Tuesday, Apr 23, 2024 | Last Update : 03:45 PM IST
Market momentum signalling weakness
Sectorally, buying was seen in telecom, energy, and metals while profit booking was seen in auto, IT, and healthcare stocks.
The market remained range-bound on account of weak GDP data and subdued auto sales numbers.
Investors were also cautious ahead of RBI monetary policy to be held this Friday.
The Sensex rose 8 points to 40802 while the Nifty closed 7 points lower at 12048.
Sectorally, buying was seen in telecom, energy, and metals while profit booking was seen in auto, IT, and healthcare stocks.
The broader markets underperformed as the S&P BSE Mid-Cap Index fell 0.77 per cent while the S&P BSE Small-Cap Index was down 0.39 per cent.
Analysts said market is cautiously awaiting RBI monetary policy especially post weak GDP data.
Technical View
Jay Thakkar, CMT Head Technical and Derivatives Research — AVP Equity Research, Anand Rathi Shares and Stock Broker, said, “Nifty has closed in the negative territory in the last trading session for the second consecutive day; however it has managed to close above 12000 levels. On the lower side, 12000 and 11950 are two crucial support levels and till those are held the probability of an upside is quite high till 12150-12300 levels. The daily momentum indicator MACD is in sell mode with a hinge and a negative divergence which is a worry in the short term. The momentum is signalling weakness whereas the price has not confirmed, so either avoid before either one confirms or buy with a stop loss of 11950 giving price a benefit of doubt.”
For the index one can trade the range by buying near the lower end and selling at higher end of the range or look to wait for breakout on either side to get into the momentum and short-term direction.
Market View
Ajit Mishra, VP — Research, Religare Broking Ltd, said, “The weak Q2GDP data and subdued auto sales numbers is likely to impact the investor sentiments in the short term. All eyes will now be on RBI monetary policy for economic revival measures going forward. On the global front, investors are eagerly awaiting a positive outcome of the US-China trade negotiations which could strengthen the rally in the global markets. In addition, currency and crude price movement will continue to impact investor sentiments.”
