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Market Report

Tuesday, 13-Dec-2016

NSE

  • Equity benchmark Sensex of the BSE surged 182.58 points, or +0.69 per cent, to close at 26,697.82 today. The 30-share pack, which opened at 26,607.65 against previous close of 26,515.24, hit an intraday high of 26724.97 and a low of 26,494.23. The broader Nifty50 index of the National Stock Exchange rose by 51.00 points, or +0.62 per cent, to close at 8,221.80 today.

  • Market gained on account of positive European market and short covering ahead of FED policy tomorrow. Investors are also eyeing today's CPI data to ascertain the extent of demonetizations impact in conjunction with RBI's recent monetary policy stance. The US Fed is widely expected to raise rates for the first time in 2016 at its two-day meeting that starts later today, with markets pricing in a chance of 0.25% to 0.50% hike. Any aggressive rate hike could hit the market more, which is already under pressure over the demonetisation move, as that will lead to outflow of foreign funds from emerging markets, including India.

  • This outflow may have already started, as foreign funds were heavy sellers in today's market. See our 'Market Statistics' page. In spite of that, the Nifty gave a smart upside and closed above its crucial 200-day DMA placed at 8,207 level.

  • The Nifty50 recovered smartly today and reclaimed its crucial resistance level at 8,200. However, analysts still maintained their cautious stance ahead of the outcome of the US Federal Reserve's rate-setting meeting on Wednesday. The Nifty50 formed a Hammer-like pattern on daily candlestick charts. Traders should not make decisions based on one candlestick pattern and wait for further confirmation as Thursday's price action will be crucial post the US Federal Reserve outcome, suggest experts. A close above 8,250-8,275 levels is required for the bulls to regain strength on D-Street while a slip below 8,150 could add to selling pressure, they say.

  • After market hours: India's retail inflation cooled to a two year low of 3.63% in November led by a fall in food prices and below the Street estimate of 3.9%. The fall in inflation is attributed to withdrawl of Rs 500 and Rs 1,000 notes from November 8 onwards which adversely impacted buying power and demand. Retail inflation, as measured by the Consumer Price in October was 4.2%. The overall decline in inflation was due to a moderation in food inflation which fell to 2.11% from 3.32% in October.

NIFTY 3-Month

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