If Nifty holds Monday’s lows and closes above 8,670, it will be the first sign that the downtrend is over
We had mentioned in last week’s closing report that the move on NSE’s CNX Nifty may remain weak and the short-term support for the index maybe around 8,550. Monday’s session saw Nifty moving in a volatile manner with the occasional move in the green for few minutes. It broke Friday’s low and closed in the red.
S&P BSE Sensex opened at 28,546 while Nifty opened at 8,657. Sensex moved in the range of 28,384 and 28,582 while Nifty moved between 8,612 and 8,664. Sensex closed at 28,438 (down 66 points or 0.23%) while Nifty closed at 8,633 (down 15 points or 0.17%). Bank Nifty moved on without any specific direction today. After a flat opening at 18,787, the index moved between 18,688 and 18,913 and closed at 18,837 (up 58 points or 0.31%). NSE recorded a volume of 73.86 crore shares. India VIX rose 1.42% to close at 15.1775.
The latest data showed that India’s annual rate of inflation based on monthly wholesale price index (WPI) remained in negative zone last month. Annual rate of inflation based on monthly WPI stood at minus 2.06% (provisional) in February 2015 as compared to minus 0.39% (provisional) in January 2015. The WPI for December 2014 was revised to
negative 0.5% as compared to 0.11% reported earlier.
Data released by the government after trading hours on Friday showed that India's merchandise export dipped 15% to $21.55 billion in February 2015 compared with the year ago period. Imports dipped 15.7% to $28.39 billion in February 2015 compared with the year ago period. The trade deficit narrowed to the 17-month low of $6.85 billion in February 2015.
Christine Lagarde, Managing Director of International Monetary Fund (IMF) reportedly said that India's economy is a bright spot in a cloudy global economy and that recent policy reforms and improved business confidence are set to boost the country's growth. Lagarde also said, "India has prepared better than most emerging-market economies for any such external shocks."
Coming back to Indian stock markets, PMC Fincorp (9.98%) was the top gainer in ‘A’ group on the BSE while Monsanto (5.89%) was the top loser in the group.
Infosys (2.28%) was the top gainer in the Sensex 30 pack. It was the in news for merging its core banking product Finacle with its products and platforms subsidiary Edgeverve Systems that was established last year.
Sesa Sterlite (5.16%) was the top loser in the Sensex 30 stock.
On Friday US indices closed in the red. A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy is scheduled on 17-18 March 2015.
The International Energy Agency on Friday said in a monthly report that investors and oil producers should brace for further declines in oil prices, which haven't fallen far enough yet to cut supply. The University of Michigan's consumer sentiment index dropped in March 2015 to its lowest level since November 2014.
Asian indices showed mixed performance. Shanghai Composite (2.26%) was the top gainer while SET Composite index of Thailand (1.69%) was the top loser. European indices were trading strongly high. US premarket futures were also bullish.