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Market Report

Wednesday, 18-May-2016

NSE

  • After a weak start which saw the index plummet close to 270 points, the 30-share barometer S&P BSE Sensex closed at 25,704.61 today, down -0.27 per cent or 69.00 points. The NSE barometer Nifty50 settled at 7,870.15 today, with a loss of 20.60 points or -0.26 per cent.

  • The domestic equity market was left bruised in choppy trade today following heightened fears of a rate hike by the US Federal Reserve post better-than-expected retail inflation in the US took its toll on investors' sentiment. Plus, the third largest state-run bank by assets, PNB, reported the biggest-ever losses in Indian banking history. But the bears' control over the market loosened, and the market's losses were capped as traders began buying on dips.

  • Despite recovery in late trades, benchmark indices ended marginally lower amid weak global cues, with auto shares leading the decline on failing an international safety test. Prospects of higher interest rates in the United States pulled global markets lower after the latest data showed that US consumer prices rose in April at their fastest pace in three years.

  • The Nifty today closed below its crucial psychological resistance level of 7900, thus making a 'Hammer' like pattern on the daily candlestick charts for the second time in a row this week. After forming a 'Gravestone Doji' on daily charts, a 'Hammer' like pattern formed on the daily charts today signified that there is indecisiveness between the bulls and the bears, but sustained buying at lower levels tilted the trend in favour of the bulls.

  • Lacking FII flow, depreciating rupee, absence of any major trigger is keeping the upside limited and Nifty has been struggling from last six months to test the psychological 8000 mark, said Chandan Taparia of Anand Rathi. Now, it requires a hold above 7900 zones on closing basis to witness an up move towards 7950-7979 levels while holding below 7850 may drag it towards next crucial support of 7780-7777 zones, he added.

NIFTY 3-Month

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