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Market Report

Tuesday, 25-Mar-2014

NSE

  • The 30-share Sensex, which climbed to all-time high in the previous session, was volatile before ending 0.27 points lower at 22,055.21 today. The key index hit a record intra-day high of 22,079.96 in intraday. The National Stock Exchange index, Nifty, surged to a fresh high of 6,589.75 by adding 6.25 points, or +0.09%, with foreign funds buying banking stocks even as refinery shares plunged.

  • Brokers said the market sentiment was low as stocks of oil producers, led by Reliance Industries, slumped after the Election Commission asked the government to defer a planned hike in gas prices that was to come into effect from April 1.

  • A higher opening in European markets and foreign funds picking banking stocks on expectations that RBI will hold key interest rate in its policy review next week supported the market to some extent. Overall, it was lacklustre session though which saw both the benchmarks - Nifty and Sensex move in a narrow range. Investor sentiment remained subdued globally as uncertainty over Ukraine loomed amid concerns over global economy. Meanwhile, hopes of economic reforms in China after recent slowdown capped the downside in stocks.

  • For the Rupee, an improved economic outlook amid hopes of recovery post elections and recent rallies in the stock market helped the rupee surge to a seven-month high against the green back. It breached the appreciation mark of Rs 60.50 in afternoon trades due to dollar flows in equities. It was quoting at Rs 60.50 compared with previous close of Rs 60.79. The rupee had opened at Rs 60.61 and so far in intra-day trades it touched a high of Rs 60.43 per dollar.

  • We expect Nifty at 6,900 in current market rally, says Ravi Muthukrishnan of ICICI Securities. In the last couple of months the macros have improved dramatically. We have seen the GDP bottoming out. CAD has been improving. The rupee has appreciated. Of course, we have inflation slightly on the higher side, but the CPI core inflation has been coming down. So from the economic front, things have improved and added to that is the prospect of a stable government at the Centre. All of this has added to the rally and we expect this rally to continue for some more time till the elections are due. So anything in the range of 6,900 is what we expect, he explains.

  • Expect Nifty to test 6,750 before 6,500 is broken, says Sandeep Wagle. Yes, there are some stocks which are weak, there are some sectors which are correcting, but some others are taking the place and I really do not see our markets fall and if you talk of the Nifty specifically, 6,500-6,480 has become kind of base and it should not be broken down before 6,750 is tested, he adds.

NIFTY 3-Month

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