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Market Report

Friday, 05-Aug-2016

NSE

  • The Sensex recaptured the crucial psychological level of 28,000 to settle the day at 28,078.35, up 363.98 points, or +1.31 per cent. Twenty-three of the 30 index stocks ended higher. The Nifty50 added 132.05 points, or +1.54 per cent, to end at 8,683.15 today. BSE Midcap and Smallcap indices advanced +1.69 per cent and +1.47 per cent,respectively.

  • Optimism over prevailing global liquidity helped the benchmark equity indices reclaim important levels on Friday amid hopes that the market will manage to attract heavy flows over the short to medium term on the back of the recent reforms overdrive, including the just-passed GST bill. Also, our markets climbed higher tracking a rally in European shares after the Bank of England on Thursday lowered its key interest rate by 25 basis points and unveiled a stimulus package to cushion the impact of its exit from the European Union.

  • The Nifty50 rallied over 130 points to reclaim its crucial level of 8,650 on the last trading day of the week. In the process, it formed a 'Long White Day' or long bull candle kind of pattern on the daily candlestick charts. A 'Long White Day' on the daily charts and crossing of the 8,650-8,665 levels on a closing basis are both positive signs for the bulls. If the momentum continues, the index will be on track to hit its next logical target at 8,700-8,750 levels, experts said.

  • Everybody knows that everything is very richly valued, everything looks pretty much overvalued, when you look at the Nifty's trailing numbers. But despite the fact that valuations are so expensive, this rally is likely to continue in the short term. I would not be surprised if the rally takes us to 9,000-9,200 levels, said Rajat Sharma of Sana Securities.

NIFTY 3-Month

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