Mumbai: The markets, on Monday, extended its north-bound journey on the back buying support in technology shares even as financial shares witnessed profit-taking. The BSE benchmark index, the Sensex, opened nearly 300-points higher at 36,881, and soon crossed the 37,000-mark to touch a high of 37,024. The BSE index, thereafter, trimmed gains and at one point slipped into the negative zone to a low of 36,534 – down nearly 500 points from the day’s high. The Sensex finally ended the day with a modest gain of 99 points at 36,694.
Among the Sensex 30 stocks, Tech Mahindra soared 5.5 per cent followed by HCL Technologies, up 3.5 per cent. Reliance, Bharti Airtel, Infosys, Hindustan Unilever, ITC, Sun Pharma and Tata Steel were up 1-3 per cent each. On the negative side, Bajaj Finance, HDFC Bank, HDFC, PowerGrid, ICICI Bank, SBI and Kotak Bank declined 1-2 per cent each.
The Sensex has given a mixed signal at the start of the week, thus indicating that the markets may be quite volatile this week. The BSE index at first gave a buy signal on the weekly Fibonacci chart, but reversed the same in intra-day deals. As per the weekly Fibonacci charts, the BSE index will need to sustain above 36,960-odd levels for further gains. On the flip side, sustained trade below 36,600 can trigger a fall towards 36,200-odd level.
Interestingly, the BSE Sensex has given a clear buy signal on the monthly Fibonacci chart, by crossing the monthly R3 placed at 36,990. As per the monthly Fibonacci chart, the bias for the month is likely to remain positive as long as the BSE index sustains above 34,900-odd level, with near support expected around 36,200 and 35,650.
As per the daily Fibonacci charts, on Tuesday, in case of an up move the BSE Sensex is likely to face resistance around 36,880-36,940-37,000, and in case of a down move, the BSE index may seek support around 36,505-36,450-36,390.
The NSE Nifty today crossed the 200-DMA (Daily Moving Average) for a brief while, before falling back on account of selling pressure at higher levels. The NSE index looks set for a decisive move in the near term. If the Nifty breaks above 10,885, it is likely that the index will look to sustain and settle above it in the coming trading sessions. On the flip side, in case, the Nifty ends below its recent low of 10,676, then we may see a correction up to the 20-DMA around 10,400-odd levels.
Among the key momentum oscillators on the daily charts, the DI (Directional Index) continues to remain positive. The Slow Stochastic too has turned marginally positive. The MACD (Moving Average Convergence Divergence) continues to remain inconclusive, while the 14-day RSI (Relative Strength Index) is hovering near an overbought zone.
Disclaimer: The views expressed in this article are personal and for information purpose only, it does not advocate any buy or sell /recommendation.
