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Market Report

Wednesday, 27-May-2015


  • The Sensex ended the session at 27,564.66, higher by 33.25 points or +0.12%, while the Nifty settled flat below the crucial technical level of 8,350 at 8,334.60, down 4.75 points or -0.06%. In intraday, the Nifty touched a high of 8342.85 and a low of 8277.95 in a day of big swings. The market closed so flat that one index was in the green while the other closed in the red.

  • Markets ended the session on a mixed note, amid choppy trades, as investors turned cautious ahead of May F&O expiry due tomorrow. Disappointing earnings from Tata Motors and Tech Mahindra were a major drag on the markets. However, buying demand among financials and oil shares limited the losses to a great extent. Meanwhile, the sentiment was dampened further by concerns surrounding US interest rate hike after the US reported better-than-expected economic data.

  • The week, as expected, was volatile as we head into NSE Derivatives expiry tomorrow followed by the RBI policy on June 02, says Ranak Merchant of Sushil Financial Services. Last week's hopes of a pullback were shattered as Nifty faced stern resistance near the psychological barrier of 8,500, world market weakness to be blamed along with a series of disappointing results. Today's trade saw Nifty slip below an important support of 8,341 and towards the next crucial support zone of 8,242-8,270. A move above 8,341 is keenly eyed for a pullback towards 8,449 for starters and then beyond, she adds.

  • Nifty is now close to the lower band of the weekly range, but it could continue to witness pressure during the day. A close only above 8380 would signal some relief, else it could continue to deteriorate and move towards 8200, said a Motilal Oswal report.

  • See inherent strength in the market; Nifty to hit 8,450 soon, says Ashwani Gujral. For the moment, Nifty has hold on to 8,280 level. It still appears like a small consolidation and Nifty may find some reasons to hang around to 8,280. The market does not feel like it has great downside momentum. It had all the reasons on Wednesday to go down. But the Nifty managed to survive on a bad day that observed poor results and weak cues from global markets. That tells you there is a relative strength. There have been some expectations of rate cuts, but the market knows that. Hence, it is not the rate cut trigger that took the Bank Nifty higher. There is an inherent strength, which helped Nifty and Bank Nifty to hold on to 20-DMA. Therefore, I would still bet on Nifty rising past 8,450 sooner than later, he adds.

NIFTY 3-Month

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