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Market Report

Wednesday, 31-Aug-2016

NSE

  • The 30-share Sensex ended at 28,452.17 today, up 109.16 points or +0.39 per cent, while the broader Nifty50 closed at 8,786.20 today, with a gain of 41.85 points or +0.48 per cent. In the process, the equity indices logged monthly gains for the sixth consecutive months.

  • The S&P BSE Sensex opened flat, but quickly gained about 100 points. The NSE's Nifty50 followed suit to hit the 8,800 mark for the first time since April 15, 2015. Both the equity benchmarks hit fresh 52-week highs. The benchmarks lost some momentum through midday, but as soon as Finance Minister Arun Jaitley announced an array of measures for real estate and construction sectors, the market saw good upside, only to give up some of the gains to profit booking in the last 45-minutes, or so.

  • The Nifty50, which hit a fresh 52-week high of 8,819 today, failed to close above its crucial level of 8,800. In the process, it formed a 'Shooting Star' or 'Inverted Hammer' pattern on the daily candlestick charts. This type of price pattern indicates a potential reversal in price. In theory, this pattern gets validated if it is formed after three consecutive bullish candles, which made higher highs. However, today's pattern was made with two successive bullish candlestick patterns. As long as the Nifty50 sustains above the 8,700 level, any dip can be bought into. But a close below the 8,700 level will raise doubts about the sustainability of the current breakout, experts said.

NIFTY 3-Month

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