NIFTY OUTLOOK FOR 24 & REVIEW

MID SESSION BULLISH

Nifty                               8018    -128

Nifty opened steady and fell sharply in the afternoon session to close with a huge loss and nearer to 8000 mark. One more day’s weakness would make the market weak for short term. However, Nifty has been moving in a narrow range for the month and the present contraction would lead to inevitable expansion sooner than later. With Tuesday’s loss, Nifty is close to the lower end and unless Nifty closes above 8100, bearish bias would continue.  Nifty spot is expected to encounter resistance at 8060,, 8095 and find support at 7965, 7930 for Wednesday. 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 be better in general for most part of the day after the opening session and could witness selling pressure towards close.

SELL OFF IN GLOBAL MARKET TRIGGERED BIG LOSS

Indian markets today suffered a big jolt with Sensex crashing 431 points and Nifty plunging 129 points in their worst drop in two-and-a-half months following a sell-off in overseas markets on concerns over global growth. Slower foreign fund inflow and profit-booking after recent bull run ahead of the expiry of September derivative contracts on Thursday also weighed on domestic sentiments. Over 2,100 stocks listed on the BSE fell today, wiping out more than Rs 1.63 lakh crore in investor wealth. Selling was seen across-the-board as all 12 sectoral indices closed in the red logging losses between 0.38 per cent and 4.91 per cent. Realty, oil & gas, capital goods, metal and pharma segments led the downslide. On the global front, data spooked investors after data showed Eurozone's private sector activity slowed again this month. This sent major European markets on a downward spiral. In Asia, indices closed mixed with a downward bias after a survey in China showed factory employment slumped to a 5-1/2-year low even as manufacturing grew more thane expectations in September. Back home, the BSE 30-share barometer, after few minutes intro trading touched a high of 27,256.87 but fell soon on emergence of profit-booking. Heavy selling forced the index to conclude at 26,775.69, a steep fall of 431.05 points or 1.58 per cent. Previously, it had stumbled by 517.97 points or 1.98 per cent on July 8, 2014. Similarly, the wide-based 50-issue CNX Nifty of the NSE tanked by 128.75 points or 1.58 per cent to end at 8,017.55. This is its worst drop since July 8 when it fell 164 points. "Markets fell sharply on the back of profit booking and negative global cues. The selling pressure gained momentum after data released on Eurozone economic activity indicated continuing weakness in the region," said Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities. Stocks like Cipla, Tata Motors, Hindalco, Tata Steel and Tata Power were major laggards today. TCS, Sun Pharma, SBI, RIL, ONGC, Mahindra and Mahindra, L&T, Infosys, ICICI Bank and Coal India fell sharply. Bucking the trend, stocks of Hindustan Unilever, ITC, Maruti Suzuki and NTPC gained. Second-line stocks also suffered heavy losses on profit selling by retail investors.  

1.65 lakh crores investor wealth sucked

Investor wealth today fell sharply by Rs 1.65 lakh crore in-tandem with an overall weak stock market where the benchmark Sensex lost a whopping 431.05 points. With the Sensex witnessing its worst fall in two-and- a-half months, the total market capitalisation of BSE listed firms declined by Rs 1.65 lakh crore to Rs 94.43 lakh crore. The Sensex ended the day at 26,775.69, a steep fall of 431.05 points or 1.58 per cent.
Among the 30-Sensex scrips, 26 ended the day in red led by Cipla, Tata Motors, Hindalco and Tata Steel.
The four gainers were NTPC, HUL, Maruti and ITC.
All of the BSE 12 sectoral indices settled with losses, with realty index witnessing the maximum fall of 4.91 per cent.
At the BSE, 2,182 stocks declined, while 847 advanced.