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Market Report

Thursday, 05-May-2016

NSE

  • The Sensex ended the day at 25,262.21 today, up 160.48 points or +0.64 per cent, while the broader Nifty50 barometer closed at 7,735.50 today, with a gain of 28.95 points or +0.38 per cent. Strong cues from European markets and the passage of the finance bill in the Lok Sabha helped sentiments on Dalal Street today. This helped domestic stocks snap a three-day losing streak.

  • The market opened on a strong note in the morning, with the S&P BSE Sensex rallying 100 points. From then on, the 30-share index had a steady rise before weakness set in around midday. But as soon as the European markets opened, the market got a further shot in the arm, and notched up big gains in the last half hour of trade. Oil prices rose in global markets on news that production in the US fell to its lowest levels in 18 months.

  • The Nifty50 on Thursday formed a Doji pattern on the daily technical charts, which suggests indecisiveness among the bulls and the bears. Overall, the market is still in a state of limbo, with no real momentum on either side. The momentum on the Nifty50 may turn positive if the index breaches its recent high of 7,777 touched on May 3. This is the same level that the index had hit on March 31. From there, a rally in the Nifty50 lifted the index all the way to the 7,992 level. The 7,700 level will, on the other hand, provide support to the 50-pack index in the near future.

  • Experts were hopeful of a further upside in the market. What is important is that the Nifty has held on to the 7,700 level, said Mitesh Thacker. Holding on to important daily pivot is good. We might be choppy, but if we can manage to hold on amid this choppiness and not break below 7,700-7,690 levels, then we might possibly look to resume the upward move after a few days of choppiness or consolidation. That may then help the market get back to the 7,870, or possibly 7,980 level, on the upside, added Thacker.

NIFTY 3-Month

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