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Market Report

Tuesday, 27-Nov-2012

NSE

  • The Sensex soared by 305.07 points or +1.65% to 18842.08, its biggest rally after September 21. On similar lines, the broad-based National Stock Exchange index Nifty shot up by 91.55 points or +1.62% to close at 5727.45 today.

  • The benchmarks today surged by the biggest gain in over two months on across-the-board buying after Moody's said India's Baa3 rating outlook is stable because of the country's strong GDP economic growth along with high savings and investment rates that exceed emerging market averages.

  • Stock brokers said investors were also optimistic that the government will be able to push through economic reforms. Trading sentiment improved on reports that the ruling UPA government has ensured that they have enough numbers and may be able to win the voting test on economic reforms, including foreign direct investment in retail sector, in Parliament.

  • Buying activity picked up as speculators indulged in covering their short positions created in recent past before the monthly settlement in the derivatives segment on Thursday. The market will be closed tomorrow for 'Gurunanak Jayanti.'

  • Asian markets ended on a mixed note in trades today as global lenders reached a deal to reduce Greek debt and a political agreement on disbursing the next installment of aid. European markets were also trading on a positive note on the deal news from Greece.

  • Today's rally got support from strong global cues, Moody's positive comments on India, confirming its rating outlook as 'stable', FDI hopes and short covering ahead of the November F&O expiry added much needed up-tick in markets, according to analysts. Nifty today managed to breach a very significant resistance of 5640. It looks like that the rally is here to sustain. Global markets are also bottoming at the right juncture, which can add to the stability to our markets. It seems like markets are also pricing in deadlock in the Parliament. However, if reforms don't come through we might erase most of the gains, warns the analysts.

  • We should not be in a great directional mood because unless we get past the 5750-5800 zone I don't think we will be out of the woods, says Ashwani Gujral. 5780-5800 is pretty far off for markets. There could be 50-70 points on the index but there is not a clear sense whether we are going to take out resistances on the upside, he adds.

  • Markets can go down to 5200-5400 on Parliament impasse, fears Sandeep J Shah of Sampriti Capital. If the Parliament continues to stay in a grid lock and we have some issues in FDI in retail, the downside could be 5200-5400 for markets.

  • Sensex likely to see handsome gains in December, as per Morgan Stanley. December is very kind to equities and in the last 32 years, December has produced a 4.6% median return -- the best for any month in the calendar, a report said.

NIFTY 3-Month

(Data/Charts courtesy NSEI/Yahoo!/iCharts/The Economic Times)