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Market Report

Thursday, 03-Mar-2016

NSE

  • The Sensex opened 200 points stronger and went on to add more than 350 points before closing at 24,606.99 today, up +1.50 per cent or 364.01 points. The NSE's Nifty50 reclaimed the psychologically crucial 7,400 mark and inched towards 7,500, but closed lower at 7,475.60 today, up 106.75 points or +1.45 per cent. The BSE's 30-share benchmark touched an intraday high of 24,640.51 and a low of 24383.28. The NSE's 50-share barometer swayed between a high of 7,483.95 and a low of 7,406.05. The BSE midcap index gained +0.58 per cent while the smallcap added +1.35 per cent.

  • The S&P BSE Sensex rallied over 1,600 points in three sessions to go above its 50-DMA, while the Nifty50 rose a little over 500 points in the same period. The domestic market bounced back a day after the benchmark indices hit their respective 52-week lows of 22,494.61 on the Sensex and 6,825.80 on the Nifty50 on the Budget Day, as commodity stocks extended the domestic equity rally to the third day and a stronger rupee fuelled fresh buying by investors.

  • The Post-Budget rally in the benchmark equity indices has created investor wealth worth Rs 5.32 lakh crore in just three sessions on the BSE. The S&P BSE Sensex has rallied 1,607 points, or +7 per cent, since Monday's Budget. The 50-share Nifty50 has seen its value surge by 488 points, or +7 per cent, in the same period. The two indices closed with solid gains of 364 and 107 points, respectively, today. Sentiment, not global cues, has been driving the market.

  • Stocks defied weak signals from European markets and rallied as Prime Minister Narendra Modi sought the Opposition help to get the much-delayed goods and services tax bill cleared in Parliament. Global investment bank Goldman Sachs report, projecting a bullish outlook for the Indian economy, also helped sentiments.

  • After breaching the crucial resistance level of 7,250 today, experts believe the 7,500 level should be the next target for the 50-pack Nifty. My sense is that, short covering is going on. What I would want to add is that the trades that are going on today are shorts built at higher levels in expectation that the market is going to fall. But we seem to be headed towards 7,500-7,550 levels, said Dr CK Narayan.

  • I think the market is looking very strong. There is absolutely no doubt about it. If RBI does come up with a rate cut, I am reasonably confident that we will have Nifty50 touching 7,500 soon. However, if that rate cut does not materialise within the next few days, the market will take stock and there will be some profit booking, said Sudip Bandyopadhyay, an independent market expert.

NIFTY 3-Month

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