital outflows. Banking stocks did well on expectations of a reduction in cost due to the significant increase in the deposits at banks.

  • The Nifty50 came under intense selling pressure from the word go today. It hit a four-month low and slipped below its crucial support of 200-day SMA placed at 8,126 today to form a 'Long Black Day' type of pattern on the daily candlestick charts. This showed that the bears kept selling pressure on throughout the trading session and the index has lost almost all the recovery made last week. It has been forming lower tops and lower bottoms on the charts, which is a negative sign. If the Nifty50 settles below the 8,120 level for a couple of sessions more, then the probability of it breaching the panic day low of 8,000 will be higher and in such a scenario the only logical support will be available around the 7,896 level, which is the 50 per cent retracement of its entire rise from the February lows of 6,825, say experts.

NIFTY 3-Month

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