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Market Report

Wednesday, 13-Jan-2016

NSE

  • An hour before closing today, the benchmark indices staged a rally of nearly 500 points on the Sensex to end the day strongly. While Sensex closed the session at 24,854.11 today, up 172.08 points, or +0.70 per cent, the broader 50-share Nifty50 logged a gain of 52.10 points, or +0.69 per cent, to end the day at 7,562.40 today, as buying emerged at lower levels.

  • Earlier, Sensex and Nifty50 had started the day on a strong note, but could not hold on to the gains and plunged to their new 52-week lows at 24,387.69 and 7,425.80 points, respectively. Most scrips had a roller coaster trading session, led by index heavyweight Reliance Industries while Infosys gained ahead of its third quarter earnings tomorrow.

  • Globally, Asian shares made their first real rally of the year after Chinese trade data handily beat expectations, offering a rare shaft of light for the global economy. European markets traded sharply higher on Wednesday despite continued wariness about low oil prices and China's economic slowdown.

  • The sharp intra-day fall seemed like basket selling by institutional investors, said Kunj Bansal of Centrum Wealth. Although banks continue to remain under pressure, the recovery in the latter half of the trading session was led by index heavyweights. Overall the global sentiment for riskier assets is weak, he adds.

  • Initiate long positions if Nifty50 breaks above 7,600, says Dr CK Narayan. We are in a very unclear zone. I think only a follow through tomorrow will indicate whether this big reversal has to be given some weightage. So I would be a buyer only on a breakout upwards of 7,600 or 7,615. Below 7,550, I would definitely turn a seller again. So, I would watch before I leap, the market has to show me which way to leap, he says.

NIFTY 3-Month

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