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Market Report

Monday, 30-Nov-2015


  • Muted trends seen in European and other Asian markets weighed on investor sentiments and made the 30-stock Sensex pare much of the gains to end the day at 26,145.67, up 17.47 points or -0.07 per cent. Infosys and Tata Motors were the top gainers on the BSE benchmark. The 50-stock Nifty50 closed at 7,935.25, down 7.45 points, or -0.09 per cent.

  • Markets finished the first session of the eventful week on a flat note, so flat that one index closed marginally in the green while the other closed marginally in the red, as investors await for the GDP data for the September quarter later today amid persistent fund outflows. Meanwhile, RBI's fifth bi-monthly monetary policy meet due tomorrow is closely watched by the participants.

  • This week is going to be an eventful week as vital key macroeconomic data is due to be unveiled. We have the GDP data and fiscal deficit today, RBI policy review tomorrow, India's manufacturing purchasing managers' index (PMI) data for November also tomorrow, and services PMI data for the current month on Thursday.

  • Going by options data, there was massive call writing at strike price 7,900 (5.6 lakh contracts were added), and below that at strike price 7,800 (5.18 lakh contracts added). Both these levels will now act as crucial supports for Nifty futures. Heavy Call open interest at strike price 8,000 (32.89 lakh contracts) means it will be key resistance level for the index to cross. Above this level, strike price 8,100 with a concentration of 26.61 lakh contracts and strike price 8,200 with a concentration of 32.23 lakh contracts have emerged as two other key resistance levels.

  • Expect RBI to surprise market by 25 basis points rate cut, said Sanjay Dutt of Quantum Securities. I know the Street is not expecting it. But there is a good chance that the RBI governor might actually take everyone by surprise this time. So combination of two things - the GST deadlock breaks as well as some surprise from the RBI - may eventually lead the Nifty50 beyond 8,000 level, he says.

  • Remain positive on market as long as 7,900 on Nifty50 holds, says Mitesh Thacker. The Nifty50 has failed to get past 7,960, but the breadth still remains positive. The event (RBI review) might dictate the trend, but for the time being, as long as the support from 7,900 level holds, we maintain a positive bias. If we start breaking below 7,900, then I would look at some kind of lightening of long positions as well as exploring some shorting options.

  • After market hours today: India's GDP grows at 7.4% in Q2 of FY16; Manufacturing grows at robust 9.3%. India's economy picked up pace in the second quarter of the current fiscal, comfortably outpacing China in the same quarter, but the stronger growth has dampened hopes of a rate cut when the Reserve Bank of India reviews its monetary policy on tomorrow.

  • After market hours today: The government has reported a fiscal deficit of 74% of the budget estimate at the end of October 2015, according to official data released today. The numbers are better than 89.6% at the corresponding time last year, indicating a comfortable fiscal situation and support government's claim that it would be able to meet the fiscal deficit target of 3.9% of GDP for the current year.

NIFTY 3-Month

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