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Market Report

Wednesday, 25-Feb-2015

NSE

  • The 30-share Sensex hit a session high of 29,263.83 in the first half but succumbed to profit-booking in the last 90 minutes. It slipped into the negative zone and hit a low of 28,967.61 but support from select FMCG, IT, and Oil & Gas shares helped the Sensex settle with a marginal rise of 3.33 points, or +0.01 per cent, at 29,007.99 today. The Sensex has now gathered over 33 points in two straight sessions. The NSE index Nifty edged up by 5.15 points, or +0.06 per cent, to end at 8,767.25 today. Intra-day, it shuttled between 8,751.40 and 8,840.65.

  • Stocks opened on a strong footing on increased foreign capital inflows and a firming global trend on relief over Greek debt deal and as US Federal Reserve hinted that a rate hike is unlikely before June. Brokers said higher levels could not be sustained as participants turned cautious and indulged in profit-booking on nervousness ahead of Union Budget and monthly derivative contracts expiry. Besides, a mixed closing at other Asian markets and a weak opening in Europe also cast a shadow here, they added.

  • Tomorrow will see markets reacting to the Railway Budget as well as portfolio churning by investors as monthly derivative contracts expire. After the Economic Survey on Friday, the much-awaited Union Budget would be presented by Finance Minister Arun Jaitley on Saturday.

  • Weakness in Bank Nifty may trigger 100-point fall in Nifty, says Mitesh Thacker. Bank Nifty is getting closer to the weekly pivot levels of 18,700 and it is worrying me. A breakdown have constructed a strong possibly that we might see a stronger decline over here. The index may fall to 18,250, or may be to 17,800 levels. The Bank Nifty could bring correction to the Nifty. But you may not see Nifty falling by more than 100 points. Buying in other sectors may balance out the decline in the Bank Nifty, he says.

  • Markets may consolidate post Budget, says Ashwani Gujral. Once the event is out, I do not think stocks which have gone up 40-50 per cent can rally any further. Even when the dust settles, we will still be hanging around this 8,500-9,000 zone for Nifty because market needs to consolidate, take some time off before the next large move happens, he adds.

  • The ongoing tussle over the land acquistion Bill could have a rolling impact on the market. The Bill is crucial for the government and any backtracking now would send wrong signals to investors on government's ability to carry on with reforms. The reason why Land Acquisition Bill has become so critical is because all infrastructure projects are related to it. Most of the big infrastructure projects are stuck due to land acquisition issues. Non-passage of the Bill will be a big setback as it can slow down government's pace of work.

    The Bill was tabled in the Lok Sabha on Tuesday but opposition parties staged a walkout. The government has the required numbers in the lower house but it lacks the strength in Rajya Sabha. The Opposition is firm that the Bill won't pass through Rajya Sabha in the current form. The government doesn't have too much time on hand as the ordinance needs to be ratified within six weeks of the opening of the budget session. If the Bill is not passed by March 20, it will lapse. That will have a big negative impact on the market. Be ready for sharp correction if it isn't passed.

NIFTY 3-Month

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