Cricket World Cup 2019

Business Market 11 Jun 2019 Upside bounce unlike ...

Upside bounce unlikely to sustain

DECCAN CHRONICLE. | RAVI RANJAN PRASAD
Published Jun 11, 2019, 1:22 am IST
Updated Jun 11, 2019, 1:22 am IST
After a partial recovery the Sensex and Nifty-50 finally closed with gains of 0.4 per cent.
The Sensex closed at 39,784 with a gain of 168.62 points or 0.43 per cent while the Nifty-50 closed at 11,922.70 up 52.05 points or 0.44 per cent.
 The Sensex closed at 39,784 with a gain of 168.62 points or 0.43 per cent while the Nifty-50 closed at 11,922.70 up 52.05 points or 0.44 per cent.

It was a volatile day in the market on Monday with benchmark indices soaring 364 points to near 40,000 mark but falling sharply from intra-day high of 39,979 to day's low of 39,615.

After a partial recovery the Sensex and Nifty-50 finally closed with gains of 0.4 per cent. The Sensex closed at 39,784 with a gain of 168.62 points or 0.43 per cent while the Nifty-50 closed at 11,922.70 up 52.05 points or 0.44 per cent.
The broader market indices underperformed the benchmarks as BSE Mid-Cap gained 0.11 per cent while Small-Cap fell 0.49 per cent.

 

The advance-decline ratio on BSE was in favour of losers with 1,636 stocks declining and only 985 stocks advancing. Among the sectoral indices BSE IT index was the top gainer at 1.78 per cent, other sectoral gainers included FMCG (1.10 per cent), Technology (1.61 per cent), Telecom (0.61 per cent). Among the losers were Oil& Gas (-1.20 per cent), Bankex (-0.10 per cent). PSU banks fell sharply with the Nifty PSU Bank index down 1.53 per cent, Jammu & Kashmir Bank fell 12.71 per cent on NSE after the ouster of its chairman accused of irregularities in the bank.

Among the top gainers on NSE Nifty-50 Britannia (3.47 per cent), Tech Mahindra (2.41 per cent), TCS (2.17 per cent), Dr Reddy (1.95 per cent) and Infosys (1.88 per cent). Foreign portfolio were net sellers of equities worth Rs 216.20 crore while the domestic institutions were net buyers by Rs 170.62.

Technical View
Nagaraj Shetti, Technical Research Analyst, HDFC Securities said, "The Nifty witnessed an upside bounce on Monday amidst a choppy trend and closed the day higher. The underlying short term trend of the Nifty is slightly positive. Present upside bounce is unlikely to sustain for long. Key overhead resistance to be watched is at 11,980-12,000 levels." Ruchit Jain, Equity Technical Analyst, Angel Broking said, "During the last week, the Nifty index had managed to pullback from its support around 11,770 and hence, this now becomes a crucial support from a near term perspective. While the index has conquered the 12,000 mark several times in last couple of weeks, it has been unable to sustain above the same and hence, it seems that the market is undergoing a time-wise correction within an uptrend."

Market View
Umesh Mehta, head of Research, Samco Securities said, "The Nifty opened the week higher, however, the broader indices faced pressure and there was no significant momentum visible to thrust the markets to previous high levels. Infact, the Nifty has formed a new range and if the pressure persists, the benchmark indices can fall lower. Banking and financial stocks were under a lot of stress and the Bank Nifty fell by 0.43 per cent intraday despite RBI's latest revised circular on stressed assets which is more bank friendly."

...


Cricket World Cup 2019


ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT