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Market Report

Thursday, 13-Aug-2015

NSE

  • Snapping its four day losing streak, the S&P Sensex rose 37.27 points, or +0.14 per cent, to settle at 27,549.53 amid volatile trades today. The broader 50-share Nifty index gained 6.40 points, or +0.08 per cent, to finish the day at 8,355.85 today. Even as a tumbling rupee and deadlock in Parliament were weighing on the sentiment, banking stocks saw huge buying interest, supporting the benchmark indices.

  • Benchmark indices ended the session on a flat note amid volatility. Pharma shares gained amid a slide in the rupee and banking shares rallied on hopes of a rate-cut by the central bank on the back of easing consumer price inflation and growth in industrial production. However, the upside was capped as the monsoon session of Parliament came to an end without the passage of any key legislations.

  • The RBI will be under pressure to cut rates due to the better than expected CPI and IIP numbers, which is providing immediate relief to rate sensitive stocks like Banks and Auto, says Vinod Nairn of Geojit BNP Paribas. But due to the Yuan devaluation, the impact on export & import oriented sectors like Metals, Mining, Textiles and Chemicals is very high, he adds.

  • Sell on rallies as long as Nifty holds 8450, says Ashwani Gujral. You would try to take short trades between the 8420-8450 zone. Post that, at some point chances are 8300-8320 may get taken out, particularly if CNX IT stops responding to the Rupee decline. Chances are that once that happens the market will find it easier to fall. Therefore, for the moment on all rallies it is a sell unless of course we start closing above 8450, he says.

  • Nifty has strong support at 8320, keep trading on short side, says Mitesh Thacker. In the short term, the index might stop falling and you might see some kind of sectoral diversity happening. 8320 is the level to watch on the downside. Below 8320 it will be a clear cut declining market and possibly you might see IT or pharma and the stronger sectors come into some kind of correction zone. Therefore, 8320 would be the focus level; but, the idea would be to keep trading more on the short side, he adds.

NIFTY 3-Month

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