Mumbai: The benchmark indices traded in a relatively narrow range on Thursday, as focus shifted on stock specific action. The BSE benchmark index, the Sensex, moved in a 350-odd point range, touching a low of 31,363 and a high of 31,705, before settling 242 points lower at 31,443.
Among the Sensex 30 stocks, IndusInd Bank soared 6.5 per cent to Rs. 454. Mahindra & Mahindra, Reliance, Axis Bank and Tech Mahindra were the only other gainers – up 2-3 per cent each. On the other hand, ONGC and NTPC plunged around 4.5 per cent each. Kotak Bank, Bharti Airtel and Titan were the other major losers down over 3 per cent each.
All sectoral indices, barring the BSE Energy index, ended in the negative terrain. The Energy index was up nearly 2 per cent largely on account of smart gain in Reliance. The FMCG, Finance, Utilities, Bankex, Capital Goods, Consumer Durables and Power indices were the major losers.
The market was once again marginally negative – out of 2,487 stocks traded on the BSE, 1,290 declined while 1,026 advanced. Today, 36 stocks touched a fresh 52-week high while 92 stocks declined to a new 52-week low.
With the trading range been narrow, there has been no fresh indication from the benchmark indices. Hence, the broader outlook remains the same, with the possibility of the Sensex making new lows for the month and resistance around 32,750-odd level.
The downside target for the Sensex, as explained yesterday, would be the monthly Fibonacci S2 and S3 levels placed at 30,525 and 29,770, respectively. On Friday, as per the daily Fibonacci charts, the Sensex may seek support around 31,315-31,270-31,230, while in case of an up move the index may face resistance around 31,575-31,615-31,655.
The NSE Nifty seems to be holding above the 20-DMA (Daily Moving Average) for the last three trading sessions. The 20-DMA has now moved higher to 9,190-odd level, and may soon converge with the 50-DMA which is around 9,610-odd levels.
Theoretically, as and when the 20-DMA moves above the 50-DMA the short-term trend is said to be bullish. Given the current scenario, the crossover may happen sometime next week. Below the 20-DMA, the next significant support for the index is around 8,980-odd level which is the trend line support. Thus, it seems like the Nifty may attempt a pull-back in the near term, unless global cues or domestic news flow play spoilsport. Having said that, it also sees that the upside may be capped around 9,700-odd levels.
The key momentum oscillators continue to remain mixed. The Slow Stochastic continues to remain in favour of the bears, while the MACD (Moving Average Convergence Divergence), albeit showing signs of tiredness, remains in favour of the bulls. The Directional Index and the 14-day RSI (Relative Strength Index) are in neutral mode.
Disclaimer: The article is for information purpose only and does not advocate any buy or sell /recommendation.
