Past few weeks, the domestic indices have witnessed several ups and downs. Before 20th September, the bulls have been dominating the market, making investors happy but uneasy. But on 22nd September Nifty50 came under the selling pressure at higher levels forming a ‘Doji Star’ pattern on the daily candlestick charts. The bulls had lost their momentum.
On 26th September, Nifty again witnessed a breakdown and slipped below its crucial support level of 8,800 in the first thirty minutes of trade. A week before the date, the comments from US FED had Nifty open at a gapup, but soon the Benchmark Index lost its momentum turning most experts cautious on the market. There had been indications that the market was heading towards a steeper decline. Sensex and Nifty have outperformed the indices like Dow Jones and Dax since February, becoming vulnerable for the correction. The domestic indices have gained 30% while Dow Jones gained 24% while Dax gained 24%. On the technical charts, it looked like the index has concluded a major price cycle at the recent high of 8,968 registered on September 7.
The Surgical Strike on 28th September took the Indo-Pak tension to yet another level, shooking up Dalal Street the next day. BSE Sensex crashed 463 points whileNifty50 nosedived 153 points to close at 8,591. The hardest hit was taken by the smallcap and midcap stocks. Besides the tension, the F&O expiry also strengthened the bears and accentuating the volatility. The market crash has created opportunity for long-term investors to enter the market.
Indices Today:
Both the Indices opened at the green note. Sensex opened with the rise of 0.47% while Nifty opened 0.64% up. In the first fifteen minutes both the Indices took a little dip Sensex traded at 27,988 against its opening of 27,997.29 while Nifty traded at 8,651 against its opening of 8,666.15. The strong participation of retail investors made Mutual Funds to invest Rs. 13,500 crores in the equity market over the first nine months of the current year. In the next thirty minutes, Sensex went up to trade at 28,115, Nifty was trading at 8,700.55, higher that its opening price and Rupee gained 11 paise.
After half-an-hour Nifty gained another 81 points while Nifty went up by 18.45 points. Three hours before the trade was due close, Midcap and Smallcap stocks outpaced the Benchmark Indices.
The Closing:
Sensex closed at 377.33 points, up by 1.35% due to across the board value based buying in bluechips. Sentiments remained positive since morning after India’s core sector output increased to 3.2 per cent in August due to the sharp rise in steel production and a pickup in cement, signifying a lift in infrastructure and construction activity. Strong Asian cues and increase in the Rupee supported domestic equity markets as well.
Nifty settled 1.47 per cent, up at 8,738.10. ZEEL, Eicher Motors, Maruti Suzuki, Hero MotoCorp and Adani Ports gained between 3.16 per cent and 5.84 per cent. On the other hand, TCS, Bharti Infratel and Bosch Ltd declined by 0.91 per cent, 0.42 per cent and 0.25 per cent, respectively.
This fairly suggest that market has recovered from the initial shock of terror and is all set to rise
Domestic financial markets have been sensitive about the tension on the Pakistan front for most of the past week and news of a fresh terrorist attack on the Indian Army may not go down very well. But the chat on breakfast tables this morning was what the newly-formed Monetary Policy Committee of RBI is going to do in its first policy review on Tuesday. And then, there are other triggers such as telecom spectrum sale and auto sales data to set off sector-specific action. The data fairly suggests that market has recovered from the initial shock of terror and is all set to rise. Any correction is the chance to get the hands on the stocks that have been doing well.
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