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Market Report

Monday, 25-Apr-2016

NSE

  • The S&P BSE Sensex ended the day -0.62 per cent, or 159.21 points, lower at 25,678.93 today. The broader Nifty50 of the NSE closed at 7,855.05 today, down 44.25 points or -0.56 per cent. Markets ended lower today amid profit taking after recent gains with index heavyweight Reliance Industries leading the decline.

  • The Nifty50 succumbed under strong selling pressure as it approached its crucial resistance level of 8,000 and is now consolidating below 7,900. The Sensex struggled to climb the crucial psychological level of 26,000. Analysts said this consolidation phase is likely to continue for some more time, as the market awaits fresh triggers. However, stock-specific action is likely to continue.

  • Meanwhile, traders are turning cautious ahead of the April derivative contracts on Thursday. All eyes were on the policy decisions of the US Fed, which is meeting over Tuesday and Wednesday and that of Bank of Japan, which is scheduled to come out with money policy statement on Thursday. Among local factors, the second half of the Budget session that started today, also influenced investor sentiment. The Parliament session again brought the focus on long-pending bills such as the Goods and Services Tax.

  • Most market experts remained hopeful. Dalal Street has reversed its lower top-lower bottom pattern to start making higher tops and higher bottoms. If this pattern is to continue, the Nifty50 should find support somewhere between 7,500 and 7,550 levels. That is a good 3-3.5 per cent correction from the current level, which should be very healthy because it would take away the excesses that have got built over the past three weeks, said Jimeet Modi of SAMCO.

NIFTY 3-Month

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