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Market Report

Monday, 29-Aug-2016


  • Both the equity benchmarks bounced back smartly in a late afternoon surge. The S&P BSE Sensex swung some 254 points before closing the day at 27,902.66 today, up 120.41 points or +0.43 per cent. The broader Nifty50 of the NSE settled at 8,607.45 today, with a gain of 34.90 points or +0.41 per cent.

  • A domestic market survived choppiness triggered by US Federal Reserve Chair Janet Yellen's hawkish stance on further rate hike, and then saw a bounceback led by buying in several largecap stocks, including index heavyweights Tata Motors and Reliance Industries. Brokerages remained bullish on the whole, while weakness in IT shares capped further upside.

  • Experts seemed divided on the market trajectory. It still remains a buy-on-dips market, but then the momentum seems to have gone out, said Dr CK Narayan. However, Kunal Bothra saw a lot of buying opportunities. This is the third time that the market is finding a lot more buying opportunities. Largecaps such as Reliance Industries drove the market rally in the last 15 minutes of trade. The Bank Nifty supported the market well. Auto stocks also rallied, said Bothra.

  • The Nifty50 staged a smart bounceback in late afternoon trade today to reclaim the crucial psychological level of 8,600. In the process, the index formed a 'Hammer'-like pattern for the second consecutive session on the daily candlestick charts. A 'Hammer' candle indicates that the bulls came to the rescue at lower levels and managed to push the index higher. In other words, it signals capitulation by the sellers to form a bottom accompanied by a price rise, indicating buying at lower levels.

NIFTY 3-Month

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