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Market Report

Thursday, 09-July-2015


  • After remaining in a thin range for most of the session, the 30-pack S&P BSE Sensex eventually settled 114.06 points lower or down -0.41 per cent to close at 27,573.66 today. The Nifty fell 34.50 points, or -0.41 per cent, to close at 8,328.55 today. Selling in IT majors TCS and Infosys weighed heavy on indices. Weakness in index heavyweights such as Reliance Industries and ITC added to the sentiment. The Nifty failed to hold 8,350 at closing today.

  • Benchmark indices ended lower for the third consecutive session as investors turned cautious and booked profit in IT shares ahead of first quarter earnings from TCS later today. However, rally in capital goods shares ahead of May IIP numbers on Friday stemmed the downside. Market participants would be keenly eyeing the macro-economic data, which will be unveiled in the coming days. Also, the progress in monsoons for the month of July is a key indicator that could dictate the terms on bourses.

  • Globally, investors are watchful of the developments in China. Chinese stocks rebounded around +6% today, as Beijing's attempts to stop a massive sell-off that had upset the global markets appeared to have yielded some results. Further, European shares are rallying on hopes that creditors would work out with Greece to avoid Grexit after Athens presented fresh proposals on Wednesday. Greece is reportedly rushing to finalize reforms and remain in euro.

  • The current correction has completed a right shoulder formation of the an 'Inverse Head and Shoulder' pattern (Bullish pattern) seen on weekly charts, says Ranak Merchant, Technical Analyst. In the event the multiple support zone of 8270-8329 holds, the formation would have been complete, and a rally thereof could be expected. Traders should watch the support zone for re-initiating long positions with initial targets placed near 8500, she adds.

  • A break below 8,250 on the Nifty would put an end to upside momentum, warns Ashwani Gujral. I do not think that today's fall has opened up doors for any big downside. For me, 8,250 on Nifty is very important because a breach of that would mean that the entire upside is over. As long as that level holds on, I would think that we are in a sideways market. For Friday, I will be watching Bank Nifty. The index is in a narrow range. What we want is to let it break on one side. Let us see if that can happen, he says.

  • After market hours: Tata Consultancy Services (TCS), India's largest IT services exporter, today reported Profit After Tax (PAT) of Rs 5709 crore for the first quarter of the current financial year. This is a rise of +12.9% YoY. TCS said first-quarter revenue rose 3.5% sequentially in dollar terms, at the lower-end of the range expected by analysts. The company reported a margin of +26.3%, higher than what analysts had expected.

NIFTY 3-Month

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