Business Other News 12 Feb 2019 Market to move withi ...

Market to move within tight range

DECCAN CHRONICLE. | ASHWIN PUNNEN
Published Feb 12, 2019, 12:54 am IST
Updated Feb 12, 2019, 12:54 am IST
The Sensex fell 151.45 points or 0.41 per cent to settle at 36,395.03, while the Nifty 50 fell 54.80 points or 0.50 per cent to settle at 10,888.80.
The market breadth was weak as 835 shares rose and 1714 shares fell.
 The market breadth was weak as 835 shares rose and 1714 shares fell.

The market ended in the red for second straight session as frontline stocks like ONGC, SBI and Reliance Industries came under heavy selling pressure. Investors turned cautious over global uncertainties like US-China trade talks and global growth slowdown.

The Sensex fell 151.45 points or 0.41 per cent to settle at 36,395.03, while the Nifty 50 fell 54.80 points or 0.50 per cent to settle at 10,888.80. The market breadth was weak as 835 shares rose and 1714 shares fell. Selling was heavy in the broader market with the Mid-Cap and Small Cap indices falling 1.47 per cent and 1.51 per cent, respectively.

 

Mahindra & Mahindra (5.31 per cent), ONGC (3.14 per cent)), Bajaj Finance (1.92 per cent), State Bank of India (1.84 per cent), Reliance Ind (1.8 per cent) and Hero MotoCorp (1.68 percent) were the major losers.

Major gainers includes Tata Steel (2.31 per cent), Power Grid Corporation of India (1.36 per cent), HCL Technologies (0.95 per cent), Tata Motors (0.76 per cent), Kotak Mahindra Bank (0.71 per cent) and IndusInd Bank (0.62 per cent)

Sectors like healthcare, capital goods, and energy were in the red.

Analysts are expecting the market to remain range bound with a downward bias.

Technical View
Sameet Chavan, chief analyst-technical and derivatives, Angel Broking said, “The Nifty has successfully managed to defend the mentioned key support zone of 10850–10900. Going ahead, a move beyond Monday’s high of 10931 would bring back some positivity in the market. In this scenario, we may see the Nifty reclaiming 11000 and beyond levels. On the flipside, 10850 remains a sacrosanct support.”

Market View
Jayant Manglik, president, Religare Broking said, “The markets are currently struggling under global pressure, due to the lingering US-China trade war and continuous fund outflow. On the local front, earnings also failed to trigger the needed directional move. The underperformance of the broader markets clearly indicates the lack of appetite for risky bets. In such scenario, we advise preferring index majors over others and limiting leveraged trades.”

Vinod Nair, head of research, Geojit Financial Services, said, “The selling pressure continued in the market despite a rebound in the global market as investors turned risk averse due to upcoming election. The quarter results have not surprised investors while scope of downgrade in earnings further dampened the sentiment. The global trade deal and risk of slowdown in growth continue to give caution while investors remain focused on tomorrows CPI inflation and IIP data to get some direction".

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