A new short downtrend has started. Watch for a close above any previous day's high, for the first sign of a reversal of the downtrend

We had mentioned in Friday’s closing report that a close below 6,215 on the Nifty may reverse the rising trend. Today the market had a weak opening following troubles in Ukraine. Although Sensex managed to barely cross Friday closing for a little while, the Nifty couldn’t even reach up to the Friday’s close. The indices after hitting the intra day high witnessed sideways move for a little while but soon moved down.
 
Market sentiments were not only affected by geopolitical tension over Ukraine but also because of an official gauge of Chinese manufacturing dropped to an eight-month low.

The BSE-30 share Sensex opened at 21,079 while NSE Nifty opened at 6,264. Sensex moved to the level of 20,921 after hitting a high of 21,140 while Nifty moved down to the level 6,212 before which it hit a high of 6,278. Sensex closed at 20,947 (down 173 points or 0.82%) while Nifty closed at 6,221 (down 56 points or 0.88%). The NSE recorded a lower volume of 55.34 crore shares.

As per the data released by the Central Statistics Office, Ministry of Statistics and Programme Implementation, the quarterly GDP at factor cost at constant (2004-05) prices for Q3 of 2013-14 is estimated at Rs14.8 lakh crore, as against Rs14.1 lakh crore in Q3 of 2012-13, showing a growth rate of 4.7% over the corresponding quarter of previous year.

The Eight Core Industries having a combined weight of 37.90% in the Index of Industrial Production (IIP) increased by 1.6% in January 2014 compared with a growth of 8.3% growth in January 2013 and 2.1% growth in December 2013.

The Indian manufacturing economy showed signs of strengthening in February, with faster increases in output and new orders bolstering the PMI to reach a one-year peak. New export business also rose at a quicker clip, Markit Economics said. Up from 51.4 in the previous month to 52.5 in February, the headline HSBC India Purchasing Managers' Index (PMI) signalled a solid and stronger improvement in business conditions across the country's goods-producing sector, Markit Economics said.

Consumer goods came out again to be the best performing sub-sector of the manufacturing economy in February, leading the rises in both output and new orders. Input cost inflation quickened to its highest in four months during February. New orders increased for the fourth month running and at the most pronounced rate, since February 2013.

US indices had a flat ending with a negative bias on Friday.

The Chicago Purchasing Managers Index rose to 59.8 in February, topping expectations, while the final February reading on consumer sentiment from the Thomson Reuters/University of Michigan Surveys of Consumers also rose more than expected.

US gross domestic product (GDP) grew at an annualised rate of 2.4% in the fourth quarter of 2013, down from an initial estimate of 3.2%. The revision is down to weaker than expected consumer spending.

Except for Shanghai Composite (up 0.92%) and NZSE 50 (up 0.35%) all the other Asian indices closed in the red. Hang Seng (1.47%) was the top loser.

China's Purchasing Managers' Index fell to 50.2 in February compared with January's 50.5 reading, the lowest since June, the National Bureau of Statistics and China Federation of Logistics & Purchasing said March 1 in Beijing. A private gauge released today showed manufacturing contracting for a second month in February.

Russia's central bank unexpectedly raised its policy interest rate sharply to 7% from 5.5% previously, effective Monday morning. "The decision is meant to avoid emerging risks to inflation and financial stability associated with the recently seen increased volatility on the financial markets," the central bank said in a statement. The central bank described the move as "temporary".

European indices were trading lower while US Futures were deeply in the red.