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Market Report

Friday, 08-July-2016

NSE

  • The S&P BSE Sensex and the broader Nifty50 index of the NSE opened flat and traded with losses throughout the day. The Sensex closed at 27,126.90 today, down 74.59 points or -0.27 per cent. The Nifty50 settled at 8,323.20 today, down 14.70 points or -0.18 per cent. The BSE Midcap index managed to buck the negative trend and ended +0.10 per cent higher compared with the Sensex.

  • Benchmark share indices remained weak while auto stocks emerged as outperformers with Tata Motors leading the gains after the auto major reported robust retail JLR sales in June. Private lenders ICICI Bank and HDFC Bank continued to be the top Sensex losers along with HDFC, ITC and Bharti Airtel. Investors were cautious ahead of the US jobs data scheduled to be released later in the day. Bond yields were at an all-time low, as investors flocked to safe haven assets. All of this triggered heavy selling in the equity market.

  • Technical charts pointed to the possibility of some profit taking over the next few sessions, with a 'Hammer' like pattern on the daily candlestick charts, but fresh Put writing at strike prices 8,200, 8,300 and 8,500 is likely to lend support to the index. We witnessed good long formation in index futures and these positions are still intact. We believe the resistance at 8,280, 8,300 levels may now act as supports for Nifty. Hence, traders are advised to trade with a positive bias, Angel Broking said in a note.

  • Experts have also remained positive owing to the strong monsoon season. The domestic market is up +9 per cent since the last three months. The Sensex has been led mainly by the industrial and auto sectors, and to some extent, by FMCG and bank stocks. We believe that monsoon-related plays could offer some kind of upsides, said Sanjeev Zarbade of Kotak Securities.

NIFTY 3-Month

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