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Market Report

Tuesday, 01-Dec-2015

NSE

  • BSE benchmark Sensex ended 23.74 points, or +0.09 per cent, higher at 26,169.41 while the 50-stock barometer Nifty50 closed with gains of 19.65 points, or +0.25 per cent, at 7,954.90 today. Gains in Vedanta and Dr Reddy's Labs helped the BSE benchmark remain in the positive territory.

  • A dovish money policy from the Reserve Bank of India, which maintained status quo on policy rates on the expected lines, failed to lift the spirits on Dalal Street on Tuesday, as the benchmark indices closed flat. Done with the RBI policy review, the domestic equity market will now stay glued to any clue and the actual outcome of the December 15-16 rate-setting meeting of the US Federal Reserve.

  • Reacting to the RBI move, most of the rate-sensitive stocks from banking, realty etc edged higher. The S&P BSE Sensex traded with positive bias while Nifty50 traded above its crucial psychological level of 7,950 after money policy statement. Even though RBI maintains its status quo on rates, further rate cuts will be less than what the central bank delivered in calendar 2015. Most analysts on Dalal Street expect the central bank to slash rates by about 100 bps in next 12 months.

  • It is a very contracting and a narrow market but in case we start getting pat 7,960-7,970 on the Nifty50, I think we might actually head toward 8,040-8,050 on the upside but that should be it. For the time being, we are trading with positive bias unless and until 7,900 is broken, said Mitesh Thacker.

  • Nifty50 to face strong resistance at 8,000, said Sandeep Wagle. I do not have a very clear directional call. I would stick with my previous move, which is bullish. But as the index approaches 8,000-8,010, that, for me, is a very strong resistance zone. If we manage to clear that hurdle then we may see another 100-150 points rally, nothing beyond that. But as of now I would talk of a 7,900-8,000 range. In case 7,900 on the index is taken out, then the index may fall towards 7,780 or may be 7,750, he adds.

NIFTY 3-Month

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