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Market Report

Thursday, 22-Jan-2015


  • Continuing its surge for the sixth day, the BSE Sensex crossed the landmark 29,000-level for the first time to hit a life-time high of 29,060.41. After paring some gains, the 30-share Sensex settled at an all-time closing peak of 29,006.02, up by 117.16 points, or +0.41 per cent, over the previous close. It surpassed the earlier record closing of 28,888.86 hit yesterday. The gauge has now gone up by 1,659.20 points in the six consecutive sessions. It took 50 trading sessions from November 12 to January 22 to reach the historic 29,000-level from 28,000.

  • Also, the NSE Nifty continued its winning run and zoomed to hit a fresh record high of 8,774.15, breaking its earlier record of 8,741.85 (intra-day) reached yesterday, with sustained buying by funds in healthcare, capital goods, metal and auto sector stocks supported by strong buying by foreign institutional investors (FIIs) and on optimism that the government will continue with the reform agenda. However, profit-booking at record levels trimmed some gains but the Nifty ended at a new record high of 8,761.40, up 31.90 points, or +0.37 per cent, surpassing its previous closing peak of 8,729.50 in yesterday's trade.

  • Improving macroeconomic data, surprise rate cut by the Apex bank last week and encouraging Q3 earnings by some bluechip companies and positive global cues buoyed the market and helped key indices to hit new highs, brokers said. There is also great expectations that the European Central Bank at its meeting later today would announce monetary stimulus measures.

  • Meanwhile, foreign portfolio investors (FPIs) remained the main driving force behind the ongoing bull-run. FPIs bought shares worth a net Rs 2,065.49 crore yesterday, Rs 592.79 crore today, and has been investing continuously in our markets for the last few sessions, according to provisional data from the stock exchanges. See our 'Market Statistics' page.

  • The Indian markets today, after surging to record high earlier in the session, have pared most of the intraday gains. According to dealers, traders have closed long positions on Bank Nifty and Nifty ahead of the much awaited announcement from the European Central Bank. The Street is expecting the ECB to announce quantitative easing in order to stimulate growth. The market has already factored in easing of 550 billion Euro. A number between 550-700 billion euros will make the markets happy and figure of 1 trillion euro will lead to market cheer. However, if the ECB announces a lower quantum, it could lead to a sharp market correction and that is keeping the traders on the edge, say experts.

  • Bank Nifty likely to add strength to markets, says Mitesh Thacker. As long as we are not breaking below 8720, the trend on a very short-term immediate basis should be considered to be on the upside. On the whole, this still remains a market which should be bought on every dip, long positions should be held on to and we had maintained targets of around 8950. And in case the Bank Nifty shows some momentum tomorrow, then Nifty might continue inching on the upside, he says.

  • Recommend investors to continue with long positions, says Ashwani Gujral. The good thing is that we have 160 points till about 8600 on the lower side. So even if there is a problem, and we have a 100-point decline, we are still above the key support. And overall as we have seen, banks are looking positive. So the market is going into the event fairly positive and if there is nothing wrong, chances are we should cross 8800 fairly easily. So now the stop remains 8600-8650 and we just need to continue with our longs, he adds.

  • Our offices will remain closed on Friday, 23-Jan-2015, on account of birth anniversary of Netaji Subhas Chandra Bose, which is a holiday in Bengal.

NIFTY 3-Month

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