Nifty will move higher if it closes above 8,280
We had mentioned in Monday’s closing report that a close below 8,215 will increase the chances of a decline. The Indian benchmark opened Tuesday higher and moved in a narrow range. However, it just managed to keep itself above the level of 8,215.
The S&P BSE Sensex opened at 27,478 while NSE’s CNX Nifty opened at 8,260. Sensex moved in the range of 27,312 and 27,478 while Nifty moved between 8,221 and 8,268.
Sensex closed at 27,404 (up 8 points or 0.03%) and Nifty closed at 8,248 (up 2 points or 0.02%). NSE recorded a volume of 65.08 crore shares. India VIX rose 1.92% to close at 14.8625.
The Indian cabinet Monday gave an approval to the Land Acquisition Act through the ordinance route for amendments. The government said that urgency of the land acquisition ordinance was because under Section 105 of the Act, 13 pieces of legislation including the Atomic Energy Act 1962, Railways Act 1989, National Highways Act 1956, and Metro Railways (Construction of Works) Act, 1978 needed clarity on which provisions of the Act applies to them. In addition, their exclusion deadline ends on 1 January 2015.
The Indian economy is better placed than it was six months ago because of slowing inflation, political stability and a lower current account deficit, but the banking sector remains subdued because of weak demand for credit and pressure on asset quality, the Reserve Bank of India (RBI) said in its bi-annual Financial Stability Report (FSR).
Coming back to stock markets, Adani Ports (7.70%) was the top gainer in ‘A’ group on the BSE. The stock hit its 52-week high today. BEML (7.15%) was among the top two gainers of the group. The stock rose on the news of changes in Land Acquisition Act that will help infrastructure companies. In other news, Singareni Collieries Company Ltd purchased a ten cubic metre shovel from BEML for Rs12 crore.
PMC Fincorp (4.97%) and Rasoya Proteins (4.93%) continued to be among the top losers in the ‘A’ group on the BSE.
BHEL (1.51%) was the top gainer in the Sensex 30 pack. It has joined hands with Midhani and HSL to set up a consortium that will build submarines indigenously and bid for a Navy project.
Hero MotoCorp (2.09%) was the top loser in the Sensex 30 stock.
US indices closed Monday flat. Except for Jakarta Composite (0.94%) all the other Asian indices closed in the red. Nikkei 225 (1.57%) was the top loser.
European indices were trading in the red. US Futures were trading marginally lower.
Disappointing inflation data from Spain and growing concerns over political tensions in Greece affected market sentiments.
A close below 8,215 will increase the chances of a decline
In Friday’s closing report we had mentioned that the S&P CNX Nifty will come out of its downtrend at least temporarily if it closes above 8,213 on Monday. Today the index opened two points above this level and moved higher.
The S&P BSE Sensex opened with a gap at 27,266 while Nifty opened at 8,215. The benchmarks went to hit a high at 27,507 and 8,279 respectively. Sensex closed at 27,396 (up 154 points or 0.57%), while Nifty closed at 8,247 (up 46 points or 0.56%).
NSE recorded a volume of 60.78 crore shares. India VIX fell 0.43% to close at 14.5825.
Finance Minister Arun Jaitley on Monday said manufacturing continued to be a concern, despite reforms initiated by the government. The conditions would not drastically change till radical steps are taken, he said.
Inflows of foreign direct investment into India rose by about 25% to $17.35 billion in the April-October period of the current fiscal, Commerce and Industry Minister Nirmala Sitharaman said today.
Aban Offshore (17.43%) was the top gainer in ‘A’ group on the BSE. Credit Analysis and Research Ratings revised credit rating of bank facilities by 3 notches to BB- from D.
Revision takes into account improvement in capital structure consequent to mobilisation of fresh equity during FY14 (refers to the period April 1 to March 31) and H1FY15, improvement in the financial performance during FY14 and H1FY15 and completion of refinancing of debt at the group level.
Essar Oil (2.16%) was among the top six losers in ‘A’ group on the BSE. It recently said that it will convert over USD 1 billion worth of rupee loan into dollar debt by March to reduce its cost of borrowings and will acquire group firm, Vadinar Power Company, for Rs 2,100 crore.
Sesa Sterlite (3.81%) was the top gainer in the Sensex 30 pack. Kotak Institutional Equities upgraded the stock to 'buy' from 'reduce' as the stock now offers favourable risk-reward for investors.
Bharti Airtel (0.80%) was the top loser among Sensex 30 stocks. It informed BSE that in view of the news reports that a consultation paper will be issued shortly by TRAI on issues relating to services offered by OTT players including VoIP, it has decided not to implement the proposed launch of VoIP packs.
On Friday US indices closed in the green.
Asian indices showed mixed performance. Hang Seng (1.82%) was the top gainer while Seoul Composite (1.04%) was the top loser.
According to reports, China has cut its target for the growth of external trade to 6% for 2015, compared with a 7.5% target this year. That is considerably slower than the official growth rate of the entire economy, which expanded 7.4% from a year earlier in the first three quarters, reports added.
Japan's Cabinet approved 3.5 trillion yen ($29 billion) in fresh stimulus on Saturday, 27 December 2014 for the ailing economy, pledging to get growth back on track and restore the country's precarious public finances.
European indices were mostly in the red while US Futures were trading in the red.
The Greek government failed to elect a new president, increasing the chances of early parliamentary elections in the country. Prime Minister Antonis Samaras' preferred candidate failed to gain the 180 votes needed to win the election.
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