@rex_cano
Mumbai: After three successive days of high volatility, the markets today consolidated in a very thin range as stock specific action took center stage. Despite, positive global cues our markets under-performed owing to the prevailing nervous sentiment in the backdrop of India-China border dispute.
The BSE benchmark index, the Sensex, opened 80-odd points higher at 39,166 and soon touched a high of 39,236. The BSE index, however, slipped into red in late morning trades and touched a low of 38,943 – an intra-day fall of 293 points. The Sensex thereafter swung between zones and finally ended with a marginal loss of 95 points at 38,991.
Among the Sensex 30 stocks, Titan zoomed nearly 6 per cent. Tech Mahindra and Nestle India surged 3.5 per cent and 2.5 per cent, respectively. Maruti Suzuki, Sun Pharma, Asian Paints, TCS, Infosys and HCL Technologies were the other major gainers. On the flip side, ICICI Bank slipped nearly 2.5 per cent. Bharti Airtel, Axis Bank, Kotak Mahindra Bank, PowerGrid Corporation, IndusInd Bank, ONGC, Bajaj Finance, NTPC and HDFC were the other prominent losers.
Also Read: Market Outlook: Bias likely to favour the bears as long as Nifty remains below 11,650
For the second time in this week, the BSE Sensex has retreated after testing its resistance at 39,240. Hence, the overall bias for Friday would also continue to remain negative as long as the BSE index remains below 39,240-level. On the positive side, a move past last Friday’s close of 39,470 can trigger some short-covering.
As per the daily Fibonacci charts, on Friday, in case of an up move the BSE Sensex may face resistance around 39,100-39,140-39,170, and in case of a down move, the BSE index is likely to seek support around 38,880-38,840-38,810.
The NSE Nifty ended marginally in red at 11,527, after moving in a thin range of 77-odd points. The NSE index touched a high of 11,585 and a low of 11,508 in trades today.
The Nifty continues to remain trapped in between its 20-DMA (Daily Moving Average) at 11,400-odd level and the higher-end of the Bollinger Band around 11,650-odd level. A breakout in either direction will set the next trend. On the upside, the Nifty can rally towards the 12,000-mark, while a downside breakout can trigger a fall towards the 50-DMA at 11,080-odd level. Having said that, the bias is likely to remain negative as long as the Nifty remains below 11,650.
Among the key momentum oscillators on the daily charts, the Slow Stochastic is on the verge of giving a positive divergence, while the MACD (Moving Average Convergence Divergence) continues to remain marginally negative. The DI (Directional Index) too is still marginally positive. The 14-day RSI (Relative Strength Index) is in the neutral zone.
Disclaimer: The views expressed in this article are personal and for information purpose only, it does not advocate any buy or sell /recommendation.
