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Market Report

Monday, 11-May-2015

NSE

  • The Sensex ended the day at 27,507.30, up 401.91 points, or +1.48 per cent. The Nifty closed at 8,325.25 today, up 133.75 points, or +1.63 per cent.

  • The benchmark indices ended at the high point of the day, touching one-week highs, led by strong buying in metal, auto and banking shares. A rate cut by China and uplifting US jobs data kept the momentum going for the markets. The government's decision to ease its combative stance on MAT demand along, accompanied by a decline in global crude oil prices, hopes of a rate cut by Reserve Bank of India and the likelihood of a normal monsoon further boosted investor sentiment.

  • On the macro-economic front, data on inflation based on consumer price index (CPI) for April will be unveiled on Tuesday. On the same day, industrial production (IIP) data for March will also be released. Moreover, wholesale price index (WPI) data for April will be announced on Thursday. These events will dictate terms in the near term.

  • Need IT, banks to perform together to get Nifty out of correction phase, says Ashwani Gujral. Nifty will face immediate resistance at levels around 8,350-8,400. These are the same levels from where the index recently retreated. It is possible that Nifty may consolidate and move back by nearly 50 points, before seeing any fresh momentum. Once the index closes past 8,400, expect more short coverings. The next 50-70 points are really going to be crucial for Nifty, he says.

  • Break above 8,340 on Nifty can trigger 100-point rally on index, says Mitesh Thacker. Some sense of relief is coming from the CNX IT index. And there is nothing negative visible on Bank Nifty's charts. Therefore, my sense is that we might actually take less time to break above 8,340-8,330 range on Nifty. Once, that breakout happens, another 100-120 point should open up on the upside, he adds.

NIFTY 3-Month

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