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Market Report

Wednesday, 07-Oct-2015

NSE

  • The S&P BSE Sensex rose 102.97 points, or +0.38 per cent, to close at 27,035.85 while the broader market barometer Nifty50 climbed 24.50 points, or +0.30 per cent, to end at 8,177.40 today.

  • The domestic equity market closed near its one-and-a-half month high after trading rangebound throughout Wednesday. The benchmark indices were led higher by oil explorers, which rose tracking a rebound in crude oil prices, while auto stocks gained on hopes that the forthcoming festive season would boost sales.

  • The bounce in the market was also aided by metal stocks, which rallied on value buying and short covering at lower levels that emerged after the stocks of India's top metal producers fell to their lowest in 25 years. A tactical rally in emerging markets on some stability in China'a manufacturing PMI and weak US jobs data pushing US Federal Reserve rate hike expectations to March 2016, also aided sentiment.

  • Market players also awaited the earnings season, which will kickstart with tech giant Infosys announcing its numbers on October 12. Some key macroeconomic data, including inflation and industrial output growth, to be released later in the week will also influence market direction.

  • Bank stocks have to participate in rally to take market higher, says Ashwani Gujral. IT and banks are not really participating, so this is a rally now being led by oil and metals. Banks or IT have to come back and participate because this kind of honeymoon of commodities is unlikely to continue. Without them possibly another couple of hundred points supported by global markets. 8100 is your stop and let us see if we can cross 8300-8350, he says.

  • See Nifty hitting 8,350-8,400 level, says Mitesh Thacker. Anything you are buying around 8100 should give you good returns. 8250 is the first short term target but 8340-8350, even a 200-day average at about 8380 - that looks like to me the most likely target to be which the index might hit in the October expiry, he says.

NIFTY 3-Month

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