HomeBusinessMarket Outlook: Sensex to remain negative below 36,600

Market Outlook: Sensex to remain negative below 36,600

Mumbai: The markets traded with a sense of stability in trades on Thursday following an extremely volatile session the day before. The BSE benchmark index, the Sensex, opened nearly 350 points higher at 36,401, but soon pared gains and slipped to a low of 36,038. The BSE index, thereafter, traded in a range bound manner for a major part of the trading session. 

The BSE Sensex rallied to a high of 36,525 on the back of sustained buying support in index heavyweight Infosys and select auto and financial shares. The Sensex finally ended with a gain of 420 points at 36,472.

Among the Sensex 30 stocks, Infosys zoomed 9.5 per cent on the back of better than expected Q1 results. Mahindra & Mahindra, Nestle, IndusInd Bank, Kotak Bank, HCL Technologies, Bajaj Finance and Axis Bank rallied 2-4 per cent each. On the flip side, Tech Mahindra and ITC shed around 2.5 per cent each. NTPC and PowerGrid were the other notable losers.

Also Read: Market Outlook: Sensex swings to Reliance tune; volatility likely to continue

The BSE index moved in a reasonably tight range on Thursday, with little fresh cues for the next trading session. The bias for Friday is likely to remain negative as long as the BSE index sustains below 36,600-level. In case, the Sensex is able to sustain above 36,600, we may witness good gains.

As per the daily Fibonacci charts, on Friday, in case of an up move the BSE Sensex may face resistance around 36,660-36,715-36,770, and in case of a down move, the BSE index is likely to seek support around 36,290-36,230-36,170.

The NSE Nifty for the third straight day managed to sustain above the 20-DMA (Daily Moving Average) despite the intra-day selling pressure. The NSE index is likely to remain positive as long as the Nifty sustains above the DMA around 10,550-odd level. On the upside, the Nifty may attempt to break above the 200-DMA around 10,880.

Among the key momentum oscillators on the daily charts, the Slow Stochastic is showing signs of consolidation. The DI (Directional Index) is positive while the MACD (Moving Average Convergence Divergence) remains inconclusive. The 14-day RSI (Relative Strength Index) is in neutral mode.

Disclaimer: The views expressed in this article are personal and for information purpose only, it does not advocate any buy or sell /recommendation. 

Rex Cano
Rex Cano
Having worked as a journalist mostly in the financial domain for over 20 years, he has gained and applied knowledge of markets in his tenure with established and reputed organisations - IIFL, Sharekhan, Business Standard, HDFC Sec to name a few. He further explored his editorial skills and expertise while working with Free Press Journal and SBI Mutual Fund. He continues to draw inspiration from his passion for numbers with the aim to simplify the market know-how to those who love it.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

spot_img