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Market Report

Monday, 08-Sept-2014

NSE

  • The 50-share index ended at all-time closing high of 8,173.90 today, up 87.05 points or +1.08 per cent. It touched all-time high of 8,180.20 and an intraday low of 8,126.15 in trade today. The S&P BSE Sensex ended at all-time closing high of 27,319.85, up 293.15 points or +1.08 per cent. It touched all-time high of 27,354.99 and a low of 27,144.56 today.

  • Markets staged a smart recovery in today's session, to ease past the losses over the last two trading days, on way to set a new record high for both the Sensex and Nifty. The Nifty resumed its upward journey on the back of strong inflows from foreign institutional investors. The FIIs have pumped in $740 million in Indian equities last week while year-to-date they have invested massive $13.9 billion. Sentiments was bettered after Goldman Sachs raised its Nifty target to 9,000 points for September 2015. Its previous target was 8,600 points for June 2015.

  • According to analysts, India is in a sweet spot and the rally will continue at least till Diwali. They are not expecting a sharp correction but some consolidation is not ruled out. The Indian markets have rallied nearly 29 per cent so far in the year 2014, which puts our markets ahead of global peers in terms of overall performance. Despite recent outperformance, most analysts on the Street see further rally on the Nifty, which may take the index to 9000 in the next 12 months.

  • I do not anticipate a big correction but some sectoral rotation. I do anticipate some profit booking and consolidation and I would quantify that as a maximum of 7-10 per cent, said Ritu Gangrade Arora of Canara-HSBC OBC. At this point, market is trading at 16.5 times rolling forward one year. That is not a very expensive market as we have seen peaks of 21 and 22 times. I still see strong flows both from domestic as well as FIIs, Gangrade added.

  • The opening gap-up was sustained for the next two hours, said Mitesh Thacker. Towards closing, the market picked up steam as participation and breadth improved. I would be comfortable buying into Nifty at 8150 spot levels with a 50-point stoploss for 100-150 points rally on the upside. Out short term targets of 8250-8300 should be met in the next few trading sessions, he added.

  • There is still time for retail participation in market to become widespread, says Ashwani Gujral. The market is slowly moving up and it is good to see all the sectors performing well. Even the midcaps have pitched in. We are in a sweet phase, where there may be mild intraday corrections and every day some or the other sector will move up. There will be a large correction, but it will come only when there is a widespread participation. Therefore, 8900-9000 is the target and we should have a clear run, other than small down days or intraday corrections, he adds.

NIFTY 3-Month

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