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Market Report

Wednesday, 27-Jan-2016

NSE

  • The benchmark BSE Sensex closed marginally higher at 24,492.39 today, up 6.44 points, or +0.03 per cent. The NSE's Nifty50 index ended the day at 7,437.75 today, up +0.02% per cent or 1.60 points.

  • The domestic equity market closed flat today after a volatile session, on caution ahead of the expiry of January derivative contracts tomorrow and the outcome of the US Federal Reserve's two-day rate-setting meeting later today, which is widely expected to keep interest rates unchanged.

  • Global cues were mixed today, with crude prices retreating to sub-$30 a barrel mark on data that showed a surge in US inventories, while Chinese industrial profits remained weak, and at home, domestic companies continued to report a mixed set of earnings numbers. Chinese stocks sank again today while other Asian markets rose and European markets retreated.

  • The domestic stock market may be trying hard to bounce back from the recent downturn, but the derivatives market has an out-and-out bear market story written all over it. With just one session to go before the expiry of January series futures and options contracts, 96 per cent of the stocks that trade in the F&O segment have lost up to 33 per cent of their market value during the month. At the same time, many of these counters are seeing a rise in open interest, which suggests bearish bets all over the market.

  • I believe that technically 7,625 remains to be a key resistance level, as global volatility fails to show signs of abatement, said Kunal Bothra of LKP Securities. Second day of a rangebound momentum was seen on the benchmark index, Nifty. Market breadth remained positive though there were some inconsistent sectoral trends seen within the day. With expiry for January series scheduled tomorrow and the crucial Fed Meet today, traders continue to remain cautious. Hence, I believe that the market would continue to consolidate, he added.

NIFTY 3-Month

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