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Market Report

Wednesday, 19-Feb-2014

NSE

  • The S&P BSE Sensex ended at 20,722.97 today, up 88.76 points, or +0.43 per cent. The Nifty closed at 6,152.75, up 25.65 points, or +0.42 per cent. The 30-share index broke out of intraday range in the last half an hour of trade and surged over 100 points on the back of gains in technology, pharmaceuticals and capital goods sectors.

  • The Indian stock markets made gains for a fourth straight session today, marking their highest close in nearly four weeks, though volumes were low. Nifty futures finally showed some reversal from its 200-day moving average support zone, which is seen around 6000 levels and closed above the 6100 psychological mark with considerable rise in open interest in the past three days, indicating some short-covering followed by long positions getting built.

  • Globally, Asian stocks ended mixed with profit taking seen in Japanese shares after recent gains. European shares pared early gains and were trading mixed.

  • Despite market showing some sign of a pullback, FII buying remains quite low, says Ashish Chaturmohta of Fortune Group. Technically, Nifty futures caps resistance around 6200-6210 levels, where the gap is seen. If it sustains above these levels, we may see a sharp pullback in the market towards 6300 odd levels, whereas on the downside, 6020, where its 200-day moving average is seen, would hold as an important support for the market, he adds.

  • We are bullish on IT space, says Sandeep Wagle of APTART Technical Advisory Service. Banking space still has some more upside. So, Nifty-6250 should be tested over the next few trading sessions or probably a week or so, he adds.

  • Investors should wait for markets to correct before taking positions, says Jyotivardhan Jaipuria of BofA-ML. The general thinking is that inflation is starting to come down in India. It is one of the very few countries in the world where interest rates are what they were at the peak of 2008. We get interest rates coming off substantially in India and that could help turn around the economy, he says.

NIFTY 3-Month

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