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Market Report

Monday, 01-Dec-2014

NSE

  • The 50-share Nifty index ended at 8,555.90 today, down 32.35 points or -0.38 per cent. It hit all-time high of 8,623 and a low of 8,545.15 in trade today. The S&P BSE Sensex closed at 28,559.62, down 134.37 points or 0.47 per cent. It touched a high of 28,809.64 and a low of 28,538.44 in trade today.

  • Indian markets cracked in second half of the trading session on Monday, as traders preferred to book profits ahead of Reserve Bank of India's policy meet on Tuesday and a downgrade by Moody's of Japan's sovereign debt rating and weak european PMI data also dented sentiment.

  • Most analysts expect the central bank to maintain status-quo on key policy rates on Tuesday. According to a Street poll, almost 80 per cent of respondents expect RBI to hold key policy rates on Tuesday, while only 20 per cent of bankers expect a repo rate cut of 25 bps.

  • Most of the people are saying that there will be no rate cut - so if there is no cut, the market will take it on its stride and keep moving based on other triggers, says Sudip Bandyopadhyay of Destimoney Securities. But if there is a cut, for which I personally think there is a significant chance, will auger well for markets. This is an ideal time for rate cut, he adds.

  • Won't rule out a rate cut by RBI tomorrow, says Mythili Bhusnurmath of ETNow. I would not rule out a rate cut because the RBI Governor in his very first speech in September 2013 said that the central bank would never say 'never'. Moreover, as of now, there is both pressure and a very clear logic for going ahead with a rate cut since prices are bound to fall even further. When the logic clearly seems to suggest that there might be a case for a rate cut, I do hope that he exercises his judgement well for all of us, and goes ahead with a rate cut.

  • Expect market upside to continue, says Sandeep Wagle. I would call this as a sideways move. I still would not agree that there is some weakness in the price. Some consolidation and correction is possible, discounting another 40-50 points on the RBI credit policy. However, the uptrend looks still intact. I would still talk of 8,650-8,680 target over the next few days or weeks. I would talk of 19,000 levels being tested in the Bank Nifty. I still believe that Bank Nifty will outperform the Nifty and most of the stocks are still in the run for higher levels, he says.

NIFTY 3-Month

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