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Market Report

Thursday, 18-Apr-2013

NSE

  • Key Indian benchmark indices surged this Thursday with 30-share Sensex closing above 19,000 levels while 50-share Nifty scaled upto 5,783 but fell short of 5,800 in today's spectacular trading session.

  • The Nifty continued to move higher and rallied sharply on Thursday, the last trading day of the truncated week. The benchmark index is now trading near the crucial resistance level of 5770 that coincides with the 50DMA. The markets are likely to remain volatile in another truncated F&O expiry next week, as investors are eyeing key earnings from top private sector banks who are scheduled to declare their results this week.

  • If the index is able to maintain above 5770 on Monday, the Nifty could rally further up to 5835-5860 in the short term. However, a breach of 5750 on the downside might lead to profit booking up to 5650.

  • In the last week, despite significant global headwinds, our benchmark Indices rallied vigorously on the back of a strong up move in banking counters, accompanied by FMCG. Dalal Street now expects that with a fall in inflation and a down move in the global gold and oil prices, the Reserve Bank of India (RBI) will certainly give a rate cut in the upcoming monetary policy. While the quantum of the rate cut is debatable considering the overhang of the general elections over the next few months, the market is looking at a positive move from the RBI Governor in the first week of May.

  • Technically speaking, the momentum oscillators in the weekly chart have just given a positive crossover. If the current buying spree of the FIIs continues, we may see the levels of 5850 or even 5975 to be tested.

NIFTY 3-Month

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