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Market Report

Wednesday, 10-June-2015

NSE

  • The 30-stock benchmark Sensex ended the day at 26,840.50; up 359.25 points, or +1.36%. The broader 50-share Nifty closed the session at 8,124.45; up 102.05 points, or +1.27%.

  • Markets bounced back after seven straight day of losses on value buying and short covering in blue chip stocks led by index heavyweight Reliance Industries. The the 'Monsoon Effect' had played havoc last week with over -3.50% decline on the benchmarks. The current week has re-emerged from lost ground, gaining strength at the psychological support of 8,000, thereby forming a 'Monthly Double Bottom'.

  • Nifty surged over 120 points in intraday trade after US index provider MSCI Inc, in a relief to Indian markets, said that it will hold off including China A shares in one of its key benchmarks, but expects them to be included once outstanding market accessibility issues are resolved. Expert feels that this development will bring value to Indian stock market.

  • Expect a strong rally if Nifty breaks 8,150-8,200 range, says Mitesh Thacker. It appears that some kind of bounce back has started. But, the level of 8,150 is yet to be captured by Nifty on closing basis. In case we get a closing above the level, the market should extend gains. For Nifty, 8,200 would be an important level. Once, we start getting past 8,150-8,200 band, this market can even try and test levels beyond 8,350-8,400, he says.

  • Break above 8,250 on Nifty would confirm bottoming out, says Ashwani Gujral. In downtrends, downswings are larger than upswings. We have had an upswing from 8,000 to 8,470 and then a downswing back towards 8,000. Given the way largecaps are moving, it is possible that the market maybe just putting in a bottom. For this, Nifty would need a confirmation above 8,200-8,250. There is a good chance of that happening, given that we have had already almost four months of correction, everything bad that was anticipated is possibly in the price, he says.

NIFTY 3-Month

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