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Market Report

Monday, 01-Feb-2016

NSE

  • The S&P BSE Sensex ended the day at 24,824.83 today, down -0.18 per cent or 45.86 points, while the NSE's Nifty50 reclaimed the psychologically sensitive 7,600 level during intra-day trade before ending the day at 7,555.95 today, down -0.10 per cent or 7.60 points. On Friday, the Sensex had closed at 24870.69 while the Nifty50 at 7,563.

  • Domestic equity benchmark Sensex witnessed a strong rally in morning trade but gave up all the gains through the day to end in the negative territory, pulled down mainly by bank and auto stocks. Capital goods major L&T rallied as much as 5 per cent after giving out solid sales guidance in December quarter results, which helped market sentiments and lifted the 30-pack index past the psychologically important 25,000 mark.

  • The seasonally-adjusted Nikkei India Manufacturing Purchasing Managers' index (PMI) moved to 51.1 in January, signalling expansion. Better-than-expected manufacturing data and unexpected stimulus measures from the Bank of Japan that lifted other Asian markets also boosted investor sentiments on Dalal Street. However, weakness on the bank counter amid NPA concerns, a fall in auto stocks on tepid January sales data and mixed cues from global markets pulled the indices down towards the end of the session.

  • Benchmark indices started the new month on a tender note as investors turned cautious ahead of the Reserve Bank of India's monetary policy review tomorrow. World's leading central banks are rushing to provide support to financial markets. The FOMC has maintained status quo awaiting stabilization in the global financial markets. While ECB has indicated it will increase liquidity by March, Bank of Japan has lowered the interest rate to negative -0.10% and PBOC is pushing funds into inter-banks system. Now its RBI's turn to navigate amid the pressure. Though the consensus expects a status quo awaiting the Budget, we should not be surprised to see positive news either by increasing the Open Market Operations or by lowering SLR or interest rates, say experts.

  • Nifty has resistance at 7,625 spot, and a closing above that can lead to another round of short covering, said Kunal Bothra of LKP Securities. Till then the markets may trade in the range of 7,420-7,625 over the next few days. Tomorrow is the RBI policy and intraday volatility can be expected, he added.

NIFTY 3-Month

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