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Market Report

Friday, 14-Nov-2014

NSE

  • Stock markets today surged to new highs with benchmark Sensex rising 106.02 points, or +0.38 per cent, to close at 28,046.66 after WPI inflation cooling to a 5-year low in October strengthened hopes of a rate cut while good earnings from bluechips like SBI boosted the sentiment. The 30-share BSE Sensex opened on a strong footing and continued its upward march to reclaim the key 28,000 mark to hit the day's high of 28,093.23 as buying picked up.

  • The 50-scrip NSE Nifty index spurted by 32.05 points, or +0.38 per cent, to close at new high of 8,389.90, surpassing previous record closing of 8,383.30 hit on November 12. Robust buying by overseas investors and tumbling crude oil prices supported the strong momentum in stocks. Indices have been hitting new highs after the government announced a slew of reform measures to boost economy amid positive economic data.

  • Foreign institutional investors remained buyers after net purchases on Thursday stood at Rs 681 crore, while it was a net buy of Rs 645 crore today, as per provisional stock exchange data. In fact, FII/FPIs have been net buyers throughout this month. See our 'Market Statistics' page.

  • Globally, Japan's Nikkei has retreated from the seven-year high mark as investors turned cautious ahead of the release of GDP data and is currently trading flat with a negative bias. European shares were trading mixed with FTSE-100 down while CAC-40 and DAX were trading with marginal gains when reports last came in. The Indian Rupee fell further and was trading at 61.77 against the US dollar compared to the previous close of Rs 61.54.

  • Expect earnings to be significantly ahead of expectations, says Shiv Puri of TVF Capital Advisors. If you look at foreign flows this year, they have been half the levels that they were last year. It is not like everyone has put India right on top of their map and most importantly, if you look at the companies on bottoms up basis, you still see pretty good opportunities to invest capital. In the short term, there can always be a correction like that happens invariably in any market, he says.

  • Market may be range-bound post recent rally, says Manish Kumar of ICICI Prudential Life Insurance. If you look at the recent corporate results that were announced for the September quarter, most of them were either broadly in line or somewhat lower than market expectations. Fundamental revival in the real economy is still sometime away. Our reading is that after this kind of rally probably we are heading for a small pause which, according to us, is quite healthy for the markets, he adds.

  • Hold on to long positions, says Mitesh Thacker. One of these days we might have a breakout which might be stronger, which might see a broader participation and then we may look at a quick upside, but for the time being, it remains upwardly or positively biased market but with some kind of slow pace. What traders need to look is some kind of threat of reversal or profit booking happening. So as long as we are not breaking 8320, I would suggest holding on to long positions, he says.

NIFTY 3-Month

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