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Market Report

Friday, 31-Oct-2014

NSE

  • Both S&P BSE Sensex and Nifty made fresh highs today, surging nearly 2 per cent each in trade. The 30-share Sensex ended the day at 27,865.83, up 519.50 points, or +1.90 per cent. The Nifty shut shop at 8322.20, up 153 points, or +1.87 per cent. The Sensex hit its fresh lifetime high of 27,894.32 in intraday trade, while the 50-share Nifty index rose over 150 points to make its all-time high of 8,330.75.

  • Bulls have clearly made their mark on Dalal Street as Sensex explored unchartered territory for a second day in a row today. Markets have been on an upward trajectory since the last few days on the back of renewed confidence shown by the government to initiate reforms, falling crude oil prices, lower inflation, supportive global cues and robust earnings, say experts. Strong macro environment, reform push by the new government and falling inflation have already boosted the Sensex by over 30 per cent so far in the year 2014. But analysts at Dalal Street see further upside in the index up to the levels of 30,000 by the December-end and over 35,000 in the next one year.

  • World markets hit fresh record highs today tracking sharp gains in Japanese shares with the benchmark Nikkei hitting a seven-year high after a surprising move by the Bank of Japan which announced expansion of its monetary easing measures. European markets have opened upbeat on BoJ surprise move to substantially expand its bond buying program which is likely to increase liquidity in the global equity market.

  • Corrections will keep happening, says Pankaj Murarka of Axis MF. Our view on equities has been really constructive. So, corrections like the one we saw over the last few weeks will keep happening and that is more because of some global events. But when you look at India, we are very nicely positioned, he says.

  • Expect markets to make fresh highs going ahead, says Manish Hathiramani of Deen Dayal Investment. I am of the opinion that we are again in a fresh high, and we are definitely heading to steeper highs. We have had very good volumes and technically the structure seems fantastic. We crossed 8180, which was the previous high. Now we are headed towards 8400 on the Nifty. But it is not going to be a clean and smooth ride, he adds.

  • Do not get over excited in this rally, warns Ashwani Gujral. The leg on this momentum can continue to about 8600. The important bit is holding on to your long positions. If people are holding on, they should continue to hold on. I do not think new highs is the place to take fresh positions. The idea is that have a portfolio and make one each time we go down 5 to 7 per cent. As the market moves up, you should tend to book some profits so that you have capital ready for the next leg down, he says.

NIFTY 3-Month

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