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Market Report

Monday, 15-July-2013

NSE

  • Sensex, the 30-share BSE index, started the day lower at 19,904.47 on profit booking triggered by weak IIP and retail inflation numbers that came after trading hours on Friday. It however reversed the falling trend during the day and closed 76.01, or +0.38 per cent higher at 20,034.48 today. This is the first time that the index has closed above the 20,000 mark since 20,215.40 on May 30. Similarly, the wide-based National Stock Exchange index Nifty gained 21.80 points, or +0.36 per cent, to close at 6,030.80 today as inflation numbers met market expectations amid firm global cues.

  • Brokers said the trading sentiment improved as wholesale price index based inflation rose less than the market expectations and optimism over the earnings season which took a firm start with Infosys posting smart numbers. The WPI-based inflation rose 4.86 per cent in June compared with a 4.7 per cent in May. They said a firming trend in global markets as Chinese economic growth matched forecasts further influenced the trading sentiment.

  • European shares rose as China's economy expanded in line with analyst forecasts. The yen weakened and commodities declined.

  • Hopes of policy action from the Congress-led UPA government gained prominence after the RBI tonight came out with a slew of measures in a move to stem the continuing fall of rupee. Under the measures announced, RBI raised lending rates to commercial banks 2 per cent to 10.25 per cent making the loans costlier. In a move to make rupee dearer, the RBI will also conduct sale of Government of India Securities to suck up Rs 12,000 crore on July 18 from the market. The Marginal Standing Facility (MSF) rate has also been increased to 10.25 per cent from current 8.25 per cent. Repo rate has been left unchanged.

  • Markets are likely to see a limited upside of 5 per cent from the current levels till November and the Sensex may dip to 19,000-19,300 levels on corrections to offer better buying opportunities, according to a Bank of America Merrill Lynch India strategy report.

  • Nifty can plunge another 100 points from current levels, says Mitesh Thacker. I am not looking at big rally happening over there but about 3-4-5% kind of a movement on the upside could propel the Nifty by another 100 points, he says.

  • Market likely to top out in next few days, says Ashwani Gujral. You can easily see Nifty getting another 100 points but the view remains that at some point in the next few days the market is likely to top out, he says.

  • Point to note: FIIs have gone back to selling and were net sellers today — on a day when the Nifty ended positive. See our 'Market Statistics' page.

NIFTY 3-Month

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