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Market Report

Tuesday, 07-June-2016

NSE

  • The S&P BSE Sensex ended up 232.22 points, or +0.87 per cent, to settle above 27,000 at 27,009.67 for the first time since October 28, 2015 and the Nifty50 settled 65.40 points, or +0.80 per cent, higher at 8,266.45 today. In the broader markets, the BSE Midcap and Smallcap indices ended up +0.3% to +1% each. Market breadth was positive with 1481 gainers and 1132 losers on the BSE.

  • Markets ended higher led by banks, amid firm global cues, after the RBI kept key policy rates unchanged amid inflation concerns but maintained an 'accomodative' monetary policy stance going forward. The S&P BSE Sensex rallied to hit a seven-month high and reclaim the crucial psychological level of 27,000. The Nifty50 topped the crucial resistance level at 8,250 but failed to cross the next Resistance at 8290-8300.

  • Global cues also did not disappoint, with the euro zone clocking a better-than-expected GDP growth at +1.7 per cent while German industrial output suggested that a recovery is under way in that economy.

  • The Nifty50 rallied after the RBI maintained an accommodative stance on money policy, but failed to reclaim the crucial resistance level at 8,300 and formed a 'Spinning Top' kind of pattern on the daily candlestick charts. A 'Spinning Top' pattern formed after a short bearish candle signifies that the bulls tried to make a comeback but the bears were successful in pulling the index lower towards the end of the session. Traders should remain cautious and go long only if Nifty50 manages to surpass the 8,336 level successfully on a closing basis.

  • Despite the neutral stance by the RBI, markets are likely to remain rangebound with an upward bias aided by global cues with the delay in interest rate hike by the US Fed and the stability in global crude oil prices. On the domestic front forecast of normal monsoon and better-than-expected earnings have aided sentiment, says Kunj Bansal of Centrum Wealth Management.

NIFTY 3-Month

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