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Market Report

Tuesday, 16-Apr-2013

NSE

  • Rising for the second day, the 30-share Sensex rose to the day's high of 18,771.33 to finally end the day at 18,744.93 today, showing a significant rise of 387.13 points, or +2.11 per cent, its biggest gain since September 2012. The gauge rose over 171 points in the early trade. The NSE 50-share Nifty spurted by 120.55 points, or +2.16 per cent to close at 5,688.95 today.

  • Brokers said increased buying by funds and retailers on hopes of a rate cut by the RBI at its policy review on May 3 was mainly responsible for the rise today. Investors are now hoping that the central bank would ease monetary policy more aggressively next month to boost growth into the Asia's third-biggest economy.

  • The 50-share Nifty index closed 100 points higher on Tuesday to mark its first triple digit gain in the year 2013. The index has now moved above its short-term moving averages -- 20 and 50-day moving averages. The Nifty managed to give a closing above its 200-DMA, i.e. 5650 mark, which is a good sign, say analysts. The market breath which was a concern a few days back has also shown an improvement from the last two days.

  • Meanwhile, Japan's Nikkei average fell for a third day in a row on Tuesday, shedding 0.4 percent with the mood soured by concerns over stumbling global growth. Asian stocks ended mixed, European markets were trading lower in early trade today.

  • In case the current trend of declining oil and gold prices persists, it will clear the way for the RBI to move from calibrated steps towards a more aggressive stride in cutting policy rates and enabling it to firmly address slowing GDP growth, say analysts.

  • Market is seen discounting the fall in gold and crude oil prices which is likely to bring down current account deficit (CAD), said Nidhi Saraswat of Bonanza Portfolio. Also, a lower-than-expected inflation rate raises hopes for RBI to cut key interest rates, added Nidhi.

  • The Nifty index broke past a very critical resistance at 5580 and seems all set to hit 5750 levels which is its next logical resistance, said Kunal Saraogi of Equityrush.

  • Sooner or later Nifty will turn down and make fresh lows below 5500,says Ashwani Gujral. There could have large rallies continuing over many days and still the basic trend is that the market may goes and makes fresh lows. There are chances that we are somewhere near the end of a pullback. Wait for some more time, adds Gujral.

NIFTY 3-Month

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