NIFTY OUTLOOK FOR 17 & REVIEW

MID SESSION PULLBACK

Nifty                               7748  -116
 
Nifty traded steady / flat for most part of the day and encountered huge selling towards close to close with a loss of more than 100 points and well below 7800 mark. All sectoral indices barring FMCG closed in the red. However, Nifty closed around 100 DMA, another major support level.  Negative global cues are driving the market coupled with considerable selling from FIIs.  Nifty spot is expected to encounter resistance at 7790,, 7825 and find support at 7715, 7680 for Friday. While Global cues  and  Funds flow  are expected to broadly guide the market movement, based on the present market position, market can be expected to trade in a zigzag manner with pullback in midsession.

GLOBAL GROWTH FEARS PULLED DOWN INDICES
Growing global growth worries spooked markets today with Sensex plunging 350 points to end below 26,000 mark after two months and Nifty slumping 116 points to sub 7,800 level on across-the-board selling in the last hour of trade. Sustained capital outflows amid weak Asian closing and lower European opening on the back of overnight fall on Wall Street on concerns over global economic growth scenario weighed negatively on sentiment. Besides, Indian rupee depreciated to 61.9 levels against US dollar on risk-aversion. Selling was so strong across Indian stocks that all 12 sectoral indices closed with losses of up to 4.25 per cent with consumer durables, power, metal, auto, capital goods, oil&gas and IT sectors taking the lead in the downslide. Overall, 26 out of 30 Sensex-based scrips closed in the red while ITC, Coal India, Gail and Cipla ended in the green. "Growth fears, falling inflation and disappointing US economic data has sent shares falling across Europe. Indian markets are afraid about the withdrawal of stimulus by US Fed," said Rakesh Goyal, Senior VP, Bonanza Portfolio. The 30-share BSE Sensex resumed lower but tried to recover as it logged a high of 26,462.08. However, it soon fell in last one-and-half-hour of trade and ended at 25,999.34, a fall of 349.99 points or 1.33 per cent. This is its weakest closing since 25,918.95 on August 13, 2014. Overall, more than 2,100 stocks closed down while about 750 shares ended higher on BSE, wiping out a chunk of investor wealth. 
The 50-issue CNX Nifty of the NSE also dipped by 115.80 points, or 1.47 per cent to end at 2-month low of 7,748.20. "It was a scary day for Indian markets which decisively broke the important zone of 7800 on Nifty...Now actual outcome of state polls will decide the fate of Indian markets going ahead," said Rajshekar Gowda, Senior Analyst, HBJ Capital. Fall in the global crude oil prices with European benchmark Brent North Sea crude shed USD 1.22 to close at USD 83.78 a barrel in London, would have a sentimental impact, brokers said.


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