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Market Report

Tuesday, 05-May-2015

NSE

  • After a strong pull back session on Monday, selling pressure continued unabated on Dalal Street today, with the Nifty slipping below its crucial psychological level of 8300 in trade today. However, markets recouped some of the intraday losses and the S&P BSE Sensex finally closed 50.45 points, or -0.18 per cent, lower at 27440.14 while the 50-share Nifty index ended 7.15 points, or -0.09 per cent, down at 8,324.80 today.

  • Yesterday's rally was mainly because of short covering with ONGC leading the gains. However, markets failed to sustain gains today as profit taking is seen emerging at higher levels. Further, the sharp fall in Chinese stocks also weighed on sentiment.

  • Even though the benchmark indices managed to claw back its key resistance levels in the previous session, analysts think that the worst is not over yet and the Nifty could further drift towards the level of 8200 in the next 2-3 weeks. The overall bias is still negative and that would change if the Nifty decisively closes above 8500, otherwise profit taking will resume, say experts.

  • It would be a plus for the market if the GST goes through in Parliament tomorrow, says Ajay Bagga. On Wednesday, the High Court would also take up the writ petition for the five foreign portfolio investors (FPIs). Even if the court comes up with a stay order, it will be positive. These will be two immediate triggers. As far as Land Bill is concerned, there is already a lot of uncertainty. So, if GST does not go through, it would have a negative impact. If it goes through, then it will be mildly positive.

  • Keep holding long positions; Nifty to outperform CNX IT, CNX Bank, says Ashwani Gujral. Overall, the market momentum is upward bias. We are heading towards say 8500-8550 on Nifty first. This trend should continue. Stocks such as ONGC are showing strength; certain banking stocks too are moving up. But we are seeing choppy action in midcaps. That said, there are no clear sectors other than oil & gas, which will show traction. You should continue to hold your long positions, he adds.

NIFTY 3-Month

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