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Market Report

Tuesday, 25-Aug-2015

NSE

  • After correcting severely yesterday, Indian market staged a smart recovery today as the benchmark BSE Sensex spurted by 290.82 points, or +1.13 per cent, to close at 26,032.38 today. Trading in a wide range of 826.35 points during the day, the index managed to reclaim the 26,000-level after falling to its lowest since August 8, 2014, clocked in previous trading.

  • The NSE Nifty index also jumped 71.70 points or +0.92 per cent to end at 7,880.70 today, helped by a rebound in global stocks. Intra-day, it reclaimed the 7,900 mark to touch a high of 7,925.40 and a low of 7,667.25. Equity brokers said sentiments got a boost after the government said, to pass key reform bills, including GST, it might reconvene the Monsoon Session.

  • The Indian Volatility index or VIX, which had spiked up significantly yesterday, ended lower by 4.55% at 26.85 levels. However, the markets are likely to remain volatile in the near future as they track the market cues emanating from China and ahead of the impending F&O expiry on Thursday.

  • A day after the biggest-ever plunge in markets, RBI Deputy Governor S S Mundra sought to allay fears saying the problems are transient, driven by interconnectedness of the world economies and that India is capable of dealing with any kind of external shocks. The Reserve Bank of India Governor Raghuram Rajan had said after market hours on Monday that the central bank will not hesitate to use its reserves to curb the volatility in the rupee.

  • The rupee staged a sharp recovery of 76 paise to 65.89 intra-day against the dollar on expectation of foreign fund inflows tracking a rebound in domestic equities and recorded its highest intra-day gains since March 2014. On March 06, 2014, the rupee had gained 64 paise against the US dollar.

  • Go short on Nifty at 7950-8000 levels, says Ashwani Gujral. I am on the short side because this market is going down. It is making lower highs, lower lows. You have to play it with strategy instead of prediction. The strategy remains that the previous floor has now become the ceiling. Unless we can go through that ceiling, the same trade remains. As long as 7950-8000 holds on, I am on the short side. If 8000 starts to get crossed, I would change my view from down to sideways, he says.

NIFTY 3-Month

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