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Market Report

Monday, 05-Jan-2015

NSE

  • Sensex, the BSE 30-share index, resumed trading higher and again crossed the crucial 28,000 mark to touch a high of 28,064.49 points on the back of across-the-board gains on hopes of push to economic reforms. However, profit-booking in recent gainers towards the fag-end trading dragged the Sensex down to the day's low of 27,786.85 before settling 45.58 points, or -0.16 per cent, down at 27,842.32 today. In the last six sessions, it had risen by almost 680 points.

  • The broad-based 50-issue Nifty of the NSE also eased by 17.05 points, or -0.20 per cent, to end at 8,378.40 today. Intra-day, it went past the 8,400-level to touch a high of 8,445.60. It touched the session's low of 8,363.90.

  • Brokers said sentiment remained upbeat at the outset after the government promised bold reforms in the banking sector at the two-day bankers' meet 'Gyan Sangam' but higher levels could not be sustained as participants indulged in booking profits in bluechip stocks at prevailing levels amdist a weak trend overseas. Benchmark indices ended lower amid choppy trades weighed down by IT shares after the rupee recovered against the US dollar. Markets are expected to consolidate gains this week and investors would take cues from earnings with Infosys kicking off the December-quarter result season on Friday.

  • The market is again expecting some sort of good reforms coming in and earnings recovery would be in fact a by-product of all these reforms, says Devang Mehta of Anand Rathi. There are a lot of reforms which would come up. Also, the pre-budget rally as people call it can also probably lead the market to somewhere around the last highs that the market made, which was around 8600-8650. But I do not see the markets getting out of a range of around 8200 to around 8600," he adds.

  • Remain positive on Nifty, says Mitesh Thacker. 8350-8340 is a good support range. Try to buy anything around 8360-8350 would be good levels to add on to long positions and maintain a long bias. Unless and until we start breaking below 8300, I would remain positive and 8550 could be a good target for the Nifty in the next few days, he adds.

  • Market may remain choppy for some time, says Ashwani Gujral. Today has been a choppy day. It is not going to be a one way up style rally and you will have a fair degree of choppiness. As long as 8300-8310 is sustained, chances are that upside will resume again, particularly on the banking stocks. Overall IT remains one of the weaker groups. Otherwise, some individual sectors have moved up, but broadly nothing much has happened, he adds.

NIFTY 3-Month

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