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  Business   Market  30 May 2019  Signs of weakness in underlying trend

Signs of weakness in underlying trend

THE ASIAN AGE. | ASHWIN J PUNNEN
Published : May 30, 2019, 2:37 am IST
Updated : May 30, 2019, 2:37 am IST

On the NSE, ten out of eleven sectoral indices ended lower, led by the NSE Nifty PSU Bank down 2.8 per cent.

The Sensex lost 247 points to end at 39,502, while Nifty ended 67.65 points or 0.57 per cent lower at 11,861.1.
 The Sensex lost 247 points to end at 39,502, while Nifty ended 67.65 points or 0.57 per cent lower at 11,861.1.

The market ended lower on Wednesday after three sessions of gains as weakness came on the back of negative global cues. The Sensex lost 247 points to end at 39,502, while Nifty ended 67.65 points or 0.57 per cent lower at 11,861.1.

On the NSE, ten out of eleven sectoral indices ended lower, led by the NSE Nifty PSU Bank down 2.8 per cent. The BSE Mid Cap index lost more, thereby underperforming the Sensex/Nifty. The market breadth was negative.

According to analysts, with no sign Sino-US trade tensions will let up and fears of an Italy-European Union confrontation growing again, the global bond rally picked pace on Wednesday, as investors dumped shares and ran for the safety of German and US government debt. Ten-year US Treasury bond yields reached 20-month lows, having fallen almost 30 basis points this month.

Technical View

"Wednesday's price action precisely depicts this market's character. Since we are approaching May series expiry, the psychological figures are going to play a vital role and here, 12,000 becomes the centre of attraction. In our sense, we are going to challenge this in next couple of days and somehow writers are going to get intimidated. Whether we close above it this expiry or not that is very difficult to predict at this juncture. But mind you, sooner or later we are likely to surpass this and march towards next important junction of 12,200. For the coming session, 11,864 - 11,812 would be seen as key support levels, Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking.

Analysts said, technically, with the markets ending lower, the underlying trend is showing some signs of weakness. Further downsides are likely once the immediate support of 11,836 is broken. Any rallies could find resistance.

"Nifty closed in the negative territory in the last trading session after three days of consecutive gains. It has reversed from 78.6 per cent retracement level of the previous fall. Now, on the higher side, 11,960 is the immediate resistance and till those levels aren't taken off the short term bias remains negative, so we recommend selling for the target of 11,530 with a stop loss of 11960, said Jay Thakkar, Head Technical and Derivatives Research - AVP Equity Research, Anand Rathi Shares and Stock Brokers.

Tags: sensex, bse, sino-us trade war