Business Market 04 Sep 2019 Nifty support seen n ...

Nifty support seen near 10637

DECCAN CHRONICLE. | RAVI RANJAN PRASAD
Published Sep 4, 2019, 1:51 am IST
Updated Sep 4, 2019, 1:52 am IST
The sharp fall in rupee to Rs 72.40 per dollar as against previous close at 71.40 by one rupee made the matter worse for the foreign investors.
 The sharp fall in rupee to Rs 72.40 per dollar as against previous close at 71.40 by one rupee made the matter worse for the foreign investors.

Benchmark indices Sensex and Nifty 50 fell more than two per cent on mounting slowdown worries reflected in latest economic data. Sensex fell 2.06 per cent closing at 36562.91 down 769.88 points while the Nifty 50 closed 2.04 per cent or 225.35 points down at 10797.90.

Growth in eight core sectors of India slipped to 2.1 per cent during July, in comparison to 7.3 per cent during the corresponding month last year, which also was a dampener for the markets.

Also negative cues in form of lowest GDP growth in last 25 quarters at 5 per cent for April-June 2019 period, lower auto sales for August, August GST collections falling below Rs 1 lakh crore and fears of PSU banks merger announcement slowing down credit growth led to selling in the equities as market opened after Monday holiday.

The broader market indices fell too with BSE Mid-Cap Index down 1.65 per cent and BSE Small-Cap Index down 1.32 per cent and the Nifty Mid-Cap 50 down 2.05 per cent.

The sharp fall in rupee to Rs 72.40 per dollar as against previous close at 71.40 by one rupee made the matter worse for the foreign investors.

Technical View
Nagaraj Shetti, Technical Research Analyst, HDFC Securities said, "Downside momentum seems to have gathered strength, after showing a reasonable weakness from the hurdle of 11,150 levels in the previous 2-3 sessions."

"Technically, the Nifty witnessing a sharp weakness, post upside recovery of Friday, signals that the bears are still actively participating in the market. Next important supports to be watched is at 10637 levels, which is a low of August 23, where one may expect another attempt of upside bounce from the lows. Immediate resistance is placed at 10870 levels," Shetti said.

Market View
Joseph Thomas, Head of Research, Emkay Wealth Management said, "The sharp fall in the Q1 GDP growth to 5 per cent  and the weak core sector growth are the key factors that have caused a fall in the markets as it opened after a long weekend. The continuing negative global cues, the raging tariff war between the US and China, and the likely sluggishness in the economic fortunes of economies around the world have also been behind the rot in the markets here as well as elsewhere."

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