ZIGZAG
MOVEMENTS
Nifty
8115 +140
A
roller coaster week in which Nifty witnessed a huge upswing with all
indices closing in the green and Nifty too getting into positive
territory for the week with only One day to go for the week. Nifty
closed above 8100 mark and would turn bearish only when it closes
below 8020. However, one more positive day only would confirm the
bullishness. Further, Nifty has been moving in a narrow range for the
month despite a large move, and is yet to find a direction for the
month. Nifty spot is expected to encounter resistance at 8155, 8190
and find support at 8075, 8040 for Friday. While Global cues
and Funds flow are expected to broadly guide the market
movement, based on the present market position, market can be
expected to be generally subdued in the midsession and witness
zigzag movements thereafter.
SENSEX.
NIFTY AGAIN ON HIGHS
Indian
markets today logged their best daily gain since May 12 with Sensex
jumping 481 points to 27,112.21 and Nifty soaring over 139 points to
8,114.75 bolstered by Fed's continued pledge to retain rates at low
levels and rising optimism over trade ties with China. Fuelled by
foreign funds buying, all the 12 sectoral indices closed with gains
between 0.58 per cent and 4.65 per cent. Realty, consumer durable,
capital goods, auto, power and banking were the pacesetters in the
surge. The benchmark S&P BSE 30-share Sensex resumed lower and
touched a low of 26,503.08. It, however, quickly rebounded in line
with positive Asian trends to cross 27K-mark and hit high of
27,132.20, before settling at 1-1/2-week high of 27,112.21 -- a rise
of 480.92 points or 1.81 per cent. Previously, it had zoomed 556.77
points or 2.42 per cent on May 12. Similarly, the 50-share NSE Nifty
regained 8,100 level and touched the day's high of 8,120.85 before
settling 139.25 points higher at 8,114.75. Previously, it had zoomed
155.45 points on May 12. In a statement, the US Federal Reserve
Chairwoman Janet Yellen yesterday in its policy setting meeting
promised to keep the interest rates near zero for a "considerable
time after its bonds buying programme comes to an end in October,
giving immediate relief to the emerging markets, including India as
fears of immediate capital outflows have subsided. Meanwhile, India
today signed a 5-year trade and economic cooperation agreement with
China with a view to improve the trade balance and obtain USD 20
billion Chinese investments. "With US rate rise possibilities
becoming a more distant reality, emerging economies including India
can expect to keep their hot monies 'hot' for some more time,"
said Debopam Chaudhuri, Chief Economist, ZyFin Research. Major Sensex
gainers were Hero Motocorp (5.67 per cent), HDFC (3.73 per cent),
Tata Motors (3.70 per cent), L&T (3.57 per cent), BHEL (3.51 per
cent) and Bajaj Auto (3.47 percent). Participants were truly excited
by the prospects of huge investments by China in India's
infrastructure, railway & manufacturing projects, according to
Devang Mehta, Sr. VP & Head - Equity Advisory, Anand Rathi
Financial Services. Asian stocks gained in choppy trade after the US
Federal Reserve after a two-day policy meet renewed a pledge to keep
interest rates near zero for a considerable time and announced a
further USD 10 billion reduction in monthly bond purchases.
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