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Market Report

Friday, 07-Aug-2015

NSE

  • Domestic markets ended the week on a muted note, with the S&P BSE Sensex falling 61.74 points, or -0.22 per cent, to settle at 28,236.39 on Friday. The broader 50-share Nifty index closed the session at 8,564.60, down 24.05 points, or -0.28 per cent.

  • The benchmark indices ended a choppy session of trade marginally in the negative as weak results declared by capital goods major BHEL led to fresh concerns on the earnings front and caution lingered ahead of US jobs data to be released later in the day. Major European markets were also trading with a negative bias.

  • On the weekly basis, benchmark indices recorded their second consecutive week of marginal gains. The S&P BSE Sensex rose +0.43 per cent for the week ended August 8. Nifty was up +0.37 per cent for the week.

  • The movement of index in near term will depend upon further reform initiatives to be taken by the government in the ongoing monsoon session of the Parliament. It will also be influenced by the June quarter results and macro economic data. On the macro front, data on both Consumer Price Index (CPI) data for the month of July and Index of Industrial Production (IIP) data for the month of June will be announced on August 12. WPI inflation data will be unveiled on August 14.

  • For the last three days, Nifty has been in a 50-point band, said Ashwani Gujral. It is basically in 8,550-8,600 band. If we are able to close on either side of the band with some force, then only you will get a significant trend. The market is contracting not only on daily basis, but also on on larger time frame. We are getting ready for big sharp moves, but that will take some time to happen, he said.

  • At the current juncture, the dynamics of market are pretty fluid, says Vivek Gupta of CapitalVia. What Nifty lacks currently is follow-up. Normally, such situations give rise to minor corrections and that is what we are expecting currently. The support levels are placed at 8450-8420-8350 in that order. On the upside, level of 8650, the recent high and beyond that 8850, the April 2015 high would place a bit of a resistance, he added.

NIFTY 3-Month

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