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Market Report

Wednesday, 14-Dec-2016

NSE

  • Equity benchmark Sensex closed 94.98 points, or -0.36 per cent, down at 26,602.84 today. The 30-share index, which opened at 26,707 against previous day' close of 26,697, hit an intraday high of 26,736 and a low of 26,547. On similar lines, the broader Nifty50 index of the National Stock Exchange ended at 8,182.45 today, down 39.35 points, or -0.48 per cent, from its previous close.

  • The Nifty50 mirrored the volatility seen in other emerging markets and settled below the 8,200 mark as investors remain cautious ahead of today's Fed policy. A 25 bps rate hike is widely expected but any hawkish comment would act as a cloud over the EMs. Back home, both the CPI and WPI inflation has declined in November after currency shortage depressed the consumer demand. This may provide RBI some room for ease in interest rate.

  • If the US Fed does hike rates, it will be the second increase by the central bank in 10 years. The first increase took place in December 2015. A Fed rate hike typically results in some knee-jerk reaction in emerging market equities, as investors tend to pull out money from emerging markets and invest in the US in search of higher yields.

  • Market participants turned cautious ahead of the outcome of the US Federal Reserve's rate-setting meeting later today. The Nifty50 closed below its crucial support level of 200-day SMA and formed a bearish candle, which looked like a 'Bearish Belt Hold' pattern on the daily candlestick chart. These chart patterns are poised bearishly. Even if the indices register an upside breakout in the near term, such a rally shall be halted in the 8,460-8,510 zone. A breach of the 8,150 level could lead to further downside, say experts.

NIFTY 3-Month

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