Stocks
Nifty, Sensex may make a major move – Tuesday closing report
Nifty will go down sharply if it closes below 8,250
 
In Monday’s closing report, we had mentioned that NSE’s CNX Nifty may go sideways. However, for the positive trend to continue the Indian benchmark has to stay above 8,270. The 50-share Nifty opened Tuesday in the positive and stayed in the green for major part of the session. Each time the index moved lower it took support at Monday’s close and bounced back. However after 2pm, the index witnessed a sharp fall, breaching the support and recovered to close marginally higher.
 
The S&P BSE Sensex opened at 27,612, while Nifty opened at 8,346. The benchmarks hit a high at 27,670 and 8,357, respectively. Sensex hit a low of 27,325 and closed at 27,426 (down 160 points or 0.58%), while Nifty hit a low of 8,268 and closed at 8,299 (down 24 points or 0.28%). India VIX rose 2.31% to close at 16.4825. NSE recorded a volume of 79.89 crore shares. The Nifty made several unsuccessful attempts to head higher but has been stuck around 8,300.  It is now ready to make a major move. If it closes below 8,250, the downfall will be sharp and quick. If not, it will struggle to move higher.
 
India's Index of industrial production (IIP) increased at five-months high pace of 3.8% in November 2014, recovering from the sharpest pace in three-years at 4.2% recorded in October 2014. The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India rose to 5% in December 2014 from nine-year low of 4.4% in November 2014, while snapping consistent decline for last four sequential months.
 
The government will release data on WPI for December 2014 at 12 noon on Wednesday.
Finance Minister Arun Jaitely had said that the government has taken major steps to improve the investment climate in the last several months and it will continue to do so.
 
Oil prices continued to move lower on Tuesday with Brent crude and US WTI both falling to their lowest in almost six years as the global supply glut continued.
 
Emami (6.57%) was among the top two gainers in ‘A’ group on the BSE. The stock hit its 52-week high today. FIIs holding in the company fell from 17.23% to 16.47% as on December 2014, while DIIs holding and retail holding increased from 1.43% and 8.60% to 1.52% and 9.27% respectively.
 
Unitech (5.29%) was the top loser in ‘A’ group on the BSE. It was recently in news as CBI was considering the closure of Tata Realty-Unitech land deal case. The case was re-opened to probe into whether funds from the Rs1,700 crore Tata Realty-Unitech land deal were diverted for spectrum purchase. The case may soon be closed on the ground that the Supreme Court had not directed the agency to carry out more investigations into the matter.
 
Wipro (1.18%) was among the top two gainers in the Sensex 30 pack. There is a report that Rishad Premji, now the chief strategy officer of Wipro could assume the vice chairman's position in the coming months.
 
With the recent fall in the stock prices of PSU Coal India and ONGC, the finance ministry is learnt to be reconsidering sale of stake in these companies. ONGC (2.37%) was the top loser in the Sensex 30 stock.
 
On Monday, US indices closed deeply in the red after openly sharply higher. Asian indices showed mixed performance. KLSE Composite (0.80%) was the top gainer while Nikkei 225 (0.64%) was the top loser.
 
China's exports climbed more than estimated last month as stronger demand from abroad helps bolster growth. Overseas shipments rose 9.7% in December from a year earlier. Imports fell 2.4%, leaving a trade surplus of $49.61 billion, the customs administration said in Beijing.
European indices were trading higher. US Futures too were trading in green.
 

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Nifty, Sensex may go sideways – Monday closing report

As long as Nifty stays above 8,270, the index will edge higher

 

In Friday’s closing report, we had mentioned that the Nifty may continue to edge higher if it manages to stay above 8,240. The index opened lower but started moving higher.
After reaching near to Friday’s close the index moved sideways up to the beginning of the noon session. It then lost its strength and went into the negative. It regained strength and moved higher and finally managed closing the session in the green for the third consecutive session. Market sentiments were initially affected by the concern that Europe's stimulus plans may not solve the euro region's economic woes.
 
Sensex opened at 27,524 and hit its low at 27,324 while Nifty opened at 8,291 and hit its low at 8,246. At the end of the session Sensex reached up to 27,621 and closed at 27,585 (up 127 points or 0.46%) while Nifty reached up to 8,333 and closed at 8,323 (up 39 points or 0.46%). The NSE recorded a volume of 74.84 crore shares. India VIX rose 0.97% to close at 16.1100.
 
Today, the government will unveil industrial production data for November 2014 and on CPI inflation for December 2014.
 
India plans to implement a common goods and services tax across the country in the course of next year, Finance Minister Arun Jaitley reportedly said today.
 
India's growth slowdown has bottomed out and the pace of economic expansion is expected to accelerate, finance ministry's chief economic adviser Arvind Subramanian reportedly said on Monday.
 
BEML (10.07%) was among the top two gainers in ‘A’ group on the BSE. The stock hit its 52-week high today. It recently received Star Performer Award in the export category for the year 2012-13 at an event organised by EEPC India.
 
Videocon Industries (6.07%) was the top loser in ‘A’ group on the BSE. BSE has asked for a clarification from the company for the new article appearing in media that it is looking at buyers for its telecom business.
 
Hindustan Unilever (3.84%) continued to be the top gainer in Sensex 30 pack. It hit its new 52-week high today.
 
Finance Minister Arun Jaitley today said the divestment programme would be pursued on priority and will involve more than one PSU during this quarter ending March. Coal India (4.54%) was the top loser in Sensex 30 stock.
 
On Friday US indices closed in the red. US job growth increased briskly in December, but wages posted their biggest decline in at least eight years in a sign the tightening labour market has yet to give much of a boost to workers. Nonfarm payrolls increased by 252,000 last month after an upwardly revised jump of 353,000 in November, the Labor Department said. The jobless rate fell 0.2 percentage point to a 6-1/2-year low of 5.6%, but that was mainly because people left the labour force.
 
Asian indices which were trading today showed mixed performance. Hang Seng (0.45%) and NZSE 50 (0.45%) were the top gainers while Shanghai Composite (1.71%) was the top loser.
 
European indices were in the green while US Futures were trading higher. French gross domestic product expanded 0.1% in the fourth quarter from the third, the central bank said.
 

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