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Business Other News 26 Jul 2019 Bears remain in cont ...

Bears remain in control of market

DECCAN CHRONICLE. | ASHWIN J PUNNEN
Published Jul 26, 2019, 2:32 am IST
Updated Jul 26, 2019, 2:32 am IST
The Nifty 50 fell 4.98 per cent in July F&O series, the worst since October 2018 when it declined 13.3 per cent.
The broad market indices like the BSE Mid-Cap Index gained, thereby outperforming the Sensex/Nifty.
 The broad market indices like the BSE Mid-Cap Index gained, thereby outperforming the Sensex/Nifty.

Markets corrected for the sixth consecutive trading session on Thursday on the back of the derivative expiry of the July series. While the Sensex closed 16 points or 0.04 per cent lower at 37830, the Nifty ended 19.15 points or 0.17 per cent lower at 11252.15. The Nifty 50 fell 4.98 per cent in July F&O series, the worst since October 2018 when it declined 13.3 per cent.

The broad market indices like the BSE Mid-Cap Index gained, thereby outperforming the Sensex/Nifty. The market breadth was negative on the BSE/NSE.

 

Sectorally, the top gainers were the BSE Healthcare, IT, Consumer Durables and Bankex indices. The top losers were the BSE Oil and Gas, Metal, Capital Goods and Telecom indices.

The yield on the 10-year benchmark rose 8 basis points to 6.51 percent after the news agency firm Cogencis reported that Prime Minister Modi's office doesn't favour a FX-denominated overseas sovereign bond issuance.

Technical View
"Index opened a day on positive note but showed profit booking after touching high at 11361 and closed a day at 11252 with loss of 19 points. Index managing well above strong support of 11200 zone any break below said levels can increase pressure in Index towards 11100 mark, on the higher side Index has stiff resistance 11350-11420 zone. The Nifty bank closed a day at 29043 with gains of 91 points forming doji candle pattern, support for Nifty bank is coming near 28800-28600 zone and resistance is coming near 29350-29600 zone," Rohit Singre, Senior Technical Analyst, LKP Securities said.

 

Market View
Firm global markets combined with upbeat local cues triggered a strong start but it couldn't sustain for long and gradually drifted lower the session progressed. Meanwhile, volatility remained high across the board and especially in the derivatives counters due to unwinding and rollover of the positions, analysts said.

"The recent decline is reflecting participants' disappointment to the earnings season so far. Markets were already struggling with a lot of domestic and global issues and lack of support from the earnings front has further deteriorated the sentiment. We suggest continuing with negative bias and keeping extra caution in stock selection. The Nifty has next major support at 11100," said Ajit Mishra Vice President, Research, Religare Broking.

 

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