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Market Report

Wednesday, 28-Sept-2016

NSE

  • The broader National Stock Exchange Nifty50 ended +0.45 per cent, or 38.75 points higher at 8,745.15 today, while the benchmark Bombay Stock Exchange Sensex closed +0.24 per cent, or 69.11 points higher at 28,292.81 today.

  • After a flat opening, markets staged a recovery in noon trades and closed higher on renewed buying interest in bluechips particularly financials and auto. A strong rebound in European shares amid recovery in global crude oil prices further bolstered trading sentiment during mid-session. Meanwhile, investors are keenly awaiting for the expiry of the September F&O series and roll over positions to the October series due tomorrow.

  • The bulls tried to make a comeback on Dalal Street today ahead of Thursday's September F&O expiry, but the Nifty50 failed to close above 8,750, or even yesterday's intraday high of 8,768, which suggests a bearish undertone. The index formed a 'Small Bull' candle on the daily candlestick charts today while some thought the formation was similar to a 'Bullish Harami' pattern. A short bull candle formed after a 'small bear candle' signifies indecisiveness among the bulls as well as the bears. It is important for the index to hold above the 8,820 level on a closing basis in order to be able to sustain the upside momentum.

  • The market is in a consolidation mode, said Mazhar Mohammad, Chart Strategist. The corrective structure which is in force from the high of 8,968 shall end only below 8,688, unless it unfolds in the form of a triangle, he said. If a triangular structure is developing, then the Nifty50 shall remain rangebound for one or two weeks, inside the range between 8,893 and 8,690 levels. On the other hand, if Nifty50 slips below the 8,688 level, then a critical support is available between 8,653 and 8,630 levels, where the correction can be expected to end, Mohammad said.

NIFTY 3-Month

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