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Market Report

Friday, 18-July-2014


  • After opening in the negative zone and slipping further to 25,441.24 on profit-booking and a weak global cues on rising geopolitical tensions, the 30-share Sensex bounced back to close 80.40 points, or +0.31 per cent, higher at 25,641.56 after touching the day's high of 25,713.40 in intraday. The gauge has now gained over 634 points in four days. Today's closing is the highest since 26,100.08 (July 7). For the week, it has gained 617.21 points.

  • The 50-share Nifty of National Stock Exchange also spurted by 23.45 points, or +0.31 per cent, to close the day at 7,663.90 after shuttling between 7,595.50 and 7,685.00 in intraday. This closing is its highest in 10 days, on sustained buying by foreign funds in IT shares after encouraging earnings from TCS.

  • However, gains were limited as global markets remained under pressure after the downing of a Malaysian airliner at the Ukraine-Russia border, new sanctions on Moscow and unrest in Gaza, brokers said.

  • Globally, in other Asian markets, Nikkei, KLSE Composite and Hang Seng ended lower between 0.01-0.9% today. European shares, however, saw more selling after falling heavily on Thursday, while German government bond yields remained near record lows, driven by uncertainty. Russia markets took the heaviest hit. In the US, Wall Street has bounced back today after a sell-off, with Google gaining +2.9 per cent.

  • Analysts are of the view that geo-political concerns are more likely to be a short-term phenomenon for the Indian markets, but bouts of profit booking cannot be ruled out in near-term. Most analysts are not reading too much into the event. Hence, apart from some knee-jerk reactions, the uptrend for the Indian markets remains intact with some partial profit booking in between at higher levels.

  • Consolidation in the markets is always good, because it enables stronger and longer-term investors to position and increase exposure to the market, said Rahul Chadha of Mirae Asset Global Investments. Stock prices were running way ahead of fundamentals and in such cases, there is always a chance of a significant correction. So all these minor dips are always healthy towards the longer-term bull market, he said.

  • Overall the tone looks slightly positive to me, says Mitesh Thacker. But there will be choppiness because we are not seeing a trend signal over here which means that this is likely to be some kind of a bounce back from the correction levels though it might even test the earlier highs. With this kind of choppiness, the bias would be slightly on the upside. The stocks specific idea would be on the upside unless until we start breaking below 7580-7600 which is the immediate support levels, he adds.

NIFTY 3-Month

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