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Market Report

Wednesday, 09-Sept-2015

NSE

  • Continuing with its winning streak for the second straight session, the 30-share BSE Sensex surged by 401.71 points, or +1.59 per cent, to close at 25,719.58 following an upswing in Asian markets and an overnight rally in the US market. The 50-share barometer, Nifty, closed at 7,818.60, up 130.35 points, or +1.70 per cent. CNX Bank Nifty surged over 200 points today.

  • Other Asian markets closed higher on expectations that China would announce more stimulus to support the economy after the August trade data print came in weak. Signs of stability in Chinese markets and the highest single day gains posted by Japan's Nikkei boosted investor sentiment. Further, a strong rupee and broad-based buying across the counters led by index heavyweights aided the rally on the D-Street.

  • For Nifty, there are two strong gaps which the index has to fill to start a strong uptrend. The first one is at 7950 and the major one is around 8050-8150 levels. Till then all the rallies may appear to be just short lived and could induce selling pressure at these resistances.

  • Nifty has strong resistance at 7,950, says Sandeep Wagle. Once 7,950 is crossed on a closing basis and I want the price to stay above that to determine a move towards 8,100-8,150. So, I do not think we are still out of the woods but yes another day or two of positivity very likely and the Nifty range is 7,750 to 7,900, at least, for tomorrow. I would place all my stop loss at little below 7,750 and in case that is taken out I would be out of the long positions, he adds.

  • Markets may have discounted Fed event; Nifty may reclaim 8,200, says Ashwani Gujral. Now it is clear that with this turmoil Fed will not act. If we are able to take out today's highs of about 7,850 tomorrow then further short covering and more buying will set in. Then you will start seeing more follow through, more confidence come back. And then, once fresh buying comes in, you see more rallies. Given the way we have fallen steeply it is possible that we may rise, too, in a similar manner gapping up for two or three sessions and soon you will find you are at 8,000, he adds.

NIFTY 3-Month

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