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Market Report

Tuesday, 21-June-2016

NSE

  • The S&P BSE Sensex went through a tedious day to end at 26,812.78 today, down 54.14 points or -0.20 per cent. The Nifty50 went down 55.10 points in intraday today before settling at 8,219.90 with a loss of 18.60 points or -0.23 per cent, holding its crucial level at 8,200.

  • The market remained tepid ahead of the Brexit vote, which is now only two days away. The Nifty50 closed lower amid consolidation after rising for two days in a row as investors engaged in profit booking. However, latest Foreign Direct Investment (FDI) regime for a host of important sectors, along with advancement of monsoon rains capped the downside. The only good news for traders was the fact that the Nifty50 closed above its crucial support level at 8,200.

  • Traders turned cautious on Dalal Street today as the Nifty oscillated in a narrow 30-point range, forming a 'Small Bearish' candle or a small black candle on the daily candlestick charts. A short bearish candle is a neutral chart pattern. Analysts said traders should not take any decision based on the candlestick pattern formed today and wait for further clarity, which would probably emerge after the Brexit vote.

  • The United Kingdom will hold the referendum on June 23 to decide whether Britain should stay with the EU or not. Some analysts say this would be the most important global event this year. A 'Leave' mandate can hold profound implications for various economies in Europe and for countries with which Europe shares deeper trade relations. However, a 'Remain' vote will keep things steady and boost risk-on sentiment. From India's point of view, Brexit is important because besides sharing trade relations, EU is India's largest single export market. No risk analysis can precisely estimate the exact consequences should the British decide to part ways with the EU. But the impact will surely be deeper across financial markets, be it equities, currencies or bonds.

NIFTY 3-Month

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