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Market Report

Monday, 26-May-2014

NSE

  • The Sensex started strong but lost momentum towards the close and briefly slipped into negative territory to touch a low of 24,433.90. It recovered marginally to end up 23.53 points, or +0.10 per cent, higher at 24,716.88 today, surpassing its closing of 24,693.35 on Friday. Intra-day, it swung over 741 points. This is another fresh record close for the Sensex. In previous two sessions, it had rallied 395 points.

  • The 50-share NSE Nifty after regaining the key 7,500-mark to hit day's high of 7,504.00, succumbed to emergence of profit-booking at prevailing levels. It gave up all gain to close at 7,359.05 today, a fall of 8.05 points or -0.11 per cent. The Nifty came off the day's high to end flat, amid a volatile trading session, as investors turned cautious ahead of key cabinet portfolios that are likely to be announced post Shri Narendra Modi's swearing-in ceremony as the 15th Prime Minister of India later this evening.

  • Meanwhile the rupee, in the forex market, also turned weak and was trading 29 paise lower at 58.81 after strengthening to a 11-month high of 58.40 against US dollar.

  • Stock brokers said investors who were sitting gains became cautious and locked in gains in recent outperformers such as power, PSUs, realty, oil and gas and banking sector stocks. Sensex has gained over 2,200 points this month so far.

  • Globally, Asian and European stocks traded firm tracking gains in US markets and easing of tensions in Ukraine after the country's chocolate tycoon Petro Poroshenko emerged victorious in the presidential election held on Sunday.

  • Every dip now will be bought into for the next few days, says Mitesh Thacker. As long as we are not going below 7270-7280, we should keep a positive bias. While we have targets of around 7550 on the upside, there is a good chance that those targets might be receded. The markets have continued to show strength, as is evident from the rally in an overbought situation. This typically means that there is a strong buying interest left, he says.

  • 7550-7600 on Nifty will not get taken out in a hurry, says Ashwani Gujral. Broadly, we are going to remain in this 7100-7550-7600 type of band. Today, even small caps and midcaps have started to correct. So during the rest of the year, chances are that we will remain fairly range-bound on large cap indices, but midcaps and small caps, post their corrections, should resume their rallies, he adds.

NIFTY 3-Month

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