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Market Report

Monday, 08-Aug-2016

NSE

  • The S&P BSE Sensex ended up 104.22 points, or +0.37 per cent, at 28,182.57 today and the Nifty settled 28.20 points higher, or +0.32 per cent, at 8,711.35 today amid strong global support as better-than-expected US jobs data led to a rally in export-oriented stocks such as IT and pharma.

  • The Nifty50 rallied 100 points to hit a fresh 52-week high today in just 10 trading sessions, aided by short coverings, liquidity push and positive global cues. The Nifty50 has been making higher tops and higher bottoms on the weekly charts, which is a positive sign for the bulls. Now that the index has closed above the crucial level at 8,710 today, there may be a sharp bounce towards the 8,800 and 8,900 levels in the short term, experts said.

  • The outcome of the RBI money policy review tomorrow as well as the next batch of quarterly results are likely to chart the direction of the market this week. Reserve Bank Governor Raghuram Rajan, whose 3-year term will come to an end on September 4, is widely expected to hold the key interest rate on Tuesday as retail inflation continues to be above the comfort zone. In case the central bank surprises the Street, the rally could gain further momentum and can take Nifty50 towards the 8,800 mark shortly, say experts.

  • The Nifty50 registered a 'Doji' Star kind of formation on the Japanese candlestick charts, as it signed off the day near the opening price, signalling caution. A Doji formation ahead of a the RBI money policy review on Tuesday suggested caution. Investors should refrain from creating long positions on Tuesday and wait for the index to cross the 8,750 level on a closing basis, said charting experts.

NIFTY 3-Month

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