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Market Report

Thursday, 02-July-2015

NSE

  • The S&P barometer Sensex ended below 28,000 at 27,945.80 down 75.07 points or -0.27% and the Nifty closed below 8,450 at 8,444.90 down by 8.15 points or -0.10% today. The Nifty touched a high of 8,479.25 and a low of 8,433.20 in intraday trade today. The range for the Nifty in the entire day was only 46 points in a volatile session.

  • Markets finished the session on a weaker note, snapping a two-day winning streak, weighed down by IT shares even as auto stocks rallied amid good June sales. The strength in the US labour market for the month of June, indicating a possibility of a Fed rate hike in September, also dampened sentiment.

  • Meanwhile, investors worldwide are keenly watching the developments in Greece. As we reported yesterday, events in Greece is not expected to have any great in our markets, and whatever happens will ultimately be good for India. Analysts say that the recent rebound in markets despite global uncertainty clearly depicts participants giving more weightage to domestic cues as expected.

  • The outlook for inflation has improved in recent weeks, thanks to the strong start to monsoon season. Rains have been 16% above normal in June, resulting in an improvement in sowing patterns for major crops (pulses and oilseeds). While authorities still warn of weak rainfall in July, a crucial month in the season, the good start has improved reservoir levels which are likely to aid agricultural production, says a report from HSBC.

  • Market may remain sideways ahead of Greek referendum; expect rally to resume from Monday onwards, says Ashwani Gujral. I do not think, Greece issues will matter much. If Greece had to matter, Nifty would not be 250 points higher than where it was on Monday. So, even if there is an unfavourable outcome, you would see a maximum of 50-point gap down opening on Monday and an immediate recovery thereafter. As we are inching closer to a major event, there may be sideways movement. Post July 5 -- the day of Greek referendum -- we should start moving higher. The market looks technically strong and has the ability to absorb bad news. May be Friday will be a session of sideways momevent, but rally could resume from Monday onwards, he adds.

  • Nifty may hit 8,500 in a matter of days, says Sandeep Wagle. We will spend some more time trading sideways, with a positive bias. We may spend a 2-3 days in 8,400-8,500 band. Nifty has cleared an important resistance level of 8,420-8,430. We have not been able to clear 8,500, but it will be a matter of time before we do that. The moment we are out of 8,500, we will head straight away towards 8,800-8,850 levels. Whether it happens tomorrow or in the next week, could be anybody's guess. But I would stay positive, he says.

NIFTY 3-Month

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