Mumbai: The markets exhibited a high amount of volatility today, with the benchmark indices swinging between zones on the back of alternate bouts of buying and selling. Despite fairly positive cues, our markets remained jittery awaiting development over the Indo-China tussle. Going ahead, apart from global cues, coronavirus related updates and developments with regards to the Indo-China border dispute will bear its impact on the markets.
Today, the BSE benchmark index, the Sensex opened with a negative gap of 160-odd points at 33,438, and soon slipped to a low of 33,333. The index, thereafter, rebounded into the positive zone, amid choppy movement touched a high of 33,934 – up 601 points from the day’s low. The BSE index, however, reversed all its gains towards the fag end of the day as traders were nervous to carry overnight positions given the current precarious environment. The Sensex finally settled with a loss of 97 points at 33,508.
Among the Sensex 30 stocks, Kotak Mahindra Bank was the top loser, down nearly 3 per cent. ITC, Mahindra & Mahindra, PowerGrid, HDFC, Asian Paints, NTPC, Hero MotoCorp, Larsen & Toubro, Bajaj Auto, HDFC Bank and HCL Technologies were the other notable losers. On the positive front, Maruti surged over 4 per cent followed by Bharti Airtel up nearly 3.5 per cent. Axis Bank, IndusInd Bank and Bajaj Finance also ended with gains in the range of 1-2 per cent each.
Also Read: Market Outlook: Nifty trading range getting congested; breakout likely soon
The Sensex continues to remain in consolidation mode, moving in a trading range of 32,850-35,000 level. The BSE index is now near the lower-end of the trading range, hence one needs to keep a close eye on 32,850. Sustained trade below this level could trigger a slide for fresh lows in this month. For now, the upside seems capped around 35,000-mark.
As per the daily Fibonacci charts, on Thursday, in case of an up move the BSE Sensex is likely to face resistance around 33,730-33,810-33,880, and in case of a down move, the BSE index may seek support around 33,280-33,200-33,140.
The NSE Nifty declined 0.3 per cent to end at 9,881. The NSE index continues to remain trapped between its 20-DMA (Daily Moving Average) and the 100-DMA. As explained yesterday, the trading zone is getting congested with every passing day and a breakout seems round the corner. The 20-DMA is now placed at 9,725, while the 100-DMA is at 10,130.
Among the key momentum oscillators on the daily charts, the Slow Stochastic continues to remain clearly in favour of the bears, while the MACD (Moving Average Convergence Divergence) and the 14-day RSI (Relative Strength Index) have turned neutral. The DI (Directional Index) is marginally positive.
Disclaimer: The views expressed in this article are personal and for information purpose only, it does not advocate any buy or sell /recommendation.
