22.11.2013

Market slides to over one-week low as Fed taper worries resurface

Key benchmark indices slumped after minutes from the Federal Reserve's last meeting signaled US stimulus may be reduced in coming months. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their lowest level in more than a week. The Nifty settled at a tad below the psychological 6,000 mark, having swung alternately above and below that mark in late trade. The Sensex tanked 406.08 points or 1.97%, up close to 40 points from the day's low and off about 350 points from the day's high. The market breadth, indicating the overall health of the market, was weak. In the foreign exchange market, the rupee edged lower against the dollar due to broad dollar gains after minutes from the US Federal Reserve's October policy meeting showed the US central bank considering an imminent slowing of its bond-buying program.

NOTE : AFTER 1ST TGT HIT KINDLY REVISED SL TO COST PRICE !

TRADING CALLS 

CASH

BUY BOI 212 SL 205 TGT 217.50 / 222

BUY DLF 143 SL 138 TGT 147.50 / 152

SELL AMBUJA CEM 171.50 SL 175 TGT 167 / 162.50

SELL FINTECH 175 SL 180 TGT 171 / 165

DISCLAIMER : THE AUTHOR IS NOT RESPONSIBLE FOR ANY LOSSES DURING ANY TRADE THIS IS MY VIEW !!

The BSE Mid-Cap index fell 1.18%. The BSE Small-Cap index declined 0.91%. Both the indices outperformed the Sensex.

The BSE Bankex (down 2.49%), BSE Capital Goods index (down 2.37%), BSE Realty index (down 2.29%), BSE Power index (down 2.06%), and BSE PSU index (down 2%) underperformed the Sensex.

The BSE Auto index (down 0.96%), BSE HealthCare index (down 1.27%), BSE Consumer Durables index (down 1.38%), BSE IT index (down 1.59%), BSE Teck index (down 1.66%), BSE Oil & Gas index (down 1.7%), BSE Metal index (up 1.79%), and BSE FMCG index (down 1.87%), outperformed the Sensex.

The total turnover on BSE amounted to Rs 1803 crore, lower than Rs 2137 crore on Wednesday, 20 November 2013.

The market breadth, indicating the overall health of the market, was weak. On BSE, 1,552 shares declined and 922 shares gained. A total of 137 shares were unchanged.