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Market Report

Wednesday, 06-Dec-2017

NSE

  • The domestic equity market ended on a negative note today after the RBI monetary policy committee maintained status quo and kept the repo rate unchanged at 6 per cent. BSE Sensex ended 205.26 points or -0.63 per cent lower at 32,597.18 and Nifty50 closed at 10,044.10 today, down -0.73 per cent or 74.15 points, with only 11 advances and 39 stocks closing in the red.

  • According to market experts, the apex bank took the decision after inflation figures jumped to a seven-month high and stronger economic growth reduced the need for monetary stimulus. RBI maintained a neutral stance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2 per cent, while supporting growth. The Central Bank retained economic growth projection for 2017-18 at 6.7% saying that the risks are evenly balanced. In August, the RBI made its only cut in 2017, of 25 basis points, and in October, it held.

  • Nifty50 today fell below its 100-day moving average and registered lower-top lower bottom formation for a sixth trading session. The index missed out on a chance of trend reversal after making a 'Doji' pattern in the previous session. On the daily chart, the index ended up making a bearish candle for a seventh straight session. However, during the session, the index respected the 10,030 level. The 50-pack index needs to stay above the 10,030-50 range to avoid a sharp correction towards 10,000-9,970 levels in the near term. A minor pullback action is likely to face resistance around 10,120-10,130 levels.

NIFTY 3-Month

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