Bloodbath continues on the Dalal Street as it was down since morning and closed near the lowest point
of the day’s trade with huge volume is a worrying factor for the market today. BSE Sensex fell nearly 2
percent as blue-chip shares slumped for a second consecutive day on worries the pace of foreign
investor buying is slowing down.
Key broad indices ended on a bearish note today as Sensex slumped by more than 400 points, closing
in the red for the second day on the trot amid fears that stimulus reduction by the US Federal Reserve
may slow foreign fund inflows.
Weak cues from most Asian markets which also fell on US Fed stimulus taper concerns, weighed on
sentiment. Minutes from the Fed’s latest meet signaled that the Fed may trim bond purchases in the
coming months as the US economy improves, casting doubts over further capital inflows into emerging
markets.
FIIs purchased shares worth Rs 800 million down from Rs 10 billion plus each on the previous two
days. Investor sentiment was also impacted little after rating agency Fitch ruled out any chance of a
downgrade of India’s credit rating in the near-term while the World Bank predicted a pickup in
economic growth this quarter.
Most Asian stocks and European markets trading lower today. SENSEX closed at 20,229.05, down by
406.08 points Nifty ended at 5,999.05, down by 123.85 points.
On the Sectoral front, Banking and Capital Goods shed 2.49 per cent and 2.37 per cent, respectively.
The Market breadth, indicating the overall health of the market, was weak with advance-decline at
922/1552 at the close on BSE.
Top Nifty Losers were Indusind bank, Axis Bank, Sesa-Sterlite, PNB & Ambuja Cement while there was
no gainer either in BSE or in NSE today.
Global Markets Updates:
European shares fell on Thursday, led by financials, after the Federal Reserve signalled it may start
withdrawing its monetary stimulus in the next few months. Weak data from China aggravated the
decline.
Both Dow and NASDAQ futures were trading flat at this evening with Dow future was in red while
NASDAQ future was positive by about 9 points at this evening.
Technical View
RSI was at 43, MACD positive below signal line; India VIX was at 21~ which all Indicate that market see some
more downside and make bottom formation around 5900 levels.
Today, Nifty closed below its short term and medium term MA of 5DMA (6114), 20DMA (6163), 50DMA (6044)
but above 200DMA (5864) which all indicate that market has turned bearish in short to medium term basis.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.