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Market Report

Monday, 04-July-2016

NSE

  • The S&P BSE Sensex rallied as much as 130 points in intra-day trade, but gave up about 100 points to end the day at 27,278.76, up 133.85 points, or +0.49 per cent. Nifty50 went up to a 10-month high in intraday, before it ended at 8,370.70, up 42.35 points or +0.51 per cent.

  • Benchmark shares continued their winning streak for the sixth straight session after reports over the progress of the monsoon and expectations that the crucial GST Bill will be passed in the monsoon session of the parliament. The Nifty50 rallied to kissing distance of the crucial 8,400 mark, but weak opening of European markets cut short the rally.

  • The Nifty50 failed to keep the momentum going after a gap-up start on Monday and made a 'Gravestone Doji ' on daily candlestick charts and completed a 'Sanku' (Three Gaps) kind of pattern. The formation of Gravestone Doji along with Sanku pattern suggests a reversal in trend at least in the short term. Traders should remain cautious in the next 3-4 trading sessions as the possibility of profit booking is higher.

  • Some experts projected that Nifty50 should break beyond the 8,400 mark, if banks play a major role in this rally. Bank Nifty needs to fire a little more to help matters for the Nifty50. Once the private sector banks manage to cobble together a little more gain, private banks will have to move and that will enable the Nifty50 to charge upwards, said Dr CK Narayan.

  • There was a late profit booking observed in many large cap names, notably looking at the pace of the last 5 days of straight momentum, said Kunal Bothra of LKP Securities. I believe that the next key resistance for Nifty is at 8500-8550 mark and support from a very short term view could be upped at 8250 mark. Till the time the Banking index remains above the psychological 18000 mark, Nifty could continue to trend higher, said Bothra.

NIFTY 3-Month

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