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Market Report

Tuesday, 20-Sept-2016

NSE

  • The Sensex fell 111.30 points, or -0.39 per cent, to close at 28,523.20 today, having risen as much as +0.22 per cent earlier in the session. The Nifty50 again lost the 8,800 mark to close at 8775.90 today, down 32.50 points, or -0.37 per cent after four days of consecutive gains.

  • Benchmark indices ended lower, amid weak Asian cues and easing crude oil prices, as investors turned cautious ahead of the policy meetings of central banks in Japan and the US. Shares all around the world hit the pause button today and the dollar lost ground against the yen, as investors awaited the outcomes of US Federal Reserve and Bank of Japan meetings that will both conclude on Wednesday.

  • The Nifty50 today closed below its crucial level of 8,800, but managed to hold above its support level at 8,750, which is crucial for the market to sustain the momentum on the upside. The index moved in a narrow range and in the porcess, developed a 'Bearish Belt Hold' kind of pattern on the daily candlestick charts after forming a 'Small Bull' candle on Monday. Traders should not read too much into this narrow 56-point move, which is pretty much a part of the consolidation phase being witnessed by the market ahead of US Fed rate review, say experts.

  • The more compelling case for a rate hike, in our opinion, would stem from the Fed's need to regain credibility and ensure that its communication does move the markets, said Abheek Barua of HDFC Bank. We continue to stand by our case for a rate hike of 25 bps in the Fed Funds rate in December, adds Abheek.

NIFTY 3-Month

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