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Market Report

Wednesday, 22-Apr-2015

NSE

  • The Sensex ended the day at 27,890.13 today, up 214.09 points or +0.77 per cent. Nifty closed today's session at 8,429.70, up 51.95 points up, or +0.62 per cent. The 30-stock Sensex saw a wild swing of 561 points in the last two hours of trade. The Nifty fluctuated between a high of 8,449.95 and a low of 8,284.70 in intraday trade today. The markets today bounced back from a four-week low, snapping a five-session losing streak as blue-chips such as Sun Pharmaceutical Industries rose on value buying.

  • Markets opened higher and remained rangebound during the first half of the trading session today, only to fall sharply in late noon trades spooked by a weak monsoon forecast. However, a sharp rebound in late trades led by financials lifted the Nifty above the 8,400 mark.

  • On the political front, proceedings of the Parliament will be keenly watched as the government gears up to pass the Constitution Amendment Bill for the levy of Goods and Services Tax (GST) in the country which promises to integrate state economies and boost national growth. The bill was introduced in Lok Sabha in December.

  • Markets may bounce back on short coverings, says Prakash Diwan. In case some positive result were to follow up, with much more conviction, I believe that the next round is going to be through short coverings, which may push the Nifty higher by another 100-150 points. We have seen the index hitting a bottom in Wednesday's trade. We could probably see an upside or a bounce back of above 350-400 points. There is going to be a lot of value buying, he says.

  • Explore long opportunities if Nifty falls below 8,300 levels, says Mitesh Thacker. We have completed one leg of the decline, but we are not done with the overall downtrend as yet. We will soon find out where the upper and lower ranges are, but the initial thought is that the index should be around 8,500-8,525 on the upside and possibly 8280-8250 levels on the downside. So, the 50-pack might broadly remain in this range of about 250-300 points. Look at short covering or even exploring long opportunities at sub-8300 levels on Nifty, he says.

  • Stay cautious, market pullback may not last long, says Ashwani Gujral. We need to get past 8,600 on Nifty and 18,500-18,600 on Bank Nifty, before we can assume that the downtrend is over. There are good chances that Nifty may consolidated in the 8250-8450 region going ahead. That said, there are also chances that the Wednesday's recovery may set up a pullback trend and that you could have a couple of positive days ahead, he says.

NIFTY 3-Month

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