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Market Report

Tuesday, 21-Oct-2014

NSE

  • The 50-share index ended at 7,927.75 today, up 48.35 points or +0.61 per cent. It touched a high of 7,936.60 and a low of 7,874.35 in intraday trade. The S&P BSE Sensex closed at 26,575.65 today, up 145.80 points or +0.55 per cent. It touched a high of 26,615.41 and a low of 26,407 in intraday trade.

  • The Nifty extended gains for third straight session and closed above 7,900 as sentiment turned bullish in Indian markets following reforms push by the government. Just days after announcing reforms in oil & gas sector, the government has cleared an ordinance on e-auction of coal blocks that were cancelled by the Supreme Court. According to analysts, the steps are in a right direction and will help in bringing foreign investments in the country.

  • The market has given a thumb-up to government's intent to clean-up the mess in coal sector. The Nifty crossed 7,900 level early in the trade led by gains inbanks, metals, power and cement sectors. Analysts say after the state governments, these sectors will be the biggest beneficiaries from coal reforms.

  • Globally, Asian markets trends remain mixed as the as the third-quarter Chinese growth data failed to boost sentiments. Japan's Nikkei declined the most with around 2% loss. European shares have opened higher as hopes of a monetary stimulus program to be undertaken by European Central Bank are gaining ground though investors remain cautious about the impact of Chinese growth data.

  • Hopes of rate cuts, inflation coming down to augur well for banking space, says Ashwani Gujral. The Nifty is facing consistent resistance at about 7930-7950 this zone. Once we can take this out, may be another 150 on the upside is possible. The easiest trade appears to be the Bank Nifty and all of these PSU banks have hit fresh 52-week highs. The clear underlying trend is that people are hoping rates are going to come down and inflation will come down. The best way to play that is the banks, he says.

  • Nifty to pick up momentum if IT stocks perform well, says Mitesh Thacker. To me it still looks like a very fragmented market, something which is choppy but I would see some more strength in case we start getting pass 7950-7960 and look at 8020 first and possibly 8150 which is the earlier highs. The worry in the pack is CNX IT. It has kind of corrected a bit. So maybe if rates can stabilise or give some kind of reversal from lower levels, we might see the Nifty picking up momentum, he adds.

  • On occasion of Diwali, there will be a special Muhurat Trading Session on Thursday October 23, 2014. NSE and BSE Cash, Futures and Currency markets will have normal trading between 6:30 PM and 7:30 PM. Pre-open for NSE Cash and BSE Cash is between 6:15 PM and 6:23 PM.

NIFTY 3-Month

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