Tuesday, May 6, 2014

Market Summary for the day : 06/05/2014

After snapping five consecutive sessions’ depreciating streak in the last session, local equity markets settled with gain of around quarter percent on Tuesday, which lifted Sensex and Nifty above the crucial 22,500 and 6700 levels respectively. However, unlike previous trading session, benchmarks made substantial recovery in the last hour of trade, besides gains in broader indices, which went home with gains in the range of 0.35%-0.50% amidst positive global counterparts. Relentless buying in index heavyweights such as ICICI Bank, Reliance Industries (RIL) and ITC, mainly underpinned the gains at Dalal Street. 

The HSBC Services Purchasing Managers' Index, compiled by Markit, rose to 48.5 in April from 47.5 in March, but held stubbornly below the 50-mark that divides growth from contraction.  On the global front, European and Asian equities edged lower, with investors trading cautiously ahead of widely tracked U.S. jobs data and as tensions in Ukraine escalated. U.S. non-farm payrolls, is expected to have probably advanced by 210,000 jobs in April, up from a gain of 192,000 in March. 

Sentiment did get a fillip after the Institute for Supply Management's US services sector index rose to 55.2 in April, the fastest pace in eight months. The composite euro-zone purchasing managers’ index for April rose to 54, unchanged from the flash reading, signaling the fastest rate of economic growth in almost three years. 

The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1362: 1380, while 137 scrips remained unchanged.  Closer home, majority of the sectoral indices on BSE contributed to the positive momentum, with exceptions being stocks from Information Technology (IT), Power and Metal counters. While, IT stocks extended its southbound journey, power counter’s drag was led by Tata Power stocks, which featured in the list of worst performer among 30 stock index.

Technical parameters of Nifty: 

RSI was at 54 MACD positive below signal line; India VIX was at 34~ which all Indicate that market are in uptrend for immediate short term.  Today, Nifty closed bleow its 20 DMA (6749) but above , 5DMA (6705), 50 DMA (6556) ,200 DMA (6142) which all indicate that market may see some upside in the near future. 

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