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Market Report

Wednesday, 29-Apr-2015

NSE

  • The S&P BSE Sensex finally closed the day at 27225.93, down 170 points or -0.62 per cent. It touched a high of 27,438.96 and a low of 27,176.54 in trade today. The Nifty ended at 8239.75 down 45.85 points or -0.55 per cent. It touched a high of 8308.20 and a low of 8219.20 in trade today.

  • Benchmark indices failed to build on the momentum witnessed in the previous trading session and closed around their respective 200-days moving average today, a day ahead of April F&O expiry due on Thursday. Markets ended lower on selling pressure by foreign funds amid worries surrounding retrospective taxation with index heavyweights HDFC and ITC leading the decline.

  • The sell-off in the markets so far in the month of April were largely triggered by concerns that have cropped up with respect to the MAT issue pertaining to the FIIs, muted earnings growth shown by India Inc. in Q4, and below normal monsoon, say experts. Apart from that foreign investors are slowly moving out funds from India to other emerging markets such as China, Russia etc. which is also creating some amount of pressure on Indian markets.

  • In another development, shares of telecom services provider Idea Cellular and Bharti Airtel fell by up to -5% on the bourses today on profit booking despite reporting a good set of numbers for the quarter ended March 2015 (Q4).

  • Crude oil prices dipped today as oversupply outweighed political uncertainty in Saudi Arabia where King Salman replaced the crown prince as well as several senior ministers and the chief executive of national oil company Saudi Aramco.

  • Expect market to recover by 5% post April F&O expiry, says G Chokkalingam, Equinomics Research & Advisory. I firmly believe that a large part of the correction is over, he says. There are a lot of stocks, which have fallen 20-30 per cent. This has been the first time in the last two years that IT firms have disappointed and their stocks have weighed on the market sentiment. That said, going forward the next big trigger for the market would be results from the manufacturing sector, oil and gas and private banks, he adds.

  • Market may head north, rate sensitives likely to perform well, says Ashwani Gujral. It is fairly evident that private banks are leading whatever up moves we are getting. Bank Nifty has held on to all its Tuesday's gain. It traded in a very narrow range today. So, the way it is going to pan out is that you have a weak Nifty rally towards 8500, and possibly banks outperforming that along with rate sensitives. But, it does not appear like a major upside or a major bull move starting. An upswing seems to be in order and at some point the Nifty should start trading above 8300, he adds.

  • 8,300 on Nifty key to watch out for, says Mitesh Thacker. We have kind of stopped falling at least, but expiry on Thursday could be a day which could possibly give us some triggers. I expect Nifty to trade in a narrow range of 8,220-8,200 on the downside. On the upside, the index can test 8,300 level during the day. The said level has been visited three or four times in the last two days on the hourly charts. Thus, that is an important level to watch out for. In case, we start breaching 8,300-8,310 on Nifty, then we might have a stronger and a much better bounce back, he adds.

NIFTY 3-Month

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