Markets Rebound after Three Red Ticks

rebound

Market overview: 29th Dec

Stock markets opened on a positive note and gave a spurt at the first tick itself. Markets followed stronger opening from Asian markets that followed U.S markets Fridays upbeat. Moreover, news that market was expected to grow better in 2015/16 boosted investor sentiments. Economy is expected to grow 5.5% by March 2015 as against 5.3% in September 2014.

Markets witnessed more or less consolidation and finally Both Nifty and SENSEX ended with half percent gains. Market breadth remained positive with 1606 Advances and 1313 Declines. Rupee remained flat at the end of market hours.

Smallcap and Midcap retreated a bit but outperformed throughout the session and ended with 0.96% and 0.84% gains.

Metal sector closed above 2.2% gains. Auto followed with 1.5% gains. PSU Bank ended with marginal losses of 0.4%. Bank Nifty retreated in the last hour and entered negative zone to close with 0.24% losses.

Asian Paints, Sesa Sterlite and Jindal Steel were the top gainers while PNB, Cairn, Bharti Airtel were the top losers. Aban Offshore surged 17% with spurt in volumes after CARE upgraded its ratings from D to BB.

Option Data

Highest OI was witnessed at 8600CE & 8400CE and 8000PE and 8100PE. As per options data 8400 CE and 8100 PE are likely to remain in focus for January series.

Global Markets

On the European front Greek stocks slipped amid financial and political uncertainty ahead of snap election to be held next year.

U.S. futures markets are down which might drag the other markets in the early session itself. The fall would take the indices off record highs and volumes might also fall ahead of New Year holiday week. Energy stocks are likely to take a support with rising oil prices.

Asian markets opened stronger following strong closure by the U.S. markets. Both Nikkei and Hang Seng gained 2% and 0.4% respectively in the morning session itself.

Market Overview for 30th Dec

Nifty took support near 50% retracement and gave bounce back from the said levels. After 3 red ticks Nifty closed on a positive note. If its a corrective of the downfall then Nifty may retreat, in that case we hold 8220-8200 as the immediate support followed by 8160-8120 levels. On the other hand if the bounce continues to make a positive rally we hold 8290 followed by 8370 as the resistance levels.

Stocks to watch for: Adani Enterprises and Hindalco on the upside while HDFC Bank and Indiabulls Real Estate on the downside.

 

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