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Market Report

Thursday, 23-June-2016


  • Like yesterday, our market gave a smart upside in the second half of trade and the Sensex closed at 27,002.22 today, up 236.57 points or +0.88 per cent. The broader Nifty50 went up 66.75 points or +0.81 per cent, to end the day at 8270.45 today, closing above the crucial level at 8,250.

  • The 30-share S&P BSE sensex rallied 236 points to reclaim the psychologically important 27,000 mark while Nifty50 rose 66 points to top 8,270. Considering the flat opening for both the indices in the morning and the fact that the Brexit vote results will be out before the opening bell Friday, it seemed investors expect a huge rally after the final verdict.

  • There was great buoyancy in global markets as the Brits thronged the booths to decide whether they will stay in the 28-nation European Union or not. However, it would take much more than a referendum of this kind for Britain to walk out of the EU as the result of today's referendum is not legally binding. It is the British Parliament which will finally have to take a decision, and within Britain the political setup on both sides is largely in favour of staying with the EU. Thus, the positive buoyancy.

  • Investors will watch out for the Brexit poll outcome as it is expected to affect our markets when it opens for trade tomorrow. Many Dalal Street veterans even said in as many words that Friday might turn out to be a big day for the domestic market. Beyond the 8,250 mark on Nifty50, there is a good chance that the market is discounting this (Brexit vote) as a positive event. If that happens, we might have a good gapup opening tomorrow. So buying into options can be a slightly safer way, said Mitesh Thacker.

  • However, some experts advised caution. If the vote is conclusively in favour of Britain staying within the EU, the upside for the market might not be that evident. Nifty may touch the 8,500 mark in the short term. However, if Brexit does happen, it could be catastrophic across asset classes, said Mayuresh Joshi of Angel Broking.

NIFTY 3-Month

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