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Market Report

Monday, 26-Dec-2016

NSE

  • The S&P BSE Sensex slipped below its crucial psychological level of 26,000 and ended 233.60 points, or -0.90 per cent, in the red at 25,807.10 today. This was the lowest closing for the index since November 22, 2016. The 30-share pack, which opened at 25,992.41 against previous close of 26,040.70, hit an intraday high of 26,008.57 and a low of 25,753.74 today. On similar lines, the broader Nifty50 of the NSE closed at a seven-month low at 7,908.25 today, down 77.50 points, or -0.97 per cent — its lowest closing since May 25, 2016. The index also breached the Brexit lows of 7,927 levels.

  • Benchmark indices settled the day lower as capital gains tax woes spooked the markets after PM Narendra Modi on Saturday said that people in financial markets must make a 'fair contribution' to nation building, comments that were seen as setting up the prospect of higher taxes for investors. However, Arun Jaitley clarified on Sunday that the government did not plan to impose long-term capital gains tax, though that was not enough to prevent selling in today's session. Thus, the market erased all the gains for the year on the first day of the last week of Calendar Year 2016.

  • Traders should maintain extra caution now as Nifty is steadily drifting lower, say experts. And on expected lines, the slide in banking is causing maximum damage at present. The Nifty50 has strong support near the 7,920 level and a close below this mark can add further selling pressure to the index, which might open up fresh downside towards 7,850 and 7,800 levels. If the bulls have to make their way into the market, the first test for them will be around the 8,050 level. A close above this level shall strengthen the bullish sentiment in the near term, they say.

NIFTY 3-Month

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