Stocks
Nifty, Sensex deeply oversold – Wednesday closing report

Nifty will be influenced by global clues, but to rally it has to close above 8,080 tomorrow

 

Today for the ninth consecutive session, the S&P BSE Sensex recorded a lower low and a lower high. And it was the sixth session when it opened lower, while it was the third consecutive session the CNX Nifty opened in the red. The indices moved down to the lowest since 21 October 2014. However, soon after hitting the intra-day low at around 10.25 AM, the indices recovered most of the intra-day loss, though it closed in the red. Today was the fifth occasion in 2014, when the indices recorded losses for five consecutive trading days. This was last observed in the month of July 2014.


Sensex opened at 26,724 while Nifty opened at 8,041. Sensex moved in the range of 26,872 and 26,469, while Nifty moved between 8,082 and 7,961. Sensex closed at 26,710 (down 71 points or 0.27%) while Nifty closed at 8,030 (down 38 points or 0.47%). NSE recorded a volume of 98.96 crore shares. India VIX rose 3.79% to close at 16.9250.


There was a rumour that Life Insurance Corporation of India has started buying shares after a steep slide in stock prices.


Key oil and gas sector reforms like diesel de-regulation and a new gas pricing policy will have a positive impact on companies engaged in fuel retailing and gas production, says a report by Fitch Ratings. But the rating outlook for Indian oil and gas entities remains stable in 2015, it said.


Great Eastern Shipping (6.44%) was the top gainer in ‘A’ group on the BSE. The stock had been falling in each of the past four sessions.


PMC Fincorp (10%) was the top loser in ‘A’ group on the BSE. The stock lost for the fifth consecutive trading session today.


Sesa Sterlite (3.50%), which was at the bottom of the Sensex 30 pack yesterday, made it to the top of the pack today.


Recent concerns over the falling Rouble have affected many pharma stocks which have exposure to the Russian market. Cipla (2.92%) was the top loser in Sensex 30 stock.


On Tuesday, US indices closed in the red. Among economic data, housing starts declined 1.6%, the first drop since August, to a 1.03 million annualised rate from a revised 1.05 million pace in October that was stronger than previously estimated, figures from the Commerce Department showed.


A two-day meeting of Federal Open Market Committee to discuss monetary policy review ends today.


Asian indices showed mixed performance. Shanghai Composite (1.28%) was the top gainer while Hang Seng (0.37%) was the top loser Japan's exports rose less than forecast in November. Overseas shipments rose 4.9% from a year earlier, the finance ministry said.


The Asian Development Bank (ADB) slightly trimmed its growth forecast for developing Asia for this year and next, but said sliding prices for oil should help economies in the region push through with growth reforms. In its update to the 2014 outlook, ADB said that developing Asia was now expected to grow 6.1% this year, a tad below its 6.2% forecast in September. Growth in 2015 was seen at 6.2%, lower than 6.4% estimated previously.


European indices were trading in the red, while US Futures were trading higher.

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Nifty, Sensex will stay weak – Tuesday closing report

Indian markets are now battling massive fear across the world. Rallies will be sold

 

We had mentioned in Monday’s closing report that Nifty and Sensex are making an attempt to stabilise and rise, but a rally will materialise only if Nifty closes above 8270.
 
Today the market opened lower and started to move sharply down. Every attempt to revive was met with further selling. The indices made the highest losses today since 8 July 2014.
 
Sensex opened at 27,181 and hit a high almost at the same time at 27,199. Nifty opened at 8,173 and reached up to 8,189. The indices moved lower to hit a low at 26,736 and 8,053. Sensex closed at 26,781 (down 538 points or 1.97%) while Nifty closed at 8,068 (down 152 points or 1.85%). NSE recorded a higher volume of 102.38 crore shares. India VIX rose 16.32% to close at 16.3075.
 
India's merchandise exports rose 7.27% to $25.96 billion in November 2014 over November 2013, data released by the Ministry of Commerce & Industry after trading hours yesterday showed. Imports jumped 26.79% at $42.82 billion in November 2014 over November 2013. The trade deficit rose sharply to $16.86 billion in November 2014, from $9.57 billion in November 2013.
 
India's gold imports in November reached 151.58 tonnes, according to data provided by India's trade ministry on Tuesday, marking a 38% increase from 109.55 tonnes in October.
 
A fall in oil prices favours airlines and Jet Airways (7.20%) was the top gainer in ‘A’ group on the BSE. The Indian rupee slumped to low of 63.45 per dollar in the early trade today. This is the weakest level in past 11 months. IT stocks were among the major gainers today. HCL Technologies (4.58%), TCS (3.40%) and CMC (2.48%) were among the top four gainers in the group. TCS was at the top in the Sensex 30 pack followed by Infosys (0.69%).
 
Reserve Bank of India on Monday eased rules for long-term loans by banks to the infrastructure sector and heavy industry. The RBI said only loans where the combined exposure by lenders in a single project is more than Rs 500 crore would be eligible under the eased regulations. Unitech (10.75%) was among the top two losers in ‘A’ group on the BSE.  Sharp fall in the crude oil price brought Sesa Sterlite (7.77%) to the bottom of the Sensex 30 stocks. 
 
On Monday US indices closed in the red. US manufacturing output recorded its largest increase in nine months in November as production expanded across the board, pointing to underlying strength in the economy. Factory production rose 1.1% after advancing 0.4% in October, the Federal Reserve said on Monday.
 
Most of the Asian indices closed in the red. Nikkei 225 (2.01%) was the top loser. China's flash manufacturing purchasing managers' index from HSBC Holdings Plc and Markit Economics fell to 49.5 for December, from 50 last month. It's the first time since May that the gauge has slipped below 50, the threshold between expansion and contraction.
 
In a move to try to arrest the rouble's crash, Russia's central bank made a drastic interest rate move overnight, raising its key rate from 10.5% to 17%.
 
European indices were showing mixed trading. US Futures were trading sharply lower.
 
The PMI data out of Germany showed multi-month lows for the services and composite PMIs, but the manufacturing PMI rose to 2-month high. France's manufacturing PMI fell to a four-month low.

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COMMENTS

VGANESAN

3 years ago

This is exactly ihave mentioned in ur recent fortnightly market view.Ur editor says buy on shallw correction.On the same day i have posted comment inur site u may say sell on rallies. Today exactly it happened u r saying sell on rise.Now i request u to concentrate on ur longterm fundamental calls more.

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