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Market Report

Friday, 02-Sept-2016

NSE

  • The 30-share Sensex of the Bombay Stock Exchange opened at 28,498 against the previous close of 28,423. The headline index of BSE hit an intraday high of 28,581 and a low of 28,427, before settling at 28,532.11 today, up 108.63 points or +0.38 per cent. On similar lines, the broader Nifty50 of the National Stock Exchange gained 35.00 points or +0.40 per cent to close at 8,809.65 today.

  • After slipping into the negative territory on Thursday, the domestic stock market made a strong comeback today, with the benchmark indices hitting fresh 52-week highs in less than a week. Our market firmed up in the latter half of the trading session to end higher with auto shares gaining the most on the back of encouraging sales growth in August. However, further upsides remained capped after expectations of a robust US jobs data, due for release later today, would raise the prospects of a rate hike by the US Federal Reserve.

  • The Nifty50 made yet another fresh 52-week high at 8,824, but pared gains towards the fag end of the session to close at 8,809. In the process, the index formed a 'Hanging Man' kind of pattern on the daily candlestick charts. This is a bearish reversal candlestick pattern that is formed at the end of an uptrend or at the top just like the one registered today. A selloff is usually seen as an early indication of a short-term top formation. However, traders should not base their decisions on this pattern alone and assess the candle formed in the next trading session as well and analyse other indicators such as RSI, MACD, ADX and ROC, among others.

  • NSE barometer Nifty50, which hit a 52-week low of 6,825 in February this year, has surged over 29 per cent since then to rule above the 8,800 mark. The BSE Sensex has climbed 6,000-odd points to 28,500 from 22,500 level since then. Market experts believe another 10-15 per cent surge in the equity indices from their current levels looks next to impossible, but technical charts have kept hopes alive.

NIFTY 3-Month

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