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Market Report

Friday, 08-Mar-2013

NSE

  • The Sensex, which had gained 535.58 points in last three sessions, shot up further by 269.69, or +1.39 per cent to 19,683.23 today, a level last seen on February 4. On similar lines, the broad-based National Stock Exchange index Nifty regained 5,900 level by rising 82.40 points, or +1.41 per cent to end at 5,945.70 today.

  • Brokers said the upsurge in the market was mostly attributed to expectations of an interest rate cut by the Reserve Bank of India in its policy review on the 19th of this month. Investors are now looking forward to industrial output data due next week, traders said.

  • They also said a firming global trend as data from the US added to positive signs that the global economy is recovering, further supported the market. The Dow Jones Industrial Average yesterday climbed to another record yesterday on lower-than-expected jobs-related data, pointing to a continuing pick up in the world's biggest economy.

  • World shares hit their highest level since June 2008 and the dollar touched a fresh 3-1/2-year high against the yen on Friday. China also gave markets a boost as official data showed February exports grew 21.8 percent versus a year ago, more than double the expected rise. European shares, which have rebounded strongly this week after last week's Italian election and US spending cuts-related wobble, opened up 0.5 percent. That put them on track for their biggest gains since the opening week of the year.

  • 5980-6000 is the next resistance level for Nifty, says Ashwani Gujral. You see mild 50 point pullbacks in the Nifty are not pullbacks but market seems to be having steam, says Gujral.

  • Markets can extend rally upto 6020 to 6050, says Mitesh Thacker. In case there is a pause decline should be used to buy into but then you will have to wait for intraday averages to pullback, says Thacker.

  • WPI, factory data key after stock rally, says experts. Indian share market will await the factory output data on Tuesday and inflation on Thursday, which are expected to set expectations. We are almost touching the peaks of 6100 that we touched couple of months back and as we have seen earlier 6100 seems to be sort of a value at which FIIs may not be that interested to get in any more. So 6100 is sort of a cap from a fundamental valuation perspective, they say.

  • Markets likely to remain volatile ahead of IIP, Inflation data next week, says Gopi Krishna Suvanam. It is very interesting because people went short post the budget but immediately after in the next week people started covering some of those shorts or may be fresh longs have come in so that could have push the market much higher, he says.

  • Goldman Sachs has retained its overweight rating on the Indian stock markets on both 3 and 12-month basis with an annual target price of 7000 on the Nifty by March 2014. The 50-share Nifty index staged an impressive rally on Friday topping its key resistance levels of 5950, its best percentage gain since November 29. According to the investment bank, a growth recovery on the horizon and a supportive equity valuations backdrop will all support the Indian markets. In the near-term investors will watch out for the RBI rate cut on March 19 or firmer IIP print which may give confidence that the growth cycle is turning, says the firm.

  • SEBI to ease registration norms for foreign investors, reports ETNow. The government is looking to ease norms for the entry of foreign investors as part of efforts to attract more capital inflows to bridge its widening current account deficit, it said.

NIFTY 3-Month

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