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Market Report

Thursday, 18-Aug-2016

NSE

  • The S&P BSE Sensex opened 100 points higher and surged even more, holding firm throughout the day, before ending the day at 28,123.44 today, up 118.07 points or +0.42 per cent. The NSE's Nifty50 also rose past the 8,650 mark to close at 8,673.25 today, up 49.20 points or +0.57 per cent.

  • The minutes of the US Federal Reserve's last rate-setting meeting, signalling slim chances of a rate hike anytime soon, lifted the domestic market today with a 118-point recovery in the Sensex snapping a two-day losing streak. The broader market continued its stellar show, as the BSE Midcap index rallied +0.43 per cent and the Smallcap index +1.01 per cent.

  • The Nifty50, which has already rallied over 1,800 points from its 52-week low of 6,825 hit in February, could see some bit of correction, which can take the index towards the 8,400 level in the near term, analysts said. Most market analysts said a consolidation or small correction of up to 200-300 points is likely as the Nifty50 approaches key resistance levels and inflow from foreign institutional investors (FIIs) slows down. Despite the correction, investors should remain invested in the market and keep trailing stop losses to safeguard themselves against any correction arising due to any global event, they say.

  • The Nifty50 rallied over 50 points to top the psychological level of 8,650 today, but failed to reclaim the key resistance level at 8,700. In the process, the Nifty50 formed a 'Small Bull' candle on the daily candlestick charts. In general, the longer the candle, the more intense is the buying or selling activity. If the candles are short, just as the one observed on the charts today, it can be concluded that the trading action was subdued, but on the positive side. Trading remained muted for the most part of the day, but value buying emerged at lower levels, which pulled the index beyond the 8,650 level towards closing.

NIFTY 3-Month

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