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Market Report

Monday, 12-Jan-2015

NSE

  • The NSE Nifty index reclaimed the 8,300-mark by rising 38.50 points, or +0.46 per cent, to end at 8,323.00 today. After staying in red for most part of the session, the broader indices gained pace in the last one and a half hours to end at one-week high on fag-end buying in capital goods, FMCG and IT shares ahead of retail inflation and IIP data releases.

  • The BSE Sensex resumed higher at 27,523.86 on initial buying but fell to a low of 27,323.74 on profit-booking. However, the index recovered during the afternoon session session to 27,620.66 on fag-end buying before concluding at 27,585.27 today, logging a gain of 126.89 points or +0.46 per cent from its last weekend's level. This is its strongest close since 27,842.32 on January 5. In three successive days, Sensex has gained over 676 points.

  • Meanwhile, provisional data showed that foreigners bought shares worth a net Rs 244.95 crore today after being heavy sellers for the last four days this month. If buying continues tomorrow, this could signal a turnaround.

  • Most Asian stocks ended lower amid concern that Europe's stimulus plans may not solve the euro region's economic woes. European markets were trading narrowly mixed as indices in Germany and the UK declined while France's CAC was quoting up. US stocks fell on last Friday following a two-day rally as December's jobs report gave a mixed view of the economy.

  • Expect market to remain range-bound till Budget, says Ashwani Gujral. While the Nifty could move up a bit more, banks are showing weakness. It is going to be two-way trading. As long as the Nifty remains sideways and do not do breach 8,100, it should be okay. Nifty will trade between 8,100 and 8,400 on a narrow basis. The market may remain in a range till the budget but overall the market looks positive, he says.

  • Nifty will be rangebound between 8250 and 8400, says Sandeep Wagle. The range is slowly shifting upwards. 8200 is what I talked of, now I can talk of 8250 as a bottom and to 8350 probably which can extend to even 8400 tomorrow or day after with a lot of stock specific positive moves, he adds.

  • After market hours today: November IIP beats estimates at 3.8%; December CPI inflation rises to 5%. The Index of Industrial Production (IIP) for the month of November was reported at 3.8% versus (-) 4.2% in October. This is way above the Street estimate of 2.7%. However, the Consumer Price Index (CPI) inflation for the month of December rose to 5%, driven by higher food costs. Since it remains within the central bank's target of achieving 6 per cent retail inflation by January 2016, analysts expect the RBI could soon cut interest rates following a hefty reduction in the oil import bill. These data should bring cheer to the markets tomorrow.

NIFTY 3-Month

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