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Market Report

Friday, 01-July-2016

NSE

  • The S&P BSE Sensex logged over 200-point gains today, the first day of the July F&O series and rallied as much as 145.19 points, or +0.54 per cent, to close at 27,144.91 today, its highest level since October 2015. The Nifty50 surged 40.60 points, or +0.49 per cent, to end at 8,328.35 after topping 8,350 in intra-day trade. In the broader market, both the BSE Midcap and Smallcap indices, up +1.2% and +0.7% each, performed better than the front-liners.

  • The domestic indices traded with a positive bias through the day that saw NSE's Nifty50 reclaim the crucial 8,350 mark, but closed mildly down. Still, it was Nifty's highest level in more than 10 months. Benchmark indices gained for the fifth straight session registering their best weekly gain in five to end at fresh 2016 closing highs on sustained FII buying while encouraging manufacturing data and progress of the monsoon boosted sentiment.

  • Manufacturing activities rose in June to a three-month high from near flat in the first two months of the current financial year, as new orders were forthcoming, the Nikkei Purchasing Managers' Index (PMI) showed today. PMI rose to 51.7 points in June from 50.7 in the previous month. Besides, the southwest monsoon is likely to hit the national capital in two or three days as it picks up the pace and advances further to parts of the northwest India, the meterological department said on Wednesday. However, both these factors could do nothing to lift sentiments in the Street today.

  • It is unlikely that the market would correct a lot from here on. Investor sentiment is positive and the hope is that first quarter earnings will be strong. Some experts advised caution. It may be premature to speak about the entire July series, said CK Narayan. We should definitely have a bullish bias, because that is what the weight of evidence is pointing to. Now, we have had the market going up for the fifth day on the trot. But even as we play on the long side, we should keep some stop losses, said Narayan.

NIFTY 3-Month

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