Nifty will weaken if it closes below 8,860
As we mentioned in Wednesday’s closing report, the Thursday move on the Indian indices was highly volatile, partly due to the expiry of January futures and options (F&O).
The S&P BSE Sensex opened at 29,516 while NSE’s CNX Nifty opened at 8,902. After lower opening, both the benchmarks made repeated efforts to rally. During the day, Sensex, and Nifty hit a low at 29,378 and 8,861, respectively. Around 3pm, suddenly the benchmarks made a sharp quick upmove and entered into green zone where it hit its day’s high at 29,741 and 8,967. Sensex closed at 29,682 (up 123 points or 0.41%) while Nifty closed at 8,952 (up 38 points or 0.43%). NSE recorded a huge volume of 113.05 crore shares. India VIX fell 1.71% to close at 19.4325.
The sixth bi-monthly monetary review from the Reserve Bank of India (RBI) is scheduled on 3 February 2015.
The Indian government on Wednesday decided against appealing a court order that absolved Vodafone of Rs3,200 crore tax demand in a transfer pricing case. Telecom Minister Ravi Shankar Prasad said the government wants to convey a clear and positive message to investors globally that it would be "fair, transparent and within the four corners of law.
Union Cabinet on Wednesday approved the proposal of the Department of Telecommunication (DoT) to proceed with auction in 2100 MHz band along with 800, 900 and 1800 MHz bands. The reserve price approved for 2100 MHz Band is Rs3,705 crore pan-India per MHz.
The IMF set a June deadline for making progress on reforms that would give emerging countries more say in how the world lender is run, an attempt to break a standoff created by US failure to ratify the changes.
Global credit rating agency Moody's Investor Service on Thursday said the recommended reforms in food subsidy and distribution will reduce India's inflationary pressures and fiscal deficit.
Coming back to Indian stock markets, HDIL (11.19%) was the top gainer in ‘A’ group on the BSE. After posting weak bottomline in its December 2014 quarter result Oriental Bank of Commerce (10.18%) was the top loser in the group.
Dr Reddy’s Lab (3.74%) was the top gainer in Sensex 30 pack. The stock today posted weak December 2014 quarter result.
HDFC (2.61%) which was the top gainer on Wednesday was the top loser today in the Sensex 30 stock. The mortgage lender today posted its December 2014 quarter result which showed an improvement in its top line and bottom line performance.
US indices closed Wednesday in the red. US Federal Reserve unexpectedly lifted its view on the economy, signalling that the US central bank remains firmly on track with plans to raise interest rates this year.
All the Asian indices closed in the red. Shanghai Composite (1.31%) was the top loser. Japanese retail sales rose 0.2% in December from a year earlier, marking the sixth straight month of increase, the government said today. The figures, released by the Ministry of Economy, Trade and Industry, highlighted that consumer demand continues to rebound after the national sales tax increased to 8% from 5% in April.
European indices were showing mixed performance while US Futures were trading higher. Greece's Prime Minister Alexis Tsipras reportedly said yesterday, 28 January 2015, that he will push for debt relief from the country's international creditors.