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Market Report

Tuesday, 28-Apr-2015

NSE

  • The 30-stock Sensex ended the day at 27,396.38, up 219.39 points or +0.81 per cent, while the broader 50-share Nifty closes below its crucial level of 8,300 at 8,285.60 today, up 71.80 points or +0.87 per cent. The Nifty touched a high of 8,308.00 and a low of 8,185.60 in intraday trade.

  • The markets had ended lower for the third straight day and the Nifty had slipped below its 200-DMA on Monday's session. And the struggle continued this morning, as the indices touched their lowest level in almost 16 weeks at the onset of the trading session. However, short-covering at lower levels helped the indices to snap a three-day losing streak. A late-noon burst drove the Sensex higher by 300 points to touch an intra-day high of 27,482 and the Nifty momentarily reclaimed the 8,300 mark to touch 8,308 before surrendering a part of the gains in the last 30 minutes of trade.

  • Nifty can test 8,480 on pullback rally, but no signs of bottoming out seen, says Mitesh Thacker. We have managed to get some kind of bounce back, which is quite strong. An oversold market can definitely give us a stronger pullback. That said, I am still not looking at signs of bottoming out. On the upside, 8,350 on Nifty will be the first resistance level in the ongoing pullback rally. For the time being, it is an oversold market, which is trying to give some bounce back. Let us see how strong the bounce back is. Possibly, in the next one-two days, we will have a clear answer on that. In case the ongoing bounce back fizzles out without much of strength, then we might look at very sharp cut happening in the May expiry, he says.

  • Expect Nifty to find support around 8000 levels, says Mayuresh Joshi of Angel Broking. It is very difficult to predict how far the markets can correct from the current levels, but 8000 is where we think that the market should find some amount of support. Corporate earnings were expected to be weak, reform bills were probably not expected to pass through, valuations were a tad bit on the higher side. So everything was getting factored into the prices. But if any of these factors goes for worse, you might be looking at lower levels. In that scenario, a 5-7% correction even from the current levels is not ruled out, he says.

  • Brace for volatility ahead of F&O expiry; May series likely to be a different story, says Ashwani Gujral. The way Bank Nifty has bounced back from its support levels give credence to the theory that if we are able to maintain the 200-day moving average, the market could actually be bottoming out. So, at 200-day moving average of 8,200, we could see a maximum fall of 100-150 points on Nifty. That way we are seeing buying in the market suggests that that if we hold the 200-day moving average, short coverings itself will take this market quite a bit higher. So, we may see some volatility on Wednesday due to F&O expiry, but May series could be a different story, he adds.

NIFTY 3-Month

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