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Market Report

Tuesday, 27-Jan-2015

NSE

  • The Nifty extended its winning streak for eighth consecutive day and closed above 8,900 for the first time. It hit an all-time high earlier in the session on the back of dollar inflows on the hopes of economic recovery and improvement in earnings in the coming quarters. The 50-share index ended at an all-time closing high of 8,910.50, up 74.90 points or +0.85 per cent. It hit a record all-time intraday high of 8,925.05 and an intraday low of 8825.05 in trade today.

  • The BSE Sensex opened higher at 29,451.65, and touched an all-time high of 29,618.59. It later settled at a fresh closing peak of 29,571.04. The 30-pack index was up 292.20 points, or +1.00 per cent, for the day led by financials and ITC while capital goods shares gained on hopes of order inflows after the breakthrough in the Indo-US treaty for civilian nuclear projects.

  • The S&P BSE Sensex has already rallied over 1700 points in a matter 17 trading sessions in the first month of the calendar year 2015. However, the euphoria is not over yet, with most analysts on Dalal Street anticipating another 5-10 percent kind of surge in benchmark indices ahead of the Budget 2015 due next month. The pre-budget rally, which is already in progress, will strengthen going forward and push the Sensex and the Nifty to a fresh record high. The Sensex may hit levels around 33k and the Nifty should be able to break through its crucial psychological resistance level of 9k and hit 9300 ahead of the Budget 2015, say experts.

  • Increased buying by retail investors likely to boost markets in coming months, says Prabodh Agrawal of IIFL. We've had inflows into domestic equity mutual funds of more than Rs 50,000 crore in the last seven months, which is the highest in history. Retail investors have been out of equity for more than six years. Since 2008 there has been very little retail participation. During the period, the market was being driven almost entirely by the FIIs. Domestic mutual funds and retail direct participation were not there. So, This is one of the themes that make us very bullish going forward, he says.

  • The market remains in an uptrend and continues to get more and more over extended, says Ashwani Gujral. We just have to see when and where the market starts consolidating but overall, banks are moving here whereas IT has had a fairly negative day and if that remains a case with one index positive with the other negative, possibly, we are getting into some sort of sideways zone fairly soon. So just hang on to your positions, he says.

  • Nifty may touch 8,950-9,000 levels in short term; 8,800 to lend support, says Mitesh Thacker. Broadly, the trend in the market is on the upside. We have had the highest closing, but there are also some worrying signals of choppiness and volatility. The market is definitely stretched -- it has run away too far from its short-term averages. We have had nearly 600 points plus kind of rally in the Nifty over the last seven-eight sessions. Hence, we expect a consolidation to take place. It is difficult to pinpoint which day, which part of the week, it will start happening. But currently, no concrete signal of a reversal has been seen as yet, he says.

NIFTY 3-Month

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