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Market Report

Wednesday, 24-June-2015


  • The 30-share Sensex ended lower by 74.70 points or -0.27% at 27,729.67 and the 50-share Nifty dipped 20.70 points or -0.25% to close at 8,360.85 after reclaiming the crucial psychological level of 8400 in intraday trade. While a quick correction would deem healthy for the market, the resistance zone continues to be around 8,470 levels for the Nifty.

  • Markets ended lower, snapping their eight-day winning streak, amid profit taking in late trades on reports that the new proposal presented by Greece to avoid debt default was not acceptable to the creditors. Further, investors turned cautious ahead of the June derivative contracts set to expire tomorrow. In previous eight sessions, BSE barometer had zoomed by 1,433.39 points or +5.4 per cent as better-than-forecasted monsoon raised hopes of a rate cut by RBI.

  • Most analysts are of the view that despite near-term headwinds such as weak corporate earnings growth, slow pace of reforms, Greece woes and uncertainty around US Federal Reserve rate hike, trend in Indian markets still remains on the upside. Nifty is still down over 5 per cent since March, but corrections are part of every bull market, say experts.

  • Greek issue unlikely to weigh heavily on markets; keep long positions intact, says Ashwani Gujral. Today's fall was largely on expected lines. It helped the weak longs to exit. May be, we may have another 30-40 points of decline to around 8,300-odd levels, before the rally resumes again. Had it been 9,000, we would have come crashing down 150 points from the Nifty. But, it is still a fairly light market. I do not see the issue take the markets lower too much. The index should be back above 8,400 in a couple of days, he adds.

  • One leg of upmove over; it's time to consolidate, says Mitesh Thacker. There has been a minor breakdown today. This is due to the fact that we have had eight straight days of gains and we were quite overbought on the intraday charts. So, profit taking was expected. What is important is that Nifty should not break below key important levels on the downside. The first level would be around 8,300 and then 8,240. In case the Nifty manages to hold on to either of these levels and then consolidate for a couple of days and comes out of the overbought situation, then we are in for a stronger up move, which could push the index past 8,450-8,500. It may possibly help the index head towards 8,600, he adds.

NIFTY 3-Month

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