Wednesday - 9th April - Market Analysis

Is the market in a benign state?

The broader index Sensex cannot find a good buying support and closed the day down by 66 points at 16479 and the Nifty closed at 4975, down by 25 points. Unless the market is able to cross above the 200 dma which is at 16940, it is heavily skewed towards further downside for time being. The immediate support for the market is at 16100-16200. Even though the FIIs are remaining continuous buyers the market could not find a solid support. The market may move on the sidelines between 16100 and 16800 for the week. The Nifty also may take support at 4920 levels and may move between 4940 and 5100. Break out on either side for the market may happen after the IIP data for March is released on Friday.

The market is anticipating a slide in the data compared to February data and its much adviced to stay short for the while. Meanwhile yesterday the Deputy Governor of the RBI has stated the central bank is left with no room for any further rate cut and it has spooked the market further. Among the much declines, again the BSE Bankex index has took a beating with almost many bank counters were down.

The State Bank has witnessed a 4 per cent decline and ended the day at 1881. BSE Reality indes is the other sector to witness a much bigger decline and closed the day by more 3 per cent down at 1569. The rupee closed down at 53.81 for the day by witnessing the highest intraday fall in the recent months. It’s been rumored in the market that the RBI is much active in the forex market by heavily selling dollar to rein the rupee slide.