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Market Report

Tuesday, 17-May-2016


  • Right from the word go, the market rejoiced on a slew of good triggers and the benchmark Sensex rallied as much as 270 points at one point, before paring gains and ending the day at 25,773.61 today, up +0.47 per cent or 120.38 points. The Nifty50 reclaimed its crucial psychological level of 7,900, but ended lower at 7,890.75, up +0.38 per cent or 30.00 points.

  • The domestic equity market surged today, reacting to exit polls that showed gains for the ruling BJP in the just-concluded assembly elections, a fresh bounce in crude oil prices and solid trade in US markets in overnight trade. The market gave up some of its gains towards the end of the session, and this made some experts unsure of the momentum.

  • Benchmark equity indices have been moving in a narrow range over the past 12-18 months and a big win for BJP in Assam and gains in other states can act as a trigger for Nifty to break out of the 8,000 mark. A victory in the assembly polls can give Prime Minister Modi greater political clout and over time more strength in the Upper House of Parliament, which would give him and his party greater leverage to push through the pending reforms.

  • The bulls disappointed as they failed to build on the morning gains. A selloff from the day's high of 7,940 resulted in the formation of a Gravestone Doji pattern, which may have severe consequences in the for the bulls in the near future, unless they again make an attempt and successfully close above the 7,900 level, said Mazhar Mohammad.

  • We have been maintaining that the index is finding it difficult to trade. This two-day upward move looks slightly stronger but, I think, the Nifty will remain in the 7,950-7,980 range till the 8,000 level is filled with multiple supply zones. I am not sure if we will cross them immediately or take another pause and go back into the range, said Mitesh Thacker.

NIFTY 3-Month

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