Mumbai: The markets started the week on a shaky note amid weak overseas cues and rising cases of Covid-19 in India. The BSE benchmark index, the Sensex, opened with a negative gap of 110 points at 33,670, and thereafter drifted deeper into red as the day progressed. The BSE index touched an intra-day low of 32,923 – down 850-odd points. The Sensex thereafter recouped some of the losses, but volatility in late trades derailed the recovery process. The Sensex eventually ended with a loss of 552 points at 33,229.
Among the Sensex 30 stocks, Reliance Industries hogged the limelight as the stock registered a fresh all-time high and was the top gainer, up 1.7 per cent. HCL Technologies and Sun Pharma were the other notable gainers. On the other hand, IndusInd Bank tumbled over 7 per cent and was the major loser. Axis Bank, Bajaj Finance, ICICI Bank, NTPC, Tata Steel, ITC, HDFC Bank, Titan, SBI, Larsen & Toubro, Kotak Bank, HDFC, Hero MotoCorp and PowerGrid were the other significant losers.
In today’s trading session there has been no clear indication on the weekly Fibonacci chart. Hence, we can remain focused on the monthly levels as mentioned in the Weekly Outlook. The overall trend for the month is likely to remain volatile, with the possibility of the BSE index facing strong resistance around 34,200 on the upside, and likelihood of a new monthly low in the remaining trading sessions this June.
As per the daily Fibonacci charts, on Tuesday, in case of an up move the BSE Sensex is likely to face resistance around 33,510-33,600-33,690, and in case of a down move, the BSE index may seek support around 32,940-32,850-32,770.
The NSE Nifty declined 1.8 per cent to end at 9,814, after re-testing its support line at 9,726. The NSE index is currently hovering between its 20-DMA (Daily Moving Average) and the 100-DMA placed at 9,620 and 10,180, respectively. The next major support for the NSE index could be the 50-DMA around 9,300. This could be the broader trading range for the Nifty until we witness a clear breakout in either direction.
We have already witnessed a 50 per cent correction of the recent rally, which is a healthy sign. The markets are now in consolidation mode, with resistance on the upside expected around 10,180-10,330. A close and break above 10,330-odd level can open the door towards 10,950-odd level. On the other hand, as long as the Nifty sustains above the 20-DMA around 9,300-odd level, the market will remain in a trading zone. Break and close below 9,300-odd level will trigger a fresh round of weakness in the market.
Among the key momentum oscillators, the MACD (Moving Average Convergence Divergence) and the DI (Directional Index) have seen a negative cross-over, while the Slow Stochastic is also clearly in favour of the bears. Hence, we may see some downward pressure in the very near term. The 14-day RSI (Relative Strength Index) is in neutral mode.
Disclaimer: The article is for information purpose only and does not advocate any buy or sell /recommendation.
