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Market Report

Friday, 03-June-2016

NSE

  • The Sensex closed unchanged at 26,843.03 today, down only 0.11 points, or 0.00 per cent after hitting the crucial 27,000 mark in intra-day trades, while NSE's Nifty50 settled at 8,220.80 today, with a gain of 1.85 points or +0.02 per cent.

  • The opening was positive today just below 8,250 for the Nifty. The Met department pegged the expected monsoon rainfall at about 112 per cent of the annual average and global cues were also positive. But the domestic equity market still remained choppy and slipped into the negative zone twice through the day. The S&P BSE Sensex surged 100 points and Nifty50 rose above 8,250 in opening trade. But the market was slow and looked headed nowhere for most part of the day.

  • Markets finished today's session on a flat note - so flat that one index closed in the red while the other closed in the green - as profit booking emerged following a private survey which indicated slowdown in the country's services sector during May. However, Bombay Stock Exchange's cumulative market capitalisation has crossed the Rs 100 lakh crore threshold for the first time after it broke below it on January 1 this year.

  • The Nifty50 came under selling pressure soon after it breached the crucial resistance level of 8,250 today. In the process, the index formed a 'Spinning Top' on the daily candlestick charts, signalling indecisiveness. This candle is often seen as a neutral pattern and should be studied with other indicators and patterns on the daily or weekly charts. The market is likely to remain rangebound ahead of the Reserve Bank of India's (RBI) money policy review on Tuesday.

  • Experts attributed the market trajectory to profit booking. It is a market which is trending on the upside but it is quite overbought on the short term charts. You will go through this slight choppiness due to profit booking at higher levels, but the outlook for the broader market still remains bullish, said Mitesh Thacker.

NIFTY 3-Month

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