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Market Report

Thursday, 06-Mar-2014

NSE

  • Sensex, the 30-share index ended at a fresh all-time closing high of 21,513.87, up 237.01 points or +1.11 per cent. It touched an all-time high of 21,525.14 and intraday low of 21,329.88 in trade today.

  • The 50-share Nifty closed at all-time closing high of 6,401.15, up 72.50 points or +1.15 per cent. It touched a high of 6,406.60 and a low of 6,339.70 in trade today on the back of strong inflows from foreign institutional investors. Narrowing down of India's current account deficit (CAD) boosted investor sentiment.

  • The Nifty gained momentum for third straight session and hit fresh high of 2014 on the back of strong gains in banks. Investors cheered a sharp decline in the Current Account Deficit (CAD), which stands at a 4 year low as exports picked up and gold imports reduced. Also, Strong FII inflows in cash market aided the sentiment.

  • FIIs have been net buyers in cash segment as well as in index futures for the last 14 consecutive sessions. FIIs bought more than Rs 2,300 crore in Nifty Index futures and Rs 2,200 crore in the cash market in last four sessions alone. Foreign institutional investors bought shares worth Rs 737.29 crore while domestic institutional investors were net sellers worth Rs 201.85 crore on Wednesday. Today FIIs were net buyers worth Rs 1273 and DIIs were net sellers worth Rs 567 crores, both as per the provisional data from the National Stock Exchange.

  • The rupee too strengthened to its highest in nearly three months in afternoon trades on the back of on sustained selling of dollar after a sharp decline in Current Account Deficit (CAD) in the third quarter. It was last seen trading at Rs 61.27 compared with the previous close of Rs 61.76 per dollar. The rupee was last seen near these levels on December 11 at Rs 61.25.

  • The rally in the Indian markets in the last 10 days has taken most market men by a surprise. According to Ashwani Gujral, staying above 6,400 opens an upside of another 400 points for the Nifty.

  • The momentum will take the market much higher possibly all the way to above 6,700 plus, says Rahul Chadda of Mirae Asset Global Investments. That is the kind of zone that it has to go into before it starts kind of seeing some sort of reversal. The reversal would have to be at the back of a negative news flow and I do not think we are looking at some negative developments or news flow very soon. My sense is we could probably see 6,650-6,700 first and then the reversal could take it down all the way to 6,000 or even below that, he added.

  • After today's rally the market has broken the trendline on the upside, says Mitesh Thacker. He expects the momentum rally to continue and take the Nifty to fresh highs in coming sessions. I would trail Nifty stoploss just below 6,335-6,330 and look at this rally possibly extending on the upside and see the target in the range of about 6,500 with further possibilities on the upside. Momentum has come back in with some kind of strength, he adds.

  • Market men attributed the current rally to an increased participation from retail investors and an optimism that is generally witnessed ahead of the general elections. A change in the current government is largely viewed positively by brokerages.

NIFTY 3-Month

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