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Market Report

Monday, 13-Apr-2015

NSE

  • Sensex, the benchmark BSE index, closed 165.06 points, or +0.57 per cent, higher at 29,044.44 points, while the broader NSE index gained 53.65 points, or +0.61 per cent, to close at 8,834.00 points today. Both indexes closed at their highest level since March 3.

  • Benchmark share indices ended higher today led by index heavyweight Reliance Industries while capital goods shares rallied led by L&T after it signed a MoU with France-based AREVA for nuclear power project. Further, the government will release data for March consumer price inflation later today.

  • While the Nifty corrected from an all-time high and retreated towards 200-DMA last month, it was expected that the broader markets will follow suit. However, the midcaps held on to their levels and have jumped to all-time high levels as the benchmarks bounced back. In this bull-run, the midcap stocks have outperformed the large caps by 20 per cent over the past year and the P/E multiple is at 25 per cent premium, the highest in at least ten years, says a Credit Suisse report. As there is some more upside seen in the Nifty from current levels, analysts are expecting the midcaps to move in an unchartered territory in the near term. However, after a stupendous rally in the midcap space, analysts are now advising investors to be cautious and at best book some profits.

  • Nifty to test 8,950-9,000; buy on dips, says Ashwani Gujral. One must note that, heavyweights IT and banking stocks are not showing much traction. Given that the laggards are leading the move up, the rise is likely to be slow and patchy. Nonetheless, the trend remains positive. Maintain your midcap portfolios as chances are higher that Nifty will soon test levels of 8,950-9,000. One should buy the indices on dips, he says.

  • Maintain positive bias as long as Nifty stays above 8,720, says Mitesh Thacker. What is happening is that banking and IT indices are not really showing punch. It is the oil and gas and a couple of pharma names which is showing strength. The trend might continue as the pace of the advance slows down in the short term. We expect to see 8,865 on the 50-pack index. Possibly, the index may eventually move higher to 8,950. As long as the Nifty start breaking below levels of around 8,720-8,730, I would continue to maintain a positive bias. In case we get a break below 8,720 that we will have to take a fresh look at the market, he says.

  • After market hours: March retail inflation has come in at 5.17 per cent. Easing of food prices, mainly milk and vegetables, has pulled down the March retail inflation to 3-month low. The retail inflation as measured by Consumer Price Index was 5.37 per cent in February, and 5.19 per cent in January. It was 8.25 per cent in March last year. The fall in retail inflation in March to a 3-month low of 5.17 per cent provides leeway to the Reserve Bank (RBI) to resume its rate-cutting cycle, says India Inc.

NIFTY 3-Month

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