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Market Report

Monday, 29-June-2015

NSE

  • The Sensex ended at 27,645.15 today, lower by 166.69 points or -0.60%. The 50-share Nifty ended at 8,318.40, down 62.70 points, or -0.75% after touching a low of 8,195.65 and a high of 8,329.45 in intraday trade. The crucial psychological level of 8200 was breached in intraday trade, while the Sensex slumped 602 points in intraday.

  • Markets ended lower today amid weak global cues, after the Greek government's pull-out from loan payment negotiations with creditors, and announcing a referendum on Greece's exit from the euro zone. There was an initial knee-jerk reaction as our markets fell on news that the Greek government on Monday confirmed that all banks will be closed full week, after a decision by the European Central Bank (ECB) not to extend emergency funding. However, the markets recovered later in the second session sensing the insulated nature of our markets. Other than slight impact on the currency, there would be no impact on stocks, say experts.

  • The global markets also witnessed selling pressure today in the midst of the on-going debt crisis in Greece. Shares in Asia ended lower, with a sell-off in Japan and China. Japan's Nikkei ended nearly 3% down. Shanghai Composite ended down 3.4%. Hang Seng ended down 2.7% and Straits Times ended 1.2% lower. The European markets also reacted to the developments in Greece, with Germany and France witnessing selling pressure. CAC-40 and DAX were down over 3% while FTSE eased 1.5%.

  • However, lenders clearly stated in no uncertain terms that the Greece deal is still possible. Comments from EU leaders that there is still scope for further negotiations stemmed the rout in global markets. Our market's swift move backed on volumes suggests that in addition to fresh positions, traders squared off short positions once Nifty breached 8,200 level.

  • Nifty unlikely to fall below 8,250; do not see uptrend either, says Mitesh Thacker. We were extremely overbought on the intraday charts. Therefore, some choppiness, some profit booking was on the cards. That happened slightly strongly with the negative news flow on the global front. In case there is some more news flow happening or some more volatility happening, 8,250-8,420 might be a range which the Nifty might consolidate into. If Nifty does not breach 8,250, then the directional call should be on the upside. Eventually, Nifty should start breaking above 8,420. Once that happens, we are then looking at 8,600 plus kind of targets, he adds.

NIFTY 3-Month

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