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Market Report

Monday, 16-May-2016

NSE

  • The 30-share Sensex ends the day at 25,653.23 today, up +0.64 per cent or 163.66 points, while the broader Nifty50 closed at 7,860.75 today, up 45.85 points or +0.59 per cent. Reports of delay in monsoons, weak results posted by PSU banks and uptick in WPI weighed on investor sentiment at the beginning. However, buying in defensive shares has capped further downside and the market turned green at about 2 pm today.

  • The Nifty50 reversed course sharply today to end the day above its crucial psychological level of 7,850, which resulted in a 'Hammer' like formation on the daily Japanese candlestick charts. The pattern shows that the Market is trying to form a bottom. Despite the recent volatility, the Nifty50 is holding above the support level of 7,800, which shows that bullish traders are very much active and not ready to give up easily.

  • Globally, Asian markets closed with gains while the European markets were giving mixed cues. Relief came possibly from a fresh rise in crude prices, which hit their highest since October 2015. At home, India's wholesale price index (WPI) rose after 17 months, but exports contracted for the 17th straight month, which didn't provide any support to the investors.

  • Experts were hopeful of a further rally in domestic stocks. In a nutshell, the range for Nifty has narrowed significantly over the past couple of sessions, and now you are looking at a support closer to the 7,800 level on a closing basis. Keeping that in mind and looking at the intraday recovery, you could see some decent rally over the next couple of days, probably till 7,950 on Nifty, said Kunal Bothra of LKP.

NIFTY 3-Month

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