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Market Report

Monday, 07-July-2014

NSE

  • The Sensex today scaled 26,000 levels, continuing with its record-breaking binge, ahead of the Union Budget. Tracking the momentum, the 50-share Nifty index also managed to scale fresh record high of 7,792, supported by gains in IT, realty, power and metal stocks. Further, rail-related stocks firmed up today ahead of the Rail Budget to be announced tomorrow. Our markets extended gains for the second consecutive day today.

  • The 50-share index closed at 7,787.15, up 35.55 points or +0.46 per cent. It touched an all-time high of 7,792 and a low of 7,755.10 in trade today. The S&P BSE Sensex ended at 26,100.08, up 138.02 points or +0.53 per cent. It touched an all-time high of 26,123.55 and a low of 25,992.73 in trade today.

  • Finance Minister Arun Jaitley will present the Union Budget in the Parliament on July 10. There are high expectations from the Budget as the new government doesn't have any coalition compulsions and Prime Minister Narendra Modi has given hopes of a growth-oriented economic policy. Even as the Budget event is a few days away, the Indian markets are at life-time high in the pre-Budget rally. Investors are bullish on equities and a rally is seen across the board. Let it be cyclicals, defensives or midcaps; valuations of most of them are running high.

  • Persistent capital inflows were also another factor behind the spurt in share values, traders said. Additionally, sentiments were further boosted after Brent crude slipped to 3-week low as Libya geared up to resume exports from two ports that have been closed for nearly a year.

  • Globally, Asian stocks ended mixed as key benchmark indices in China, Singapore and Taiwan moved up by 0.03-0.59 per cent. Indices in Hong Kong, Japan and South Korea, however, eased by 0.02-0.37 per cent. European markets were trading lower on profit-booking.

  • Market to move towards 8100 around Budget 2014, says Vineet Bhatnagar of PhillipCapital. If you look at the distribution of calls and puts in the F&O segment, you will notice that it is most concentrated at the strike of 8000 for calls, the next one being 7800 and the puts have been built only at 7500. So looking at the way the market has moved in the last couple of sessions, our sense is that 7820 is actually the first resistance that the market would face, and thereafter, it can actually go all the way up to 8100, he adds.

NIFTY 3-Month

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