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Market Report

Thursday, 22-Aug-2013

NSE

  • Sensex, the 30-share index closed at 18,312.94, up 407.03 points or 2.2 per cent. It touched a high of 18,349.82 and a low of 17,759.59 in trade today. The Nifty ended at 5,408.45, up 105.90 points or 2 per cent. It touched a high of 5,418.95 and a low of 5,254.05 in trade today after opening on a weak note, led by a rally in metal stocks by over 10 per cent, followed by oil & gas and IT stocks.

  • Benchmark indices witnessed a strong short-covering rally after being seeing oversold levels over some days now, despite a weakness in the rupee. Benchmark indices bounced back from their key support levels led by metal counters where strong buying signal have generated after activity in China's vast manufacturing sector hit a four-month high in August as new orders rebounded. Strong opening and the rally in European markets also provided support to the benchmarks.

  • The rupee also recovered sharply from day's low as buying activity in equities picked up. The partially convertible rupee was at 64.98, down 87 paise, against its previous close of 64.11 in trade today as on 03:00 pm. The rupee earlier breached 65.5 against the dollar, to mark its fresh record low.

  • According to analysts, market is likely to remain choppy and volatile atleast till the expiry which is due next week and next target on the upside is around 5410-5420 levels on the Nifty.

  • Tomorrow, if we start above 5,420 I should look for an immediate test of around 5,500. Level of 5,500-5,520 on the Nifty would be the next one where the index could head towards, said Mitesh Thacker. We have been talking about this 250 points from 5,250 to 5,500. For the time being we will keep short-term targets at 5,500 and that is where we would look at taking profits on long positions, he added.

  • Friday could be bullish or bearish, much of it would depend on the rupee, said Ashwani Gujral. Today (Thursday), there was divergence, something that is new considering that we have seen a strong correlation of rupee and the Nifty, he added. On short covering, I don't think this market can go substantially beyond 5,480-5,500; so, probably the big move is over and for the next few days we should chop around a bit, added Gujral.

NIFTY 3-Month

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