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Market Report

Monday, 03-Oct-2016

NSE

  • The 30-sensitive index Sensex of Bombay Stock Exchange (BSE) which opened at 27997.29 against previous close of 27865.96, rallied over 400 points in trade to hit an intraday high of 28273.02 and a low of 27919.89, before settling at 28,243.29 today, up 377.33 points, or +1.35 per cent. On similar lines, the broader Nifty of National Stock Exchange (NSE) breached the crucial psychological level of 8,700 and closed at 8,738.10 today, up 126.95 points, or +1.47 per cent.

  • Domestic equity markets made a strong comeback today with headline indices rising as much as +1.48 per cent, mainly on enhanced hopes of rate cut by RBI and rally in auto stocks. RBI, backed by the newly-formed monetary policy committee (MPC), is likely cut the policy rate by 25 basis points at its bimonthly credit policy tomorrow, a survey showed. Retail inflation, a key factor that the central bank considers in deciding policy rates, was at 5.05 per cent in August, the lowest in six months.

  • The Nifty50 reclaimed its crucial psychological level of 8,700 at closing today. In the process, it formed a 'Long White Day' kind of pattern on the daily candlestick chart, but the 8,800 level on the Nifty50 will act as a stiff resistance. The index came within kissing distance of the 8,750 mark, but managed to close above its 50-day EMA placed at 8,653, which is a bullish sign. Traders should wait for the index to close decisively above its crucial resistance level of 8,800 to create fresh long positions. Exiting long positions should be held with a stop loss at 8,550.

  • The index has to now cross and hold above the 8,688 level to get relief or bounceback towards 8,767 and then 8,820 levels, said Chandan Taparia of Anand Rathi Financial Services. If the index fails to hold above the 8,558 mark, then it may start the fresh decline towards the 8,400 level, he said.

NIFTY 3-Month

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