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Market Report

Tuesday, 20-Jan-2015


  • India's benchmark share indices Sensex and the Nifty ended at fresh record closing highs today led by financials and index heavyweight ITC while metal stocks surged after better-than-expected fourth quarter economic growth from China.

  • The 30-share Sensex ended 522.66 points higher, or -1.85 per cent, at 28,784.67 after hitting fresh all-time high level of 28,829.29 and the 50-share Nifty closed up 144.95 points, or +1.69 per cent, at 8,695.60 after touching life-time high level of 8,707.90 today.

  • The 50-share Nifty index extended gains for the fourth straight session to surge past its crucial psychological resistance level of 8700 for the first time ever in trade today. The index has gained 6.3 per cent from its recent lows touched on January 7, 2015. The index is the third best-performing global market and the sharp move suggests the bull-run is in full force and more higher levels are expected in the near term.

  • According to analysts, the market is building in a lot of optimism ahead of the Union Budget. The government is expected to announce a slew of reform measures to push growth. There are also expectations of lower interest rates in 2015.

  • Expect Nifty to move higher from current levels, says Mitesh Thacker. This appears to be a market which has gone through this consolidation phase of mid December to mid January and now is starting a fresh leg. What is important is that this is a market which is clearly after going through correction, has taken only about five or six sessions to break into fresh highs. There is lot of momentum and this is likely to extend and suggest further upside. Theoretically, I would not be surprised to put a target of 9200, he adds.

  • Expect Nifty to go to 9200 levels in near term, says Ashwani Gujral. We should not go back, violate the previous highs and go back down. This is not the time to buy, but if you have your portfolio, keep your stop, say, around 8600-8625. As long as that level holds on, that is about 100 points, you should continue to ride on the upside. Today's momentum showed that there was short covering and there was big money because big stocks were moving. Once big stocks start moving and big money is there to support the market, the cats and dogs will also run, he adds.

NIFTY 3-Month

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