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Market Report

Friday, 30-Dec-2016


  • Equity benchmark Sensex on Friday settled at 26,626.46, up 260.31 points, or +0.99 per cent, against its previous close 26,366.15. The 30-share pack, which opened at 26,441.51, hit an an intraday high of 26,678.60 and a low of 26,406.53. On similar lines, the broader Nifty50 of the NSE ended 82.20 points, or +1.01 per cent, higher at 8,185.80 today.

  • Despite being battered by demonetisation shock and other global events including Brexit and Donald Trump's win in the US Presidential election, domestic equities at NSE made a remarkable and sharp turnaround at the far end and ended the last trading session of 2016 on a positive note, leaving investors cheerful for the New Year. Till last week, the equities were lagging in the negative zone in terms of yearly performance. On a yearly basis, the Senex saw a rise of +1.95 per cent, against -5 per cent drop in the Calendar Year 2015. The Nifty50 closed around +3.01 per cent higher from 2015 closing.

  • The NSE Nifty gained around 300 points in the last 4 sessions but failed to end the year above 8,200 in 2016. On the other hand, Sensex rose as much as 308 points today to settle the year 544 points higher. 2016 was a year marked by volatility from global and local events. Globally, Brexit, and Donald Trump getting elected as US President surprised the markets. Back home, where approval of GST tax bill, good monsoon gave a boost to the markets, demonetisation, and declining bank credit growth casted a negative shadow. But analysts are optimistic for the coming year, with RBI expected to cut rates and annual budget coming up.

  • The bulls flexed their muscles on the last trading day of 2016 as the Nifty50 closed slightly below its crucial resistance level of 8,200 today. It formed a strong bull candle on the daily charts for the second day in a row. However, the outlook is cautious as the index also witnessed 'Death Cross' after June 2015. A Death Cross is formed when the long term moving average breaks above its short-term moving average indicating a bearish outlook for the year 2017. The Nifty50's 200-DMA (long-term average) placed at 8,261 broke above its short-term moving average (50-day SMA) placed at 8,247 today. It looks like the bulls have got an upper hand based on technical data but the momentum will be key, as January is unlikely to be smooth sailing for traders. It should cross 8,230-8,275 levels on a closing basis to sustain the momentum. Traders should remain cautious as the intermediate trend is still bearish and one piece of bad news can lead the index to test its support levels.

NIFTY 3-Month

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